![]() ![]() ![]() Limited interest and dividend income reported on a 1099-INT or 1099-DIV.A simple tax return is Form 1040 only (without any additional schedules). TurboTax Free Edition: $0 Federal + $0 State + $0 To File offer is available for simple tax returns only with TurboTax Free Edition.Whether you use Schedule C or Schedule E, the resulting calculation is then transferred to Form 1040. Report your earnings this way, if your writing isn’t an ongoing small business. ![]() If your eBook is a one-shot deal-in that you don’t intend to make a career out of writing-instead of using Schedule C, you can report any royalties earned on Schedule E. You may also have to pay self-employment tax on this income if you earned $400 or more after expenses. For example, if your book earned $15,000 this year in royalties, but you spent $3,000 this year to produce it, you would only have to pay taxes on $12,000 of that income. Tax deductions reduce the amount of income on which you’ll owe taxes. Take deductions from this income on Schedule C for expenses you incurred while writing your book. The IRS considers writers to be small business owners, so you report earnings on Schedule C. Usually, Amazon won’t withhold any of your eBook’s earnings if you have a tax ID or Social Security number, so you’re personally responsible for paying what you owe to the IRS.
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