Posted by sasnak on 3/8/05 10:47pm
Msg #24466

how do we report earnings?

I haven't received any tax information reporting earnings from any companies that I did signings for in 2004? Do they not send them out? Do we not have to report earnings? What's up?

Reply by Lori/CA on 3/8/05 10:54pm
Msg #24468

Sasnak,

YES you must claim as income. They are not required by law to send a 1099 if you earned under $600, but you must claim either way.

It is up to you to know your bookkeeping and what is subject to tax and not subject to SE tax. There has been lots of posts over the last two months, try a search to find the information you need.

Good Luck! Lori

Reply by sasnak on 3/8/05 10:57pm
Msg #24470

what would I put in for a search, earnings?

Reply by John_NY on 3/8/05 11:12pm
Msg #24476

As I mentioned in a previous post, get a hold of Quicken Premier Home and Business software, it helps you with your billing, receipts, expenses, etc, at the end of the year it even transfers all of your entries into Schedule C. The other program I use as a back up for vehicle expense claims is Microsoft Streetss & Trips, I save the trip file by the date and place of the closing which gives me the actual round trip mileage, I have this as back up for my vehicle mileage in Quicken. Things like this can save you many headaches at tax time.

Reply by Joan Bergstrom on 3/9/05 1:24am
Msg #24485

Quicken Premier Home & Business is also great to create invoices.
If you can afford this program it is great; but if you can't afford this software and your new to the Notary business obviously a pencil and a piece of paper also work.

When you can afford it the Quicken Premier Home & Business is great!!

Reply by Ted_MI on 3/9/05 7:09am
Msg #24489

Re: No, search for taxes n/m

Reply by Lori/CA on 3/9/05 9:39am
Msg #24506

Check under taxes, 1099, Self-employment tax. Or best go back to the post from the beginning of the year and check the subject area's. You may find quite a bit more information which can be VALUABLE!

Hope this helps. Lori

Reply by Jon on 3/9/05 11:41am
Msg #24532

I recommend that you find a tax professional that is familiar with self-employed notaries. If the tax professional can't help you with what you need, find a new one.

BTW, you use your receivables records to report earnings.

Reply by Art_MD on 3/9/05 1:44pm
Msg #24563

I beg to disagree Jon re: receivables.
If you use standard accounting - cash basis, you report income, not billings. Work done in 2004 for which you were not paid in 2004, is not reported as income in 2004.

I would guess that 98% of NSAs are cash basis tax payers.

Art

Reply by John_NY on 3/9/05 2:06pm
Msg #24571

By the way, the IRS recommends using standard accounting - cash basis for small business like ours, it is a lot simpler unless you want to get into equipment depreciation, etc.
In standard accounting, say you purchase a printer, you can deduct the entire value in 2005, if you go the other way, you have to find out all kinds of variables as to how to come up with a yearly depreciation.

Reply by Jon on 3/9/05 3:09pm
Msg #24588

You are right Art, I should have said income received. I should double check my posts as thoroughly as I double check my docs.