Reporting Royalties on Your Tax Return

Royalty Box on 1099-MISCThe United States Tax Code requires publishers to report royalties paid in excess of $10.00 in Box 2 of Form 1099-MISC. As an author, if you’ve earned more than $10.00 in royalty payments from A FontLife Publication, LLC, you will receive a Form 1099-MISC from us before the end of January. Royalties received as a result of creative work such as writing, music and art, is considered self-employment income and is reported on Schedule C. You DO NOT need to send your 1099 form with your tax return, as you do with your W-2 form. The 1099 form is for your records and lets you know the amount we’ve reported to the Internal Revenue Service.

Disclaimer: This article is for your information only and does not substitute for the advice of a qualified, competent tax professional. While we have made every effort to assure the accuracy of this information at the time this article was written, tax laws do change frequently. Understanding and paying taxes under the law is your sole responsibility. Please consult with a tax attorney, certified public accountant, or other tax professional for the current requirements on reporting your royalties.