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Box 2 in 1099-MISC. with TaxACT
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fulio Pen  
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 More options Aug 30 2012, 9:28 pm
Newsgroups: misc.taxes
From: fulio Pen <fulio...@yahoo.com>
Date: Thu, 30 Aug 2012 18:28:03 -0700 (PDT)
Local: Thurs, Aug 30 2012 9:28 pm
Subject: Box 2 in 1099-MISC. with TaxACT
I am a university teacher, and published a book on my research.  The publisher has sent me a 1099-MISC form, and the royalties are reported in Box 2 of the form.

I just switched to TaxACT from TurboTax, due to the latter's defects. but with TurboTax, there is a question particularly for the whole 1099-MISC., but it seems not the case with TaxACT. A question on TaxACT is asked about Box 3 and Box 8 exclusively, but not other boxes. Another question asks about royalty property, but doesn't mention the 1099-MISC. form, let alone Box 2 of it. For the moment,  my book earnings are reported here.

I like to know whether or not I did the right thing. In other words, will TaxACT take what I reported as it is in Box 2 of the 1099-MISC. form? If not, where do I need to report the royalties on TaxACT?  

Thanks for your help.

fulio pen


 
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Arthur Kamlet  
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 More options Aug 30 2012, 11:22 pm
Newsgroups: misc.taxes
From: kam...@panix.com (Arthur Kamlet)
Date: Fri, 31 Aug 2012 03:22:25 +0000 (UTC)
Local: Thurs, Aug 30 2012 11:22 pm
Subject: Re: Box 2 in 1099-MISC. with TaxACT
In article <b5424a50-efea-4937-a1cf-6789fcd33520@googlegroups.com>,
fulio Pen  <fulio...@yahoo.com> wrote:

>I am a university teacher, and published a book on my research.  The
>publisher has sent me a 1099-MISC form, and the royalties are reported
>in Box 2 of the form.

>I just switched to TaxACT from TurboTax, due to the latter's defects.
>but with TurboTax, there is a question particularly for the whole
>1099-MISC., but it seems not the case with TaxACT. A question on TaxACT
>is asked about Box 3 and Box 8 exclusively, but not other boxes. Another
>question asks about royalty property, but doesn't mention the 1099-MISC.
>form, let alone Box 2 of it. For the moment,  my book earnings are
>reported here.

>I like to know whether or not I did the right thing. In other words,
>will TaxACT take what I reported as it is in Box 2 of the 1099-MISC.
>form? If not, where do I need to report the royalties on TaxACT?  

I am not familiar with TaxAct.

If the royalty income is due to your own efforts, that is, you
wrote the book, the earnings and expenses are reported to you just as
you said.   You report that income and related expenses on Form 1040
Schedule C and if a profit, probably Schedule SE as well.

Some people receive royalty income because they purchased the
royalty rights or they inherited the rights to the royalty payments,
and the 1099 would look the same.  But in that case the royalty amounts
go on Schedule E and there is no Schedule SE to be concerned with.

Maybe TaxAct puts you through those questions as part of their interview?

No matter.  You need to find a way to get the income you received to
schedule C and expenses go there too.  I'd bet it is smart enough to
then run Schedule C profit through schedule SE all by itself.

One more thing.  If the interview starts to veer off into issues of
gas or oil wells, it might be OK as long as it does not produce a
schedule E.
--

ArtKamlet  at  a o l dot c o m  Columbus OH  K2PZH


 
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