Posted by CaSigner on 4/2/05 11:20pm
Msg #29344
1099's
I know we should always give a company we are begining to do business with a W9. But do we get anything back from them at the end of the year? is it true we only get a 1099 if we do over $600 with them. What if we do under?
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Reply by Donna Sac CA on 4/2/05 11:22pm
Msg #29346
It would probably be a good idea if you kept your own records, and I beleive that you must be issued a 1099 if it is reported to the IRS
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Reply by CaSigner on 4/2/05 11:24pm
Msg #29348
Thanks
Thanks
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Reply by Roger/OH on 4/2/05 11:29pm
Msg #29350
A company is required to issue you a 1099 for earnings over $600. Even you don't make that amount with any company, you're still required to report ALL income. Even if a company doesn't issue you a 1099, they still have a record of those payments to you. If they are audited and it's found that they paid you but you didn't report it, that's much more grief than you'll want to have with the IRS.
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Reply by CaSigner on 4/2/05 11:34pm
Msg #29351
Got it, thanks again
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Reply by Doris/CA on 4/3/05 3:33am
Msg #29360
Re: Got it, thanks again
On that I have a good question. I heard that the signatures are not taxable. Let me give you an example, you have a signing and get paid $100.00 for it. You have 4 signatures in your journal for this transaction. You know it is $10.00 per signature that you can charge as a Notary, that would mean your gross income is $60.00. What do you think of that?
In California Handbook it states that the signature, acknowledgement and jurats are not taxable.
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Reply by Nd_WA on 4/3/05 4:37am
Msg #29362
Doris/CA
Your gross income would be report as $100 then $40 is to be exempt from that.
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Reply by PAW_Fl on 4/3/05 7:29am
Msg #29365
Re: Doris/CA
Your notary fees are NOT EXEMPT FROM FEDERAL INCOME TAX. They are exempt ONLY FROM SE TAX calculations. ALL INCOME is required to be reported.
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Reply by Hampton/CA on 4/3/05 11:42am
Msg #29376
To Doris
In your example, $100 would be subject to income tax and $60 would be subject to FICA tax. The $40 for the actual notaries is exempt from FICA taxes.
This is for each individual transaction. You do not get to roll over extra notary fees from signing to signing.
Where in the CA handbook did you find any reference to notary fees and taxes? Is this in the 2005 handbook, because it isn't in any previous handbooks.
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Reply by Cheryl_NV on 4/3/05 11:59am
Msg #29379
Re: To Doris
I do not know if this is any notary handbook or not but it is in the federal tax law. Per the IRS notary fees are exempt from self employment tax.
I am an accountant as well as a nsa
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Reply by ERNA_CA on 4/3/05 12:58pm
Msg #29385
Re: Cheryl ... is it excempt state and fedral? n/m
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Reply by Cheryl_NV on 4/3/05 6:23pm
Msg #29427
Re: Cheryl ... is it excempt state and fedral? n/m
In CA yes. It will be exempt in any state that starts with the Federal AGI
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Reply by ERNA_CA on 4/3/05 6:26pm
Msg #29428
Re: Thank you Cheryl !! n/m
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Reply by Doris/CA on 4/4/05 11:56am
Msg #29517
Re: Cheryl ... is it excempt state and fedral? n/m
So Cheryl, what is the answer to the question. If you earned 100 but 40 are signature (non-taxable) would your gross income is 60 or 100? What would be your gross income on your 1040? I am asking that because of a question of child support. I am suppose to give 20% of my gross income to my ex-husband.
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Reply by Cheryl_NV on 4/4/05 12:09pm
Msg #29518
Re: Cheryl ... is it exempt state and fedral? n/m
Gross is $100
Income taxable is $100
Self Employed tax is on $60, $40 is exempt from self employment tax
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Reply by doris/CA on 4/4/05 2:37pm
Msg #29545
Re: Cheryl ... is it exempt state and fedral? n/m
Would I pay tax on 100$?. I don't understand this exempt from self employment tax. Let say I am in the 28% bracket, would I pay 28% of 100?
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Reply by Cheryl_NV on 4/4/05 2:39pm
Msg #29547
Re: Cheryl ... is it exempt state and fedral? n/m
Doris,
You would pay 28% income tax on the $100 less your expenses. Plus you would pay 13.2% self employment tax on the $60.00
I hope this helps.
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