royalty income from self publishing

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ketanco
Posts: 130
Joined: Wed Jul 24, 2013 7:09 pm

royalty income from self publishing

Post by ketanco » Wed Mar 20, 2019 3:52 am

I self published few books before 2018 and received royalty income from amazon from their sales, and they sent me 1099 misc for 2018. Now, where do I enter it? Schedule C or E? I was not engaged in writing business anymore in 2018. Just received royalty. Before I was doing schedule C but I was also publishing and working on it. In 2018 I didn't work on it or published anything new.

fru-gal
Posts: 1269
Joined: Wed Jan 02, 2019 9:48 pm
Location: New England

Re: royalty income from self publishing

Post by fru-gal » Wed Mar 20, 2019 6:03 am

I'm not a tax professional, but the instructions for schedule E -

https://www.irs.gov/pub/irs-pdf/i1040se.pdf

say royalties go in it.

blackburnian
Posts: 107
Joined: Thu May 04, 2017 12:40 pm

Re: royalty income from self publishing

Post by blackburnian » Wed Mar 20, 2019 6:41 am

I just had my taxes done by a professional, and she put my book royalty income on Schedule 1 (Additional Income and Adjustments to Income), line 21 ("other income") and wrote in "royalties" after the arrow. (Like you, I am no longer working as a professional writer, so Schedule C is inappropriate.) I believe the "royalties" line on Schedule E is for things like oil and gas royalties, but don't quote me on that.

Quirkz
Posts: 248
Joined: Mon Jan 14, 2019 5:32 pm

Re: royalty income from self publishing

Post by Quirkz » Wed Mar 20, 2019 9:51 am

I've been looking into that this year, too.

- The IRS is very clear if you're still working at writing it goes in C. (There's an explicit quote on Schedule E that roughly says "don't put it here if you're actively making art".)

- Everything else I've seen says once you're no longer active, it goes on E.

Topic Author
ketanco
Posts: 130
Joined: Wed Jul 24, 2013 7:09 pm

Re: royalty income from self publishing

Post by ketanco » Wed Mar 20, 2019 3:41 pm

and also look at page E-6 n schedule E instructions top right... it says "if you are in the business" use schedule C. so if you are not in the business anymore, you can use schedule E (or like you did, schedule 1 line 21 ) then .

this sentence doesn't mean "if you were in the business when this activity occurred" right? because that would mean you would have to use schedule C all your life even long after you stop doing the writing job ....

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