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January 23, 2024
Question

Why is there no Box 2 for Royalties on the 1099 MISC form in the Schedule C section?

  • January 23, 2024
  • 1 reply
  • 0 views
Just choosing 1099 MISC under Wages & Income shows the Royalties box, but it then it says that it needs to be attached to some other form such as Schedule C.

1 reply

January 24, 2024

It's not clear where you want to enter your royalties, but they're typically entered on Schedule E. 

See the TurboTax Help article How do I enter a 1099-MISC for royalty income? for guidance on entering in Schedule E.

However, there are instances when reporting on a Schedule C is appropriate. 

If you provide services in connection with production from oil and gas wells, for example, you'll report the income and expenses on Schedule C. You'll most likely have expenses categorized under Taxes and Other miscellaneous expenses.

To enter your self-employment expenses in TurboTax Online:

  1. Select Tax Home in the left pane
  2. On the Hi, let's keep working on your taxes! screen, select the dropdown to the right of Wages & Income, and select Start, Review/Edit, Work on Other Income, or Pick up where you left off, as appropriate
  3. Scroll down and select the Edit/Add dropdown to the right of Self-employment income and expenses
  4. Select  Edit  near the appropriate self-employment activity
  5. On the  Here's your info for this work screen, scroll down and select Add expenses for this work
  6. From here, you can input your expenses 

See the TurboTax Help article Where do I enter my self-employment business expenses, like home office, vehicle mileage, and supplies? for alternate entry guidance.

If this isn't helpful, clarify how you want to report your royalty income and related expenses.