Sent in W-9 to company but didn't receive payment or 1099 yet. Do I have to report the income?

[smorgasborddd]

I was employed by a publishing company as an illustrator. I am being payed in royalties, and submitted my W-9 to them. I did not yet receive payment for the royalties or a 1099 from the company. The income is just under $300. Would I have to report this on my taxes?

[HelenC12]

@smorgasborddd 

Yes, the IRS requires you to report the $300 royalty income even if you didn't get a a1099-MISC Form, if you received payment in the form of cash, check, credit card, crypto or other legal form of payment.  If you haven't received any royalty payments, no, don't report the income until you receive it. 

• 1099-MISC forms are only required to be issued if the dollar amount is $600 or more. 

To enter your royalty income,

1. In TurboTax, select Federal from the left side navigation bar.
2. Select Wages & Income from the top tabs.
3. Type royalty income in the search bar and select the Jump to.
4. If you land on the Your 2021 rentals and royalties summary screen, scroll down to Add another rental or royalty.
5. Continue with the onscreen interview until complete.

[Edited 03/22/22|11:57 am PST]

[smorgasborddd]

I have to report the income even if I have not received it? 

To clarify, I have not received any money from the publisher. I only have an Excel spreadsheet that shows what they owe me. 

[JulieS]

No, you don't have to report it if you did not receive it and they did not issue a payment. 

While HelenC12 is correct that you do need to report royalties even if you don't get a 1099-MISC, that doesn't apply if you were not paid by the publisher.

That being said, have you contacted the publisher about when you will be paid? If they tried to pay you last year, but the check was returned, you would need to report it in 2021. 

[smorgasborddd]

Thank you very much for the info. I have contacted the publisher on multiple occasions. They have not issued payment for any authors or illustrators in the company. I am continuing to follow up with the company.