chet1
New Member

Can a retired director of 501c3 be paid (to make up for career of low salary) in a way that would not subject the money to self employment tax?

Client is paid $30,000 per year, but this is income that was not deferred. The 501c3 is just sending him a Misc 1099 with dollar value in box 7.

Retirement tax questions

Client? Are you a paid tax preparer?

Retirement tax questions

Assuming that the money is not coming from a qualified retirement plan, then I know of no way for this to be treated as something different than self-employment income. Which, in its ultimate origin and concept, is what it really is.

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