"Signature fees are not federally taxable"
Actually, they *are* taxable income. Notaries can, if they wish, utilize a self-employment tax exemption for the $10/sig fee. It's not automatic... and it's not always wise to take the exemption. There are some pretty significant disadvantages to taking the exemption. If you do, you don't get Social Security work credits. this may or may not be an issue.... but where it will REALLY hurt you is if you become disabled and need to file for Social Security Disability. If you don't have recent work credits on file because you took the exemption, you could be find yourself completely ineligible for disability (SSDI) insurance coverage. It's a nasty little secret a lot of people don't realize. A small tax savings of a few hundred bucks (if that) may not be worth it if you lose tens of thousands in insurance benefits if you find yourself disabled.
I honestly urge notaries to be fully informed about the consequences of taking that exemption. It could be financially devastating. |
