Posted by Laura Upton on 3/15/06 8:45pm
Msg #105470

are notaries Tax exempt?

am trying to get taxes done for 2005. I am seeing that income for Notaries is tax exempt. I am not sure about this, and dont want to be audited by the IRS (I have nothing to hide....but still dont want to go thru the experience! lol!) so i am asking anyone for information or clarification so that i dont file incorrectly! thank you...laura

Reply by Laura Upton on 3/15/06 8:46pm
Msg #105472

form 1040 page 2 line 58 is what i am referring to. thanks. laura

Reply by Shane_OH on 3/15/06 8:48pm
Msg #105473

There are several threads about this, just do a search for "Taxes"

However, the Notarizations are Tax Exempt, but that doesn't mean the whole fee for the signing is Tax Exempt.

Quick Fictional Example:

1 Signing for a Fee of $10, you only notarize 1 page in the package.
Your state allows you to charge $2 for this type of notarization.
Take your $10 fee subtract the $2 notarization....and $8 is Taxable.

Hope this helps!

Reply by Laura Upton on 3/15/06 8:49pm
Msg #105475

ok! i get it! thank you, that completely clarifies my question. Laura

Reply by Cherilyn_CO on 3/15/06 9:20pm
Msg #105485

That is NOT TRUE...

Income Tax and Self Employment Tax are two different things all together. And the information you just gave is exactly why people keep asking this over and over again. It is incorrect All income is taxable for INCOME TAX. Notary Income is not subject to SELF EMPLOYMENT TAX. Self Employment tax is our portion of social security and medicare that employers normally pay for employees.

If you have a net income (ALL revenue-All expenses) of say, $1000.00. You can deduct your notary income from that in order to come up with your SE tax. However, the $1000.00 is still taxable for income tax.

Clear as mud?

Reply by Shane_OH on 3/15/06 9:27pm
Msg #105487

Re: That is NOT TRUE...

I thought that is what she was asking, was the self-employment tax.

It would appear I mis-spoke... I stand corrected.

Reply by Cherilyn_CO on 3/15/06 9:40pm
Msg #105495

She may have been...

and I didn't pull out the tax form to see the line she was talking about. But I'm fearful of all of the people reading this board that will take that as gospel and not claim their income.

Guess it's just the Accountant in me :-)

Reply by Les_CO on 3/15/06 9:12pm
Msg #105482

NO!

Reply by Laura Upton on 3/15/06 9:17pm
Msg #105484

got it! thank you! i am so glad i talked with you and fixed the paperwork before i filed. thanks! laura

Reply by Jon on 3/15/06 10:11pm
Msg #105506

Re: are notaries Tax exempt?...NO

I suggest you get a competent tax professional to help you with your tax questions. Trusting this type of info from a message board is not the wisest thing to do.