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Gamecock
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Is Form 1099 Box 2 Royalties income taxed at a different rate from Form 1099 Box 7 Nonemployee Compensation income?

As an author and speaker, I earn royalties on my books and a speaker's fee when I lead seminars based upon them.  However a 2016 Form 1099 I just received lumped both forms of income into Line 7.  Should I request a revised Form 1099 that breaks Royalties income out in Box 2?  Why or why not?

Thanks!

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Is Form 1099 Box 2 Royalties income taxed at a different rate from Form 1099 Box 7 Nonemployee Compensation income?

Box 7 is self-employed income that requires that SE (Self employment tax - Medicare and Social Security) if over $400 to be paid.  Very different than royalties.   If the 1099-MISC is incorrect you need to get it corrected.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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1 Reply

Is Form 1099 Box 2 Royalties income taxed at a different rate from Form 1099 Box 7 Nonemployee Compensation income?

Box 7 is self-employed income that requires that SE (Self employment tax - Medicare and Social Security) if over $400 to be paid.  Very different than royalties.   If the 1099-MISC is incorrect you need to get it corrected.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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