I've been reporting my royalties on a Schedule C at H&R Block for years now. I recently met with an accountant, and mentioned how we always owe a ton of money at the end of the year, partially due to the royalties.

He asked me how we were reporting them, and told me that a Schedule C is not at all correct, that the royalties should be reported on a Schedule K, and that this might save us some money.

Before I take up H&R on their undoubtedly non-hassle-free DoubleCheck