Posted by addie on 1/29/07 2:58pm
Msg #173145

taxes

Does anyone remember the exact IRS site that said Notary fess you receive are tax exempt?
It was posted a few months back.
Thanks

Reply by Lisa Prestegard on 1/29/07 3:18pm
Msg #173151

I don't remember the exact site, and am on my way out the door... but if you search IRS Section 1402 (c) (1) on the IRS website, you might have some luck.
Again, this isn't gospel... just my recollection (which is not always perfect!)
www.irs.gov

Reply by PAW on 1/29/07 3:54pm
Msg #173161

From the 2006 Instructions for Schedule SE (Form 1040), pg SE-3, center column, about half way down:

2. Fees received for services performed as a notary public. If you had no other income subject to SE tax, enter Exempt Notary on Form 1040, line 58; do not file Schedule SE. However, if you had other earnings of $400 or more subject to SE tax, enter Exempt Notary and the amount of of your net profit as a notary public from Schedule C or Schedule C-EZ on the dotted line to the left of Schedule SE, line 3. Subtract that amount from the total of lines 1 and 2 and enter the result on line 3.

You can also view the instructions online at http://www.irs.gov/pub/irs-pdf/i1040sse.pdf

Reply by Marsha Risch on 1/29/07 11:02pm
Msg #173231

Thank you for this information.

Reply by Roger_OH on 1/29/07 5:47pm
Msg #173189

Important to remember...

the notary fee portion is exempt from SE tax ONLY, NOT federal state/local taxes. ALL income must be declared.