Level 5

Taxable Board of Director fee

Forum|Forum|3 years ago
February 17, 2023
3 replies
14 views

Received 1099-NEC for $1500 which was a board of director stipend. Can it just be "Other Income" or does it have to go to a schedule C?

Thanks

This topic has been closed for replies.

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Terry53029

Intuit Community Champion

I would put it on other income. on the 1099NEC worksheet there is a box to check other income. If it were a larger amount it should go on C and pay se tax.

sjrcpa

Level 15

@Terry53029 You're basing the decision on whether it is subject to SE tax on the amount?

The more I know the more I don’t know.

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Terry53029

Intuit Community Champion

I am aware that director fees are subject to se tax, but on such a small amount I wouldn't bother with a C.

Maybe if client were receiving every year I might use a C

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PamC

Level 6

On the Misc. Income screen 14.1>Alimony Other Income, about halfway down, there is a field for "Other Income subject to self-employment tax". I usually enter these types on income here with a description.

C

Colmatt1

Level 3

I forgot about that line item. Very helpful thanks.

BobKamman

Level 15

For those requiring further proof of IRS schizophrenia: Page 29 of the 1099 instructions tell you to put director fees on a 1099-MISC. But Page 27 tells you to use 1099-NEC.

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PamC

Level 6

"But then you can't screw the client out of an extra fee for that form."

You can always adjust your charge for Sch SE.

BobKamman

Level 15

I removed that comment because it looks like IRS wants a Schedule C for anything subject to SE tax. Because the trained monkeys at the Service Centers can't figure out where to find 1099 income, otherwise. I would tell a client to jump through their hoops if expecting a refund, but to avoid additional work if there is a balance due on the return. Especially if the amount of tax involved is below the CP2000 criteria.

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