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Royalties. Royalties from copyrights, patents, and oil, gas and mineral properties are taxable as ordinary income. You generally report royalties in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss.
The royalty and lease payments for those that hold royalty interest make them subject to the Net Investment Income surtax of 3.8 percent of the net amount. This would be reported on Form 8960, Line 4. The working interest would be reported on a Schedule C for the gross receipts, expenses and depletion.
Use Form 1099-S to report the sale or exchange of real estate.
The general rule is that you must issue a Form 1099-MISC to any vendors or sub-contractors you have paid at least $600 in rents, services, prizes and awards, or other income payments in the course of your trade/business in a given tax year (you do not need to issue 1099s for payments made for personal purposes).
A 1099 form is a record that an entity or person other than your employer gave or paid you money. The payer fills out the 1099 form and sends copies to you and the IRS. There are several kinds of 1099 forms.
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Business owners are not required to send Form 1099 to government agencies, tax-exempt organizations or corporations (unless the corporation provides legal, medical or health care services).
Businesses are required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year. For example, a taxpayer might receive a 1099 form if they received dividends, which are cash payments paid to investors for owning a companys stock.
You can file your tax return without 1099 forms. The IRS has several ways of tracking your earnings via Form 1099. Expect to get one if you sold a stock, received interest or dividend income or worked as an independent contractor.
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 (see United States Tax Code ). Book royalties are taxable income and should be included on your tax returns for money received greater than $10.
You generally report royalties in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss. However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C.

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