Posted by JenCA on 6/4/07 5:26pm
Msg #193599

Please don't bite my head off...

Ok, question, and I promised I searched but I didnt find the answer I was looking for. When doing a loan closing of any type and recording the journal entries in your book...what do you put for the fee? Do you leave it blank, because you are getting paid a flat fee, not per signing...?

Once again I promise I searched, and would appreciate feedback. TIA

Reply by Elizabeth Soliday on 6/4/07 5:48pm
Msg #193603

You should keep track of the number of notarizations you perform, but it is not necessary to write the fee. The number is multiplied by the highest fee you may charge in your state and that amount is subtracted from your notary income and should be separated on your taxes.

That is how I do it.

Reply by Terri_CA on 6/4/07 5:55pm
Msg #193609

In CA is is a required element to put in the fee charged for each signature notarized. Notice I said REQUIRED. This is in the handbook. If you want to show "Zero" charged for notarizations, then show "0." But you have to show something. If it is zero then you have no proof for the IRS to show that some of that notary signing fee (or all of it in many cases) is notary fees, and if you can't prove it then you can't reduce your self-employment liability by that amount.

Do not leave the fee space blank in your journal. That would be improperly maintaining your journal in CA.

Terri
CA Notary Exam Instructor

Reply by Gary_CA on 6/4/07 8:15pm
Msg #193621

Terri got it right...

by CA law you have to put something, even if it's a zero.

Notary fees are free from SE Taxes.

So you want to put the number of notarized SIGNATURES (not docs, 2 sigs on one cert = $20) x $10 up to the total amount you are paid.

I've heard some suggest putting in the travel fee too. I think that is a BAD AWFUL idea...that journal is public record and the same law that says you must write down the fee says it can't be over $10.

I put the travel fee on my invoice, but not in my journal, and I charge it to a different income account in my QB.

Reply by Grace Gully on 6/4/07 9:44pm
Msg #193628

Re: Terri got it right...

Good job Terri, I always fill in my fee after the signing is complete.

Reply by Terri_CA on 6/4/07 5:51pm
Msg #193604

You have to put a fee in the journal, whether it's Zero (then you have nothing to use to reduce your self-employment taxes) up to but not more than $10 per signature notarized. Do not put your signing fee. If you do, you could be subject to disciplinary action as you would possibly be indicating that you were charging more than the prescribed fee for notarizations.

Track your total income received separate and apart from your journal. Your journal should only reflect no more than $10 per signature notarized.

Hope that makes sense.

Terri - Lancaster, CA

Reply by JenCA on 6/4/07 6:28pm
Msg #193615

no it makes perfect sense, and I thought that was the correct thing to do, but I just didnt want to do it wrong so I thought I would pick your brains a bit. Thank you so much.

Reply by Glenn Strickler on 6/4/07 5:54pm
Msg #193606

I only enter $10 per signature notarized in my journal regardless of how much I am paid for the signing. It is how I separate my notary income from travel income for income tax purposes (the notary income is not subject to self employment tax. Then once a week or so, I enter everything onto a spreadsheet.









































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Reply by Stamper_WI on 6/4/07 5:55pm
Msg #193608

Put the state allowed fee.The journal is strictly for notorial business. In WI that amount is tax deductable. Its up to you if you want to deduct from your taxes

Reply by JenCA on 6/4/07 6:29pm
Msg #193616

Thank you EVERYONE for your feedback...very helpful!!! n/m

Reply by PAW on 6/4/07 7:38pm
Msg #193618

Just did a search ("individual messages" not topics) for "fees" and "journal" and came up with a long list of posts. Interestingly, there is a thread titled "Fees in Journal" starting with msg #154434 that may be of interest.