Can anyone let me know how taxes work in the US for Directors' Fees received from an oversees company? It is more than $600 a year and will be monthly and quarterly. Do I just declare it on the 1099-misc? And how heavy are the taxes on misc income.

Is there a difference if the directors fee is taxed or not taxed where the company resides.

If the person being paid is a U.S. citizen or U.S. resident, then ALL world-wide income is subject to U.S. income taxes.

The director's fees IS probably considered non-employee compensation, but the foreign company may NOT generate a Form 1099-MISC. Regardless, it must be reported on Schedule C and is subject to both income and self-employment taxes.

Most directors would be highly paid individuals, so his/her salary probably exceeds the $106,400 limit for assessment of Social Security taxes. That being the case, the self-employement tax will only be 2.9%.

The top marginal tax rate is currently 35%, so the most he will pay is about 38%.