How report book royalties not earned as part of a business enterprise?

[Anonymous]

I have royalty income from a book. I received a 1099-MISC. When I enter the 1099 information, I am prompted whether it is related to a business or investment. It's neither. I am a professor employed by a university. The book was written in conjunction with that job, but is not a job requirement. When I selected business, it asks me for my business name, etc. to fill out schedule C. I don't have a business, so I cannot answer any of these questions. Where can I actually report this income?

[AnnetteB · Accepted solution]

Since you are not in the business of writing and you are only receiving a royalty, then it will be reported in the Rental Properties and Royalties section of TurboTax.  Use the following steps to go directly to that section of your return:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “royalties” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to royalties”

• Click on the blue “Jump to royalties” link

Skip the first question or so because they will pertain to rental properties and not royalties.  You will come to a screen titled, “Is This a Rental Property or Royalty?” where you can choose Royalty.  You will need to enter a short description for the type of royalty and include an address for the royalty.  Use your own address if the royalty is not associated with an actual property address (such as with a property lease or mineral rights).  Continue moving forward until you get to a summary page for the royalty.  Here you can select Start or Update beside Royalty Income to enter the income amount. 

[bubbalou43]

I have a similar problem. Your answer looks good BUT the resulting Schedule 1 insertion should NOW go into line 8 and not line three (which again opens you into the business minutia).

[VolvoGirl]

Any posts with a June 2019 date are really years old.  When they migrated to this new forum layout all the old dates got changed to June 2019.  So they might not be current info or right now.

[bubbalou43]

@VolvoGirl Thanks VG! I am a MAC user and what I really need is NOT to be some sort of discussion member but rather to find a way to get TurboTax to change their program to GET the program to place the royalty income of non-business owners (the people who are now saying the business name for the 1099 Misc input is N/A, a helpful addition) into line 8 of Schedule 1along with the provider name and "royalty"  (it now goes into line 3 just like the business owners). With an entry in schedule 1 of Line 3 your are still doomed to suffer the Review prodding of what is the business name, etc. I already made the phone call that got the N/A added (wanted more!). Can you help?

[DMarkM1]

If you are not engaged in writing to earn a profit, then it is a hobby.  You should enter the royalty income under "Less Common Income", "Miscellaneous Income", "Hobby Income and Expenses".  That puts the entries in schedule 1, line 8 without any business entries.