Posted by Terrie Gillett on 8/10/08 5:53pm
Msg #259586

CA income tax rules for notary

Hi All,

I have been told that since notaries are "agents of the state," we do not have to pay personal income tax on our $10 notary fees. Does anyone know about this? My understanding is that if we do a $100 loan signing that has 4 notary stamps, $40 is non-taxable, $60 is taxable. Correct or incorrect?

Thanks!
Terrie
Notary San Rafael

Reply by MikeC/NY on 8/10/08 5:58pm
Msg #259587

Are you asking about state or federal tax? n/m

Reply by Roger_OH on 8/10/08 6:46pm
Msg #259593

ALL income must be declared on your Schedule C form. The notary portion of your fees is exempt from SE tax only. Do a search or contact John/NorCal for more detailed info.

Reply by Philip Johnson on 8/10/08 6:59pm
Msg #259594

Here's the federal link as for California, good luck.

http://www.irs.gov/publications/p334/ch10.html

Reply by John_NorCal on 8/10/08 10:12pm
Msg #259608

No, no, no.....

You've been misinformed Terrie. California has no provisions for excusing notary income from taxes. As a notary you do not have to pay self employment income tax on notary fees. So if you charge $10.00 for a signature you will pay personal income tax on that to the IRS and to the state, but you will not pay self employment tax.

Reply by CF on 8/11/08 7:14am
Msg #259621

Just to expand Self Employment tax is what you

pay in to Social Security. If you work for an employer this is paid in on your behalf. If you work for youself- you have to pay in to the Social Security system. Most other self employed business' have to pay this for themselves. There are very few exceptions to this rule and notaries fall under the category. So if you want your SS fund to grow- then you need to pay in to it. You should talk to an accountant about this and find out what your options are to pay or not to pay. All income taxes apply to your profit (earnings minus expenses) - federal and state.

Just a disclaimer...I am not an accoutant...not a legal professional blah blah blah!

Reply by John_NorCal on 8/11/08 10:25am
Msg #259641

The point is........

Notary Public income is exempt ONLY from self employment tax, nothing else. Income taxes are the pound of flesh wanted by the IRS and various state taxing authorities.

John The Tax Guy

Reply by WDMD on 8/11/08 10:35am
Msg #259644

Re: The point is........

"John The Tax Guy"

You forgot the www. and .com LOL

Reply by BrendaTx on 8/11/08 11:15am
Msg #259652

Re: The point is........

**You forgot the www. and .com LOL**

www.johnthetaxguy.com

IS

NOT

like our

resident

signing service(s) who think/s YOU
are too stupid
to understand
google
ranking
and hence use
their link
(or links which flip-over to their site)
on this site
constantly.

Reply by WDMD on 8/11/08 11:20am
Msg #259653

Re: The point is........

I know he is not like that Brenda. Sorry if it appeared that way.

Reply by BrendaTx on 8/11/08 11:27am
Msg #259654

Nope...it didn't!

Someone will complain that it's advertising...and it's not.

The whining never ceases to amaze me.

Reply by jba/fl on 8/11/08 2:47pm
Msg #259700

Re: Nope...it didn't!

Whiiinnne, whiiinne, whiiinnne...

Oh, sorry - that was a Suzuki going down the street! lol