Posted by SFX_ca on 10/24/04 4:18am
Msg #10379

Taxes

For all you mobile notaries, how do you deal with the taxes on the income you generate as a notary? Do you just save your money that you'll be paying to the gov. in a separate account and when the time comes just write on really HUGE check...or what?

Many thanks

Reply by Carolanne_PA on 10/24/04 7:22am
Msg #10380

Consider paying your taxes on a quarterly basis. This makes it easier as well as getting you out of an underpayment penalty.

Reply by suzanne-fl on 10/24/04 8:36am
Msg #10381

you can also incorporate as a sub S corp - ask your accountant about the tax benefits!

Reply by Tony (FL) on 10/24/04 11:01am
Msg #10388

You need to figure out (at the beginning of the year or prior to the end of the first quarter) using the IRS guidelines and Form 1040-ES (http://www.irs.gov/), your projected income and whether you will owe taxes. If the result is yes based on the guidelines, you need to make estimated tax payments on a quarterly basis using the payment vouchers on the 1040 ES Form ( http://www.irs.gov/pub/irs-pdf/f1040es.pdf ). This will also prevent you from having to pay a penalty for not doing so. I keep a separate savings account for my property taxes, homeowners insurance, car insurance, and estimated tax payments. It is great when the bills come and I have only to go to the account and withdraw the money. If estimated tax payments are not necessary then I have the extra cash to use for other purposes.

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