Royalty income

[Lindagrl1]

How do I list royalty income from a 1099 Misc from a broker, such as TD Ameritrade? Neither of the two choices applies.

[JohnW152]

Sometimes income doesn't fit neatly into a category.I assume that you're seeing the following as your choices:

• Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E
• Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. 

If neither of these seem to fit what you need, please clarify -- what type of income is this?  Please provide as much information as possible.

Please refer to the TurboTax Help article How do I enter a 1099-MISC for royalty income? for more information.

[Lindagrl1]

Thanks for your reply. The royalty distributions are from a trust company.

[DaveF1006]

 Here is the best way to report this income so that it doesn't appear as Schedule C business income.

1.  Go to federal>wages and income>rental properties and royalties
2.  Click on the start button
3. Scroll through the screens until it asks if this is a rental or royalty, indicate it is a royalty and provide as mush information as you can regarding property description etc.Make sure you indicate which state the royalty property is in.
4. Answer yes that all the income you receive belongs to you.
5. What type of royalty property. If it isn't listed say none. I would imagine since this was issued by Ameritrade, it is from investment income as JohnW152 describes in his post listed above.
6. Once you enter your Royalty Information, you will receive a Royalty Summary.  Here you can enter your royalty income. 
7. Next screen will give you an option on how to enter your royalty income, indicate that the income was reported on a 1099-MISC. 
8. From here, you can enter your information that is in the 1099 MISC.

[Lindagrl1]

Dave F1006, thank you for your message. It was helpful. Walking through it screen by screen, helped me to get to the right solution.