Posted by North County Notary on 8/6/04 6:32pm
Msg #5657
Tax question
AS a notary, do we need a TAX ID #? I know that our notary fees are non-taxeable. Except for additional fees such as travel charges or any payment that goes above our normal Notary Fees.
So come tax time, do you just claim the extra income as such?? Or do most of you have TAX ID #'s? And the FED and STATE just deduct as you go??
Recommend hiring an accountant/bookkeeper?
Thanks for any/all help in this matter.
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Reply by PAW Notary Services on 8/6/04 8:16pm
Msg #5666
>>>AS a notary, do we need a TAX ID #?<<<
Need? No. Should have? Yes! Why? Privacy and minimize identity theft. You can, and in my opinion, should have an EIN. You can get them from the IRS with a phone call. Refer to message #3225 for links and further information.
>>>I know that our notary fees are non-taxeable.<<<
All income is taxable. Even notary fees. However, the amount allowed by your state for a notarization is NOT SUBJECT TO SE TAXES. That means, when you do your tax return, you must calculate your Self Employment taxes, you can deduct the allowable notary fee for notarization.
>>>And the FED and STATE just deduct as you go??<<<
I strongly suggest visiting the IRS website (http://www.irs.gov/) and search for estimated payments. There are rules to follow that will determine whether or not you need to file quarterly returns. And you will need to check with your own state's tax office for guidance about state taxes.
>>>Recommend hiring an accountant/bookkeeper?<<<
If you aren't sure on how to setup your business for taxes, I recommend getting an accountant that does small business accounting and taxes. At least for the first year. Once you know the ropes, you may be able to manage it yourself.
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