Music royalties income received during retirement considered investment income by IRS

Forum|Forum|2 years ago
February 7, 2024
1 reply
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Hi all,

My wife was a self-employed musician before retiring in 2022, and earned royalties that she still receives annually. The IRS states that this should be entered on a form 1040 schedule E as it is now considered investment income (that is to say, related to work invested in an earlier year).

She still receives an annual 1099-MISC statement related to this royalty from the distribution fund managing it. I have started doing our taxes, in Turbotax, and cannot seem to find anywhere to enter the 2023 royalties such that it goes onto a schedule E.

Please advise.

TurboTax Home & Biz Windows

Vanessa A

To enter your 1099-Misc as royalty income which will then flow to schedule E select the following:

Federal
Income
1099 Misc under Other Common Income
Enter your 1099-Misc

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michaelkamen-comAuthor

Hi, thank you for responding. I already did what you have suggested here. The data flowed to the Business section and was treated as business income. Please advise.

DianeW777

When you entered the 1099-MISCs you should have entered the amount received in box 2. Check your entry to be sure you have the royalties in the right box. If necessary delete the 1099-MISCs and follow the steps below so that they show up on the Schedule E if you are not in business.

Where do I enter my 1099-MISC?
- You can always enter it directly on Schedule E using the steps below. To enter a 1099-MISC for rental properties and royalties (Schedule E) in TurboTax: Search for rental income and expenses and select the Jump to link.

@michaelkamen-com

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