U.S. · Tax forms
1099-MISC box 2, royalties.
The $10 line, gross before taxes, and the royalties that go elsewhere.
Box 2 of Form 1099-MISC reports gross royalty payments (or similar amounts) of $10 or more. Royalties are reported gross: oil, gas and mineral royalties before severance and other taxes, and publisher payments before fees, commissions or expenses. Royalties are the one common box where the line is $10, not $2,000.
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What counts as a royalty
Box 2 covers royalties from oil, gas or other mineral properties, before reduction for severance and other taxes that may have been withheld and paid. It also covers royalty payments from intangible property such as patents, copyrights, trade names and trademarks.
Authors, publishers and literary agents
The instructions say to report the gross royalties, before reduction for fees, commissions or expenses, paid by a publisher directly to an author or literary agent, unless the agent is a corporation. The literary agent, whether or not a corporation, that receives the royalty on behalf of the author must report the gross royalty payments to the author on Form 1099-MISC, whether or not the publisher reported the payment to the agent.
Royalty-like payments that go elsewhere
| Payment | Where it goes |
|---|---|
| Surface royalties | 1099-MISC box 1 (rents) |
| Oil or gas payments for a working interest | 1099-NEC box 1a |
| Timber royalties under a pay-as-cut contract | Form 1099-S |
Backup withholding
The box 4 instructions say that withholding on royalties applies to box 2 net of severance taxes, if the recipient has not furnished a TIN.
Worked example
A publisher pays an author $4,200 in royalties through the author’s literary agent, who is not a corporation. The agent deducts a 15% commission of $630 before sending the rest. Box 2 shows the gross $4,200, not the $3,570 after commission. If a mineral owner receives $8 in gross royalties for the year, the $10 line is not met.
Related decoders
More 1099 box pages: 1099-MISC box 12, section 409A deferrals, 1099-MISC box 15, nonqualified deferred compensation, 1099-NEC box 2, direct sales of $5,000 or more, 1099-MISC box 1, rents, 1099-NEC box 4, backup withholding at 24 percent. For the 1099-R box 7 codes see the 1099-R distribution codes lookup.
Sources
- Instructions for Forms 1099-MISC and 1099-NEC (12/2026): the box-by-box section for this form. Read November 2, 2026. The IRS page was last reviewed July 1, 2026 and labels the instructions 12/2026.
Edition read: Instructions for Forms 1099-MISC and 1099-NEC (12/2026). The instructions say the $2,000 minimum threshold applies for tax years beginning after 2025 and may be adjusted for inflation beginning in calendar year 2027; check which year your own form covers. This page summarizes the instructions and does not replace them.
Frequently asked questions
What is the 1099-MISC royalty threshold?
Gross royalty payments or similar amounts of $10 or more are reported in box 2.
Are royalties reported before or after fees?
Before. Mineral royalties are reported before severance and other taxes, and publisher payments to authors or agents before fees, commissions or expenses.
Where do surface royalties go?
In box 1 (rents), not box 2, per the instructions.
Are royalties on the 1099-NEC?
Not as royalties, but payments for a working interest in oil or gas are reported in box 1a of Form 1099-NEC, not box 2.
Who reports an author’s royalties when there is an agent?
The literary agent that receives the royalty on behalf of the author must report the gross amount to the author on Form 1099-MISC, whether or not the publisher reported it to the agent.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.