To enter royalty income in the TaxAct program:

1. First, follow the steps in our article Schedule E - Entering Rental Property in Program to add Schedule E (Form 1040) to your tax return.
2. Within your Schedule E, continue with the interview process until you reach the screen titled Rental and Royalty Income - Property Type.
3. Click the Property type dropdown, then click 6 Royalties.
4. Continue with the interview process to enter your information.

Royalty income is generally reported on Schedule E; however, if you are in business as a self-employed writer, inventor, artist, etc., report your royalty income and expenses on Schedule C (Form 1040) Profit or Loss From Business (if you need help accessing Schedule C, read our article Schedule C - Entering Sole Proprietorship in Program.

After you complete Schedule E (or Schedule C), you can report royalty income that was reported to you on Form 1099-MISC.

If you need help accessing Form 1099-MISC, read our article Form 1099-MISC - Entering in Program.

1. From within your Form 1099-MISC, continue with the interview process until you reach the screen titled 1099-MISC: Enter information on form.
2. Click the data entry field below Box 2 - Royalties, and type the amount.
3. Continue with the interview process to enter your information. Assign Form 1099-MISC to the Schedule E or Schedule C that pertains to the royalty income.

Related Links

• Royalties - General Information

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.