How to Report Directors Fees on Your Federal Tax Return

Director's fees are subject to income tax and self-employment tax.
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If you are a member of a board of directors or receive director's fees for sitting on different boards, you must still report these fees to the Internal Revenue Service (IRS) as income.

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Step 1

Director's fees are considered to be nonemployee compensation and any other remuneration by the company paying the fees must be recorded on Form 1099-MISC (in box 7) on the year they were paid to you. As a director, you must record and report these fees in the same way you would other income on your tax return.

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Step 2

Include all fees for your services as a director in your earned income. Specifically, this is referred to as nonemployee compensation.

Step 3

Look for the fee amount on the Form 1099-MISC, which should be sent to you by the organization that paid your fees. It will be necessary to report your fees as self-employment income.

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Step 4

Download a Schedule C or Schedule C-EZ and Schedule SE from the official IRS website. Fill out these forms along with your Form 1040 in order to claim corporate director fees as self-employment income.

Things You'll Need

  • Form 1040

  • Schedule C or C-EZ

  • Schedule SE

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