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x24vy-
New Member

If I'm retired but receiving royalties on later editions of a text in which I do not participate, am I still consider self-employed in re Schedule C?

I'm a retired textbook author receiving royalties on subsequent editions by other authors, am I still regarded as self-employed for purposes of those royalties?
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1 Reply
MindyB
Expert Alumni

If I'm retired but receiving royalties on later editions of a text in which I do not participate, am I still consider self-employed in re Schedule C?

No, you are not considered self-employed from the information you provided. The income from the royalties received on the sales of your textbook should be reported on Schedule E, so you would choose the option "Royalty investment income from a natural resource, intellectual property or other investment portfolio" when entering your 1099-MISC.

 

  • Schedule E is used to report passive royalties.  Since you are not actively pursuing income from the textbook, this meets the definition of a passive activity.
  • Schedule C is used for a business you operated with the primary purpose of profit, and that you are engaged in regularly.

 

Here are the instructions for reporting  How do I enter a 1099-MISC for royalty income?

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