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.
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.
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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