Posted by Brian_MA on 12/13/05 7:10am
Msg #82106

IRS - Scary Thought, Question

How have you all dealt with waiting for w-2's from all the different signing companies you deal with? I just realized that i have done a bunch of random little SS's and if i had to wait for W-2's, i might be waiting forever. Do you all just not report the income you dont get tax forms from? (Make sure to post annonomously!)

Reply by NM_CO on 12/13/05 7:14am
Msg #82107

I think there is a section you can fill out where it asks you "if you don't have w2's or you're suppose to, fill in what you made to your best knowledge". Of course it doesn't say it exactly like that but similiar. I had this problem last year but I kept really good records so I was able to plug in around 1k that I didn't get a w2 on.

Reply by MC_oh on 12/13/05 7:32am
Msg #82109

You only receive w-2s if you are an employee. Independent contractors receive 1099s but the ss is only required to send a 1099 if they paid you over 600.00

Reply by NM_CO on 12/13/05 7:37am
Msg #82111

lol, oops, I meant 1099 but that is interesting about the over 600 part. Good to know.

Reply by PE on 12/13/05 8:14am
Msg #82117

Thanks MC for the correct information. Theres alot to learn on the site, but the silly questions, and the ignorant questions from posters who jump into a business practice before fully researching and developing a business plan tends to be a little to much. Had one done a business plan and been in contact with their accountant from the get go they would have known about 1/4qtr taxes, 1099 ect.

Reply by BrendaTx on 12/13/05 8:24am
Msg #82121

I mentored a gal in another town who was totally blown away that she had to report her income.

She kept emailing me back and saying - "Now why do they need my taxpayer ID number? But, why do I have to pay taxes? How do I know what to pay? Do you pay? How much do you pay? Who should tell us what to pay? But, can I get by without paying?"

She kept asking me for specifics - If I had told her all she wanted to know about the financial/tax business part I should have received quite a fee for consulting. I just kept telling her she had to go to irs.gov and read about self-employment, but to be sure and read the notary blurb in Pub 17 as well.

(You may want to read the above-mentioned notary comments if you are unfamiliar with doing income tax as a self-employed notary.)

Reply by Calnotary on 12/13/05 9:02am
Msg #82125

Also beware of unethical SS that it will report more than...

really earned so they will pay less taxes.

Reply by Brian_MA on 12/13/05 9:05am
Msg #82127

Thanks for the info, the $600.00 1099 was something i had forgotten about.

I see one of those snobby queen bee notaries didnt think my question was sophistocated enough. Well EXCUUUUUSSSSE ME!

Reply by CarolynCO on 12/13/05 9:11am
Msg #82128

Don't let the $600 fool you. You MUST report everything regardless if you did/didn't receive a 1099.

Reply by NM_CO on 12/13/05 9:18am
Msg #82130

Exactly Carolyn. There's so many answers to a question. That's why I love my $350 per year CPA who does it all. I get so confused and I'm not a CPA nor do I want to be. $350 bucks a year is worth it to me to not have any errors.

Reply by SarahBeth_CA on 12/13/05 11:01am
Msg #82171

Brian, what is with your snotty comment? That was totally uncalled for. Nobody gave you a snobby answer. You got great information. In fact I'm sure the information given will help many 1st year notaries. Don't you realize that asking a question opens up topical discussion. Not everything posted is directed straight to you. What an ingrate.

Reply by PAW_Fl on 12/13/05 11:03am
Msg #82172

You may or may not get a 1099 (that's what you get as an independent contractor) from your clients. It doesn't make any difference to the IRS whether on not you get one. You MUST, by law, report ALL your income on your tax return, whether or not you get a 1099, W-2, or substitute forms. Income is income.

Reply by cmd_NH on 12/13/05 11:24am
Msg #82178

Don't forget Notary Fees (max. allowable by your state) are included in Gross Income on Schedule C, but excluded from Self Employment Tax.

Reply by Brian_MA on 12/13/05 12:54pm
Msg #82212

I thought all the info that was given was fantastic, and i even said that in my response, i just didnt like the comment by PE that somehow i should have prepared a business plan before i posted a question like that. No hard feelings were intended, except about that...