2018 Royalty Income

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Kram BergGold
    Senior Member
    • Jun 2006
    • 2112

    #1

    2018 Royalty Income

    My client is an employee. As part of his job he develops new fonts. Every year he gets a W-2 and a 1099 for royalties. These royalties are connected to his W-2 job so I report them on Schedule E. His AGI is 100k. In 2018, wlll he get the 20% deduction on the royalty income?
  • Burke
    Senior Member
    • Jan 2008
    • 7068

    #2
    Good question. I have the same situation, although the compensation is paid via 1099MISC since he is an independent contractor and does consulting work for others as well. Then he gets a separate 1099 for the royalties. As far as I know, the 20% deduction was only for "business" income which I assumed was for Sche C's, 1120-S, and 1120's, maybe partnerships, but not royalties? I confess I have not studied up on this as yet.

    Comment

    Working...