If you earn income as a writer or author, the IRS generally considers you to be self-employed. As a result, income related to your writing business is typically reported on Schedule C (Profit or Loss From Business).
This applies whether you're a full-time author, freelance writer, journalist, or earn writing income as a side business.
Reporting Royalty Income as an Active Author
Authors often receive royalty payments from publishers for book sales, licensing agreements, or other publishing arrangements. These payments may be reported on Form 1099-MISC.
If you're actively engaged in writing as a trade or business, you can generally report both your writing income and royalty income on the same Schedule C.
Combining this income on Schedule C allows you to:
- Report all business-related income in one place
- Deduct qualifying business expenses related to your writing activity
- Calculate any self-employment tax that may apply
How Do I Enter Author Income in the Program?
To report your author income:
- Federal
- Income (Select My Forms)
- Profit or Loss From Business (Schedule C)
Enter your writing-related income, including any qualifying royalty income connected to your author business, along with any eligible business expenses.
Keep Your Tax Records
Be sure to keep a copy of any Form 1099-MISC you receive with your tax records. The IRS receives a copy of the form as well and may request additional information if there is a difference between the income reported on your return and the amounts reported by the payer.