Darlene is a full-time author and recently published her third romance novel.The royalty income she receives from the publisher this year should be reported on what schedule?

Question

Quizplus · Accepted Answer

Schedule C is used for reporting income and expenses related to a sole proprietorship, including income from writing books. It is appropriate for Darlene to use Schedule C to report her royalty income as a self-employed author. Option A, 1099-INT, is used to report interest income; Option C, 1099-MISC, is used to report miscellaneous income such as nonemployee compensation or rent payments; and Option D, Schedule K-1, is used to report income from partnerships, S corporations, trusts, and estates.

Darlene Is a Full-Time Author and Recently Published Her Third