FAQs: Sources of Compensation

1. I was paid exactly $5,000 for teaching one class at a local community college. I have not taught any other classes or received any other payments. Do I have to list the college on my nominee report?

You do not have to report the college in Schedule D, Part II because your compensation did not exceed $5,000.

However, you need to report your position in Schedule D, Part I. You also may need to report this income in Schedule A if you received the income during the Schedule A reporting period.

2. I am paid $3,000 per year for my services as board director for Allied Business Computing, Inc. I receive no other compensation from the company. Do I report the company in Schedule D, Part II?

No. Even though you may have received more than $5,000 across the entire reporting period, you do not have to report this source in Schedule D, Part II because you received only $3,000 per year, which is less than the threshold of more than $5,000 in any one calendar year.

However, you need to report your position in Schedule D, Part I. You also may need to report this income in Schedule A if you received the income during the Schedule A reporting period. 

 

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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