The income from royalty and manuscript fees

Royalties and advances are a form of income for creators and authors who have licensed their work. When a work, such as a book or song, is licensed for use by another party, the creator typically receives a percentage of the revenue generated from the use of the work. This percentage is known as a royalty. Similarly, when a publisher or distributor of the work pays the creator an upfront payment before distributing the work, it is referred to as an advance. The creator then receives additional royalties once the advance has been recouped through sales of the work. These royalties and advances are considered part of the creator's income and may be subject to taxation, depending on the policies of the creator's country and other factors such as income level.