Posted by andreas_wa on 10/14/05 1:05pm
Msg #70519

WA B&O Tax Question

Hi WA notaries!

As far as I know the state set fees for notary acts are not taxable for federal income tax purposes, but are we required to pay B&O tax on them?

Reply by Mindy_WA on 10/14/05 1:52pm
Msg #70525

Andreas,
Where are you in WA? Yes, you do have to FILE B&O tax. I do every quarter. You will probably not have to PAY B&O tax because you will likely not make enough. I file my income on line 13 of the form. Then multiply by .015. If that number is not over $106??, I think. That is a tax credit and you will not have to pay anything. You can call the Department of revenue at 1-800-647-7706. They will walk you through filing.

Reply by andreas_wa on 10/14/05 1:57pm
Msg #70526

Mindy -

I'm in Vancouver. Trying to get my ducks in a row before I start out. I was just trying to figure out if the $5/act were exempt or not as the DOR website is mute on this subject. Thanks for your help.

Reply by Mindy_WA on 10/14/05 2:05pm
Msg #70529

Yeah, good question. I have wondered that too. I know that *all income* is what I use to file the B&O tax. So far, we have not had to pay and we have been in business full time since January. I haven't filed the B&O tax for this quarter but we may have to pay some...a couple of dollars?? I don't know yet. My husband and I are in Spokane, we both do closings and take as many as come our way. We try not to turn any down. In August, our BIGGEST month yet, we did 63 closings. That may put us over the top for the B&O tax.

Reply by Mindy_WA on 10/14/05 2:00pm
Msg #70527

I suppose you could make enough, in the quarter. You would have to bring in 7,000.00 plus in the quarter to have to pay B&O tax. That's over 2333.33 each month.

Reply by Mindy_WA on 10/14/05 2:21pm
Msg #70532

I just called the DOR, they said that all income is what you use to file. Nothing is exempt from income for services.