How do I enter a 1099-MISC for royalty income?
To enter your 1099-MISC for royalty income in TurboTax:
Open or continue your return.
Navigate to the 1099-MISC section:
TurboTax Online/Mobile: Go to 1099-MISC.
TurboTax Desktop: Search for 1099-MISC and select the Jump to link.
When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income:
Royalty investment income from a natural resource, intellectual property or other investment portfolio (no operating interest) – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Royalty income from being self-employed as a writer, investor, artist etc or operating any business derived from natural resources (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C.
Once you've selected the proper classification, follow the onscreen instructions.
