Posted by DT on 2/16/07 11:00am
Msg #176006

Need clairification please

This is my first year filing taxes with notary fees. I have read prior posts and want to make sure I am doing this correct so I have a couple questions. AND I noticed mention of notary fees and signing fees. What is the difference?

I only grossed $555.00 and am not claiming any expenses.

I live in North Carolina

1. I understand that I claim it on a Schedule C
2. I understand that I do not claim SE tax

Is this right and is there anything else I need to know?

Any information will be appreciated.... Thank you


Donna

Reply by Jon on 2/16/07 11:29am
Msg #176012

1. Yes, you claim your self-employed income on Sch. C.

2. No, you always have to figure SE tax, based on your SE income.

3. Signing fees are what you earn for doing a signing. Notary fees are what you earn for doing a notarization.

I hope that you will find a tax professional to prepare your taxes. I am assuming that you have income other than the $555 you made from being a SA.

Good luck!

Reply by Gerry_VT on 2/16/07 11:36am
Msg #176015

The normal advise is to use a tax professional, but I suppose if you know what you're doing it might be more economical to be conservative and do it yourself. Just remember that what you learn from the tax professional will help you structure your business and your records so you will be well-prepared in 2008.

Did you walk to all your signings? I had to deduct milage for a house renovation, not notary work, and my CPA said I could use records other than a mileage log, such as Home Depot receipts, to prove I had taken certain trips. Maybe it isn't worth the bother to go through your journal and use MapQuest, but it's an option.

Reply by PAW on 2/16/07 11:32am
Msg #176014

Partially correct

Yes, you must claim your $555 gross income.

Only the actual notary public fee is exempt from SE Tax. Of the $555, say that you had $150 in notary fees (calculated by the amount authorized by your state to perform a notarial act, up to but not to exceed the total amount of the assignment), it would be exempt (line 3 Schedule SE) and the SE calculation would be based on the remaining income.

Reply by Kate/CA on 2/16/07 11:53am
Msg #176017

Re: Partially correct

If you claimed your mileage fees alone it might take the gross amount way down depending on the amount of miles you drove. What about the fees you paid to become a notary/NSA. You should really check all the expenses that you have. The first few years I did this, I was in the red. Didn't have to pay any takes on my income.