FAQs: Consulting Fee

1. What if I provided my consulting services as a salaried employee of a consulting firm?

If you or your spouse provided consulting services as a salaried employee of a firm, report the salary using the instructions provided in the section of this guide that addresses salary.

2. What if I provided my consulting services as the owner of a sole proprietorship?

For sole a proprietorship, you should describe the type of income as “consulting fees” or “business income” and list the exact amount of gross income in the “Other Income” column. If the sole proprietorship belongs to your spouse, you do not have to report the amount of income, instead write only “spouse’s consulting fee” or “spouse’s business income.”

However, if you or your spouse uses the sole proprietorship to arrange speaking engagements, you need to report each speaking engagement as honoraria on a separate line item with the exact amount received for each engagement. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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