I wrote a book last year, I received a 1099-MISC from Amazon for the total income (all of $400). What forms do I need to complete?

[roger-schulz]

I have no inventory, other than a few copies that I purchased to give to friends as a promotion. How do I show my expenses? What forms am I supposed to be completing?

[MichaelMc · Accepted solution]

Form 1099-MISC is used to report various types of income. If Amazon paid you royalties on your published work, you should report this income on Schedule E. If the payments were reported in Box 7 as Non-employee Compensation, you should report on Schedule C, as self-employment income.

In either case, the TurboTax interview will give you an opportunity to enter any deductible expenses that you have incurred related to the production of the reported income.

It is entirely possible that you have deductible expenses that you have not considered. Do you have any business assets acquired in 2017 or earlier that should be depreciated in 2018? If you are using an office in your home for your writing, you would want to take that valuable deduction in 2018.

For more information, please refer to:

IRS Pub. 334 Tax Guide for Small Business

[roger-schulz]

When I enter the 1099-MISC, T.T. automatically sends me to a Schedule C, not Sch E.  The payments were NOT reported as Non Employee Comp.  How do I just use Sch E?