Trying to figure out income from deceased actor husband’s residuals and royalties

[whatakik2]

 My husband was an actor and passed away 10/2018. This year, I kept getting errors when all his residual and royalty income was under a business expense.

I moved it following  instructions posted by Irene2805 in response to a similar question to less common income:

Report the residuals as Miscellaneous Income, using these steps:

1. Click on Federal > Wages & Income   
2. In the Less Common Income section , click on theStart/Update box next to Miscellaneous Income, 1099-A, 1099-C. 
3. On the Let's Work on Any Miscellaneous Income screen, click the Start/Update box next to Other reportable income.
4. On the screen, Any Other Taxable Income? click the Yes box. 
5.  On the next screen, Other Taxable Income, enter a description and the amount.  Click Continue. 
6. The amount entered will appear on line 7 of the 1040.

But now I have different errors on the Miscellaneous Income 1099 form: For Royalties I have to pick either Schedule C or E??? Or Residuals in Box 3 I have to pick either C or F???

I would appreciate some help! 

Thanks!

[DianeC958]

For the Royalties you can link it to Schedule E as long as on the 1099-Misc you received it was not reported in Box 7.  If the income was reported in Box 7 the you need to report it on Schedule C.

On the Residuals if the amount of the income is in Box 3 and you answer the questions it will flow to as Other Income and does not need to be connected to Schedule C or F.

[whatakik2]

Thank you for your reply. I checked the box “Other Income” in Box 7, is that the correct answer?

[ColeenD3]

Box 7 is Non-Employee Compensation. That needs to be reported on Schedule C.

Box 3 is Other Income, it is not reported on Schedule C. It is reported as other income.

There is no "Other Income" in Box 7.

[whatakik2]

You are right, I checked Other Income in Box 3, is that correct??

[ColeenD3 · Accepted solution]

So, if the income is in Box 3, follow these steps:

1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer).

1. Click on Federal Taxes at the top of the screen.
2. At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;
3. Scroll down the page to the last section titled: Less common Income and click show more;
4. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
5. Scroll down to the last option titled Other reportable income and select start or edit;
6. When it asks, "Any other reportable income?" say yes then type in a description and the amount to report it on your tax return.

This will place it Other Income of your Form 1040