Directors fees received for performing services as a director of a corporation are
self employment income if you are not an employee of the company and
must be reported on your tax return. It does not matter
whether the directors fees are for going to directors meetings or for serving on
committees established by the directors. The
earnings are taxable in the tax year received and must be reported on your tax return.
Report
taxable directors fees income and expenses on Form 1040, Schedule C.
Figure your self-employment tax
for directors fees on Form 1040, Schedule SE.
If you earn or receive
taxable income during the tax year that is not subject to tax withholding, or if
you do not have enough income tax withheld, you may have to pay estimated tax.
IRS publications about directors fees: For further information about directors fees see IRS Publication 17,Your
Federal Income Tax.
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For further information regarding IRS
rules and regulations and your particular tax or IRS situation you should
consult with a Certified Public Accountant, Enrolled Agent, Attorney, or
other tax advisor.
