How to Report Directors Fees on Your Federal Tax Return

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 as income. In fact, they 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 reported to you. As a director, you must record and report these fees in the same way you would other income.

Instructions

1. Include all fees for your services as a director in your income. Specifically, this is referred to as nonemployee compensation. You need to report the income only if the fees total more than $600 for the year.

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

3. Download a Form 1040 Schedule C or Schedule C-EZ. Fill out and submit this form in order to claim corporate director fees as self-employment income.

References

• Internal Revenue Service: Publication 17 - Other Income
• Internal Revenue Service: Instructions for Form 1099-MISC - Main Contents

Resources

• Internal Revenue Service: Form 1040 (PDF)