Royalties: What they are and how they are reported and taxed.

When someone makes money from the use of your tangible or intangible property you receive taxable royalty payments. This video explores the two different ways royalties can be treated for tax purposes, and shows you how to report royalties that are not specifically related to business income.

To learn more about Self-Employment Tax, click here:    • What is Self-Employment Tax (and why ...  

For more information on the nature of Earned Income, click here:    • What is Earned Income (and why it's i...  

0:00 Introduction:
0:29 What are Royalties?
1:43 How are Royalties taxed?
3:51 How are Royalties reported on the tax return?
5:27 Conclusion

ADDITIONAL INFORMATION AND RESOURCES:

IRS Form Schedule E: "Supplemental Income and Loss": https://www.irs.gov/pub/irs-pdf/f1040...

IRS Form 1099-MISC: "Miscellaneous Information": https://www.irs.gov/pub/irs-pdf/f1099...

The Balance: "What are Royalties?" https://www.thebalancemoney.com/what-...

Image and footage credits:

Wikimedia Commons
Storyblocks.com
Pexels.com

No artificial intelligence was used to research, write, animate, voice, or edit this video

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Creator Music

Outro Music: "Modern Attempt" - Track Tribe under license from YouTube Creator Music

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.