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To enter or review the information for Form 1099-MISC Miscellaneous Income, Box 2 Royalties:

If you have not already entered the applicable Schedule E (Form 1040) Supplemental Income and Loss information:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Rent or Royalty Income in the Federal Quick Q&A Topics menu to expand, then click Royalties.
  3. Click + Add Schedule E, Pg 1 to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.
  5. Select "6 Royalties" from the Property type drop-down, then continue with the interview process to enter all of your applicable royalty information.
  6. On the screen titled Royalty Income - Form 1099-MISC, click Yes.
  7. Click + Add Form 1099-MISC to create a new Form 1099-MISC, then click Continue until you reach the screen titled 1099-MISC: Enter information on form.
  8. Click the Switch to Form Entry (optional) link near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC, then click Save & Close.
  9. Select the applicable "Schedule E" option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

If you have already entered the applicable Schedule E information:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Form 1099-MISC in the Federal Quick Q&A Topics menu, click + Add Form 1099-MISC to create a new copy of the form, then continue until you reach the screen titled 1099-MISC: Enter information on form.
  3. Click the Switch to Form Entry (optional) link near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC, then click Save & Close.
  4. Select the applicable "Schedule E" option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

Income reported in Box 2 is generally reported on Schedule E; however, if you are in the 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 also have federal and/or state tax withholding reported, see Form 1099-MISC - Federal or State Withholding.

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


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