Posted by Eric A. Medina on 8/25/05 10:57pm Msg #61902
No federal taxes
Just though I would let everyone know (if you didn't already) that Notary Fees exempt from Federal Self Employment taxes. See Publication 533 page six at the top of the second column. www.irs.gov <---do a search under forms and publications instead of the whole site. Looks like the IRS is looking out for us at least. Maybe some of you will want to redo your federal returns....
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Reply by Peter Lipke on 8/25/05 11:03pm Msg #61908
Eric - the key is "notary fees" not the notary charge for providing the service. The fee is what your state allows you per signature that you are notarizing so that if your state says $2 and you notaize five signatures, then you can exempt $10 from SE taxes. The rest is subject to Fed and State Tax.
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Reply by Eric A. Medina on 8/25/05 11:12pm Msg #61909
Of course, but most notaries I know here in california charge the full $10.00 per signature and one averages 2 signings a day. That would be between $7,300.00 to $14,600.00 in exempt wages. that is a sizable chunk of change if you ask me. I work for a CPA office in spare time to get valuable tax saving information. plus I get to uses the software for free.
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Reply by Peter Lipke on 8/25/05 11:24pm Msg #61915
Eric
Ok, so we're on the same page. I read your post as if you were saying "all" the money you were receiving from the signing was excluded from SE taxes. If you're making $50 and have five signatures to notarize and you get $10 each, then there aren't any SE taxes due on that signing. However, if you receive $100, then $50 is subject to Fed and State taxes.
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Reply by Roger Rill on 8/26/05 12:11am Msg #61921
Do a search; this has been discussed many times... n/m
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Reply by newlysmomva on 8/26/05 7:55am Msg #61946
Re: Do a search; this has been discussed many times... n/m
Never hurts to discuss it again in my humble opinion!~
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Reply by Calnotary on 8/26/05 10:39am Msg #61972
Re: Eric
No Peter, in you example;
100.00 Signing fee. 5 notarizations. 100.00 is subjet to Fed and State Income taxes depending of you tax bracket, deductions etc 50.00 of those 100.00 is not subjet to SE tax.
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Reply by Peter Lipke on 8/27/05 9:24pm Msg #62272
Calnotary
You're right. I just forgot about it. Answered too quickly.
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Reply by Iris_WA on 8/26/05 9:23am Msg #61955
It's ALL Subject to Federal & State (& City) Taxes
Your notary fees are exempt ONLY from the Self-Employment tax. It is ALL declarable and subject to Federal, State & City taxes, as applicable.
(Just a warning to those who are not taking time to check out the actual publications for themselves.)
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