Posted by thnotary_NY on 2/10/07 8:53am
Msg #175065

Tax and Drake

Is there anyone using Drake tax software.? I can't seem to find how to get the exempt figure on to the SE form. I switched over this year and it's been one thing after another. I've got the "Exempt Notary" but not the correct amount. The KB is of no help. Answer here to help others or send an e-mail. Thank You

Reply by WDMD on 2/10/07 9:00am
Msg #175066

Enter notary income on sch c, then click on the "F" drop down box at the top and click on "n" so that the notary income will show exempt on sch se.

Reply by thnotary_NY on 2/10/07 10:05am
Msg #175075

Thank you, I got that far (F and N) but the Income you speak of is Total Income which includes Travel Fees. What I'm looking to do is subtract the Notarial fees on the SE. What shows up is not what I put there but what the program put there, which is incorrect. How would the program know how many (how much) I did if I don't put it there, being that there is no other place for it.

Reply by WDMD on 2/10/07 10:23am
Msg #175077

If you are looking to back out notary fees from a sch c that includes other fees or deductions (not sure I am following you) there is a override screen for schedule SE if you go to the adjustment tab, at the top there is a SE adjustment screen. I do 2 schedule C's, 1 for signing agent fees and deductions, and 1 for just notary fees.

Reply by thnotary_NY on 2/10/07 10:39am
Msg #175083

On the Sch C, you enter Gross Income, that includes All income. You need to adjust or add the Exempt Notary fees on the SE. I'm not able to do that on that line for some reason. The adjustment screen, if you look at the HELP, says the adjustment (other SE income) will go to line 2 of the SE not line 3, where the "EXEMPT NOTARY" is.

Reply by WDMD on 2/10/07 11:40am
Msg #175098

"On the Sch C, you enter Gross Income, that includes All income. You need to adjust or add the Exempt Notary fees on the SE."


Thats why I do 2 Sch C's. To include all income on the 1040. 1 Sch C for signing agent fees and deductions, then another Sch C showing SE exempt notary income. Both Sch C's show as income on the 1040.

Reply by thnotary_NY on 2/10/07 12:28pm
Msg #175103

That's what I'm trying to get at, How do you make tax exempt fees show on the SE on line 3.?
I think we're getting close. lol

Reply by thnotary_NY on 2/10/07 12:29pm
Msg #175104

You mean, we're the only ones using Drake.?????

Reply by WDMD on 2/10/07 6:39pm
Msg #175148

I have not done my return yet for this year. But last year this is what I did. I had 1 schedule C showing my fees for the signing agent part of my business. I put in my gross earnings from signings less my statutory fees for notarizations. I did not code this schedule C with the "n". All of this income after deductions was subject to self employment tax. Next I created another schedule C showing my statutory fees for notarizations on the gross earnings line. This schedule C I did code with the "n" so these earnings would be exempt from self employment tax. When I viewed the return it did show the exempt fees on line 3 of schedule SE. I tried doing 2 schedule C's like I did last year on a test return in this years program and it showed the same.

Reply by thnotary_NY on 2/11/07 11:22am
Msg #175212

Ok, now your talking. I'm doing mine and if I don't get some answer form Drake then that's what I'll do. I really think this is a programing job that Drake needs to fix. You shouldn't have to do 2 Cs when 1 will do. Thanks so much for hanging in with me. I'm getting ready to be in Balt. next week. If/when I hear back from Drake I'll let you know.