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How to Report Royalty Income Without Generating a Schedule C
I received Patent Income $700 from 1099-MISC, box 3 instead of box 2. In 2017 and 2018 TT didn’t create a schedule C. This year Schedule C was created. How do I report without a Schedule C because I don’t own any business? Thank you so much!
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How to Report Royalty Income Without Generating a Schedule C
In this case, you can put the amount of Box 3 in Box 2 to create the Schedule E and omit the Boc 3 amount and delete the Schedule C.
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How to Report Royalty Income Without Generating a Schedule C
MaryK1101,
Thank you for your quick response! I have 2 more questions.
1) Can I just report the amt and TT lists it in Schedule 1, line 8 without generating any schedule C or E?
2) I put the amt in box 2 and TT asked me to select:
- a) Investment income from property you own
- b) Royalty income from your business, including artist royalties or operating a natural resources business.
Q: None of this apply to my case which is Patent. If I selected option b) then it creates Schedule C
Thank you!
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How to Report Royalty Income Without Generating a Schedule C
If the income is from intellectual property rights you created as as inventor, writer, or artist, it is self-employment income.
You can report it on Schedule 1 line 8, but then the IRS won't recognize it as a 1099-Misc, and may ask you about it.
Report it under the income section
- Select 'Less Common Income'
- Then select 'Miscellaneous Income'
- Then select 'Other reportable income'
- The next screen will ask if you had 'Any Other Taxable Income?' Select Yes.
- The next screens will ask for a description and the amount.
The amount will be reported on Form 1040 Schedule 1 Line 8
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