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Level 2
posted May 3, 2021 8:42:54 AM

Directors' fees from a non-US charity

I am a board member of a non-US charitable foundation.  Where do I report my remuneration? 

 

 

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3 Replies
Expert Alumni
May 4, 2021 5:22:17 PM

You could enter your foreign income as wages by following these steps in TurboTax:

 

  1. Income and expenses
  2. Less Common Income
  3. Miscellaneous Income
  4. Income not already reported on a Form W-2
  5. Indicate that you received other wages
  6. Work through the screens until you come to Any Other Income, indicate that you received other wages
  7. Indicate that you earned wages not reported on a W-2 
  8. Enter the employer's name and the wages received

Level 2
May 5, 2021 12:38:49 AM

Thanks very much, but I might have left out an essential element in my post: I am also resident in the same country, Switzerland, where the board director fees were earned.  Digging further, such fee income seems to be self employment income and counts as foreign earned income, and would be covered by the foreign earned income exclusion as well as the totalization agreement with Switzerland.  This latter should then give priority to the Swiss AVS (=social security) and exempting me from any US Social Security reporting.  I am just not yet clear as how to get there in TurboTax.

Expert Alumni
May 6, 2021 3:45:20 PM

International tax treaty-related questions is out of our scope for advice, unfortunately.  You would need to seek a professional who is specialized in this matter for verification. If your Swiss pension is exempt from the US tax, you would enter the amount as follows:

 

In TurboTax online,

  • Report your full income under the appropriate section. Then enter the treaty exempt amount as negative amount (e.g. -5000) under Federal Taxes / Less Common Income / Miscellaneous Income 1099A, 1099C / Other Reportable Income
  • Download and fill in a Form 8833 from IRS to claim an exception.  https://www.irs.gov/pub/irs-pdf/f8833.pdf
  • You cannot e-file.  You can still use the TurboTax program to prepare your tax forms, but you need to print them out and submit by mail along with the form 8833. 

@JackK1