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