Posted by Bonnie/FL on 8/13/05 11:43am
Msg #58837

IRS Tax time

Have a question and I am getting mixed answers. Per my Notary Siging Agent Log I am breaking down the Gross Sale (Schedule C) and what I am reporting on Schedule SE (ie., in Florida I can charge $10 per notarized doc, so I notarize 5 docs = $50 worth of notorizations, but I get paid $100 for the whole job, BUT claim only $50 on Schedule SE since I don't have to have to be taxed on the Gross amount (the original $100). Is that correct? I checked with my accountant when I had a question about the mileage expense and he said I was wrong. I am taxed on the whole job (the original $100) and it does not matter how many docs I notarize, I cannot remove that from the gross amount. ANyone know what I am supposed to be reporting? Thanks to everyone.

Reply by Bonnie/FL on 8/13/05 11:45am
Msg #58838

Forgot to add I have only been doing this since February here in Florida as a Notary. I have been a Paralegal for 25 years and done hundreds of closings, but of course got a regular paycheck through my employer so now my reporting is self employed and wasn't sure how to handle it.

Reply by Pete/NY on 8/13/05 11:46am
Msg #58839

Your $50 is correct. The fee for notarizations is not subject to SE tax. Only that which is over and above.

Reply by Bonnie/FL on 8/13/05 11:59am
Msg #58843

Thank you, I got it now.

Reply by Brian/CA on 8/13/05 12:12pm
Msg #58845

Maybe your tax accountant and you are talking apples an Oranges. Federal taxes are paid on the whole amount. SS tax is what the $50.00 deduction is for. Refer him/her to IRS Publication 533. My tax person wasn't aware of this, until I took her a copy.

Reply by NY_TaxLady on 8/13/05 12:27pm
Msg #58852

Brian is correct. You do not pay SE taxes on the notarization part. You pay Federal & State taxes on the whole less your deductions though. Good that you are thinking early in the year not when you sit before your Enrolled Agent or CPA.

Reply by BG on 8/13/05 1:16pm
Msg #58865

Absolutely.