Posted by Mimi, CA on 1/5/05 10:10pm
Msg #15562

Tax return

This will be my first time doing my income tax as an independent contractor. As a notary, are meals and medical expenses that are not covered by health insurance tax deductible? I would appreciate any suggestions. Thank you.

Reply by Mike/NJ on 1/5/05 11:28pm
Msg #15570

I would suggest seeking an accountant for tax advice. Also checkout the IRS website for help.

Reply by CarolynCO on 1/6/05 9:08pm
Msg #15655

I couldn't agree more. The money for an accountant/cpa is well spent, and tax deductible, too.

Reply by BrendaTX on 1/5/05 11:36pm
Msg #15571

Mimi, Download Pub 17 from the IRS.gov site. It will give you good direction on each of your questions.

Reply by Gregg Amicon on 1/7/05 12:28am
Msg #15667

Hi Mimi,
I do taxes on the side, not a CPA.

You'll be filing a Schedule C unless you've incorporated, remember to reduce your income by the allowable state notarization rate. Meals will probably not be a deduction unless you do overnights. Health costs are deductible IF they total more than 7.5% of your adjusted gross income.

Your most beneficial deduction will be mileage.

Feel free to email me directly as I don't watch this board very frequently.

Gregg Amicon

Reply by PAW Notary Services on 1/7/05 7:06am
Msg #15683

>>> ... remember to reduce your income by the allowable state notarization rate. <<<

Gregg,

Please explain this statement.

All income, notary income INCLUDED, is taxable. You can only take the allowable notary fee exclusion (not a deduction) when calculating the SE (Self Employment) tax. (And only to the amount of the assignment, on a per assignment basis.)

Reply by Mike/NJ on 1/7/05 7:19am
Msg #15685

Gregg,

Meals are deductable, like I said see an accountant for tax advice. Everyone may mean well but seek proffesional help.

Reply by BarbaraB.NC on 1/7/05 9:23am
Msg #15695

Only a CPA who is up to date on your state and federal tax laws can answer those questions. The magic statement is "up to date" Tax laws change on a yearly basis (sometimes more often) The CPA you chose will probably be doing other self-employeed contractors. Please check so you can feel confident about your decision.

Reply by CarolynCO on 1/7/05 9:10pm
Msg #15791

What is the adage when it comes to believing - about reading, hearing and seeing?