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April 13, 2022
Question

Are stock dividends investment income or royalty income if they were marked as royalty distribution transactions

  • April 13, 2022
  • 1 reply
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They are populating this on a 1099-MISC

1 reply

ColeenD3
April 13, 2022

If you received a royalty on 1099-MISC, enter it on Schedule E.

 

With your return open, search for 1099-MISC and select the Jump to link in the search results.

When you enter your 1099-MISC, enter the income in box 2 - Royalties. On the following screen, choose the source of your royalty income:

  • Investment income from property you own – 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.