Comments by "Jeremy Barlow" (@jeremybarlow2291) on "" video.

  1. Royalties earned on copyrights and patents that you created are subject to social security as I understand it, but royalties from like an oil well lease, or the estate of an author collecting copyright royalties or trademark royalties are not subject to social security tax as I understand it. Of course if the family of the deceased author is actively engaged in the business of marketing the works, the royalties can become self-employment income. Royalties are a very fluid gray area in regards to self-employment taxes. An inventor who licenses a patent to a third-party company and is not actively engaged in the sales of the product is probably ok reporting that income in schedule E instead of schedule C, and the same may be true for the retired author whose works are published by a third-party when they are not actively selling their books anymore, but the IRS really wants that social security money from royalties for the most part.
    1