Posted by Do H. Kim on 3/8/06 12:24pm
Msg #103277

CALIFORNIA...i CAN'T FIND A STRAIGHT ANSWER...

DO YOU HAVE TO CLAIM YOUR SIGNING FEES IN YOUR INCOME TAX? I HAVE DONE 8 SIGNINGS SINCE DECEMBER AND I WAS WONDERING IF I HAVE TO SHOW ON MY INCOME TAX OR NOT, THE NOTARY FEES I CHARGED FOR THE SIGNINGS.


ANYHELP PLEASE
[e-mail address]

Reply by newlysmomva on 3/8/06 12:43pm
Msg #103286

Yes you do..it was income.

Reply by Stephanie_CA on 3/8/06 12:55pm
Msg #103295

Re: CALIFORNIA...i CAN'T FIND A STRAIGHT ANSWER...Example

Total Signing Fee:

120.00

Number of notarizations:

8

$120.00 must be claimed as income.
$40.00 must be declared under SE
$80.0 (Value of notarizations) not taxable.

Reply by FlaMac on 3/8/06 2:12pm
Msg #103312

Go to www.irs.gov, click on "businesses" at the top and...

when you get to that page, look to the upper left under " Business Topics". You will find all the info you need including the forms for filing. Good Luck

Reply by Ninna_La on 3/8/06 3:26pm
Msg #103333

If I'm interpreting your post correctly, I think you may be asking if you have to "claim" the fees on your 2005 return? If you are filing on a cash accrual basis, then you would claim them in the year that you actually received the money.

For example, if you received the fees in 2006, you would claim them in 2006, even though you completed the assignment in 2005. If you received the fees in 2005, then you would claim them in 2005.

Reply by cmd_NH on 3/8/06 5:10pm
Msg #103381

Re: Just a little correction Ninna...to clarify.

"If you are filing on a cash accrual basis,"

You combined the two Basis' together in your explanation.

Cash basis...income is recorded when it is received (Job completed 2005, payment received in 2006. This would be included in 2006 income)

Accrual basis...income is recorded when the work was completed, regardless of when you receive payment.(Job was completed 2005, payment received in 2006. This would be included in 2005 income.

All income for the year is recorded on Schedule C. The amount for the notary fees is only exempt from Self Employment tax.