Director Fees - SE tax?

[Unregistered]

1. I have an 84 year old client who is an honory director and receives $1000 compensation on a 1099 annually. He does attend one meeting a year. Is this Sch C income or line 21?

2. He also receives a "pension" from the bank he previously was president of, approximately 10,000 per year on a 1099 as box 7 income. I believe I have a reasonable basis to list this as non employee income since he no longer provides any services to the bank.

Would appreciate feedback on item 1 and item 2.

P.S. good first round with the Tax Book

thx
Bobby

[Bird Legs]

S E Tax Directors Fees

You might try IRS Pub. 533 & Pub. 334.

[Bees Knees]

TTB, page 5-25 "Corporate director fees. Subject to SE tax."

As to the pension from the bank, since the bank is not using a 1099-R, it was probably a non-qualified deferred compensation plan. FICA is due on non-qualified deferred compensation plans when the participant is no longer at risk to lose the benefits - Section 3121(v)(2) (also see TTB, page 13-21). Since the bank is using a 1099-MISC, box 7, my guess this is for past services and is subject to Social Security tax.