I received 1099-MISC, reporting $15.11 in royalties (box 2) from a company that sold a copy of my dissertation. My all other income has been reported on W-2. I am not sure if I need to report this $15.11 income at all (since it is less than $600) and just go ahead and file 1040EZ, or if I need to report it and file1040. If so, should I use schedule C or schedule E (see 1040 instruction on where to report royalties)? I do not run a business and there were no expenses involved since the dissertation was written some years back. I understand I wouldn't have to file schedule SE since the income was less than $400. Is this correct? What forms would I use to report the royalties for California income tax?
Also, the irony of all, I actually never received the check (for $15.11) and the company is issuing it now... (should I worry that they might issue another 1099 next year for the same amount?) . Any help will be very much appreciated.
2007-03-18 12:43:03 · 6 answers · asked by Kris 1 in Business & Finance ➔ Taxes ➔ United States
You claim royalties on Schedule E. Royalties are not subject to SE tax. The amount isn't the driving force; royalties are not earned income under the tax code and are not subject to Social Security and Medicare taxes. That's why you don't need to file Schedule SE.
Not sure where you get the idea that it isn't taxable just because it's less than $600, but there is no truth in that. It's fully taxable.
If you didn't actually get the money from the payer, contact them and demand it.
2007-03-18 13:19:58 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
1099-misc Royalties
2017-01-01 07:00:16 · answer #2 · answered by ? 4 · 0⤊ 0⤋
1099 Royalties
2016-11-14 10:43:53 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You have to include all income that is reported on a 1099. For royalties it is one simple entry on Schedule E on the line that says royalties. It is in the same area as rental income.
Royalties do not make you subject to SE anyway even if they are over $400.
2007-03-18 13:45:04 · answer #4 · answered by irongrama 6 · 0⤊ 1⤋
Royalties go on Schedule E
if you got a 1099Misc you should report it.
There is no such thing as "over $600." .. if you get a 1099 you need to report income. (whoever sent you the 1099 also sent it to IRS)
this is not self-employment
2007-03-18 12:53:16 · answer #5 · answered by Jeff 3 · 2⤊ 0⤋
Yes and YOU need to use the ROYALTY FORM we got in trouble one year for not doing that. Not serious trouble but we were required to file an amended return by the IRS to correct that issue.
I forget the exact form, but it's the same as for people who license mineral rights such as oil to other companies.
2007-03-18 15:27:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋