Posted by John_NorCal on 12/17/08 11:04pm
Msg #272258

Cal Notary Re: Msg #272103

The answer is no. Notary income is only exempt from SE taxes, it must be counted when determining EIC eligibility.

Reply by Calnotary on 12/18/08 9:15am
Msg #272284

Thank you so much John, I tried to reply to your private message but I wasn't able to. But I want to thank you for your quick and expert respond!

Reply by parkerc/ME on 12/18/08 9:42am
Msg #272293

I think we need clarification of the definition of "Notary Fees". The way I understand it, the fee you charge for the actual "notarial" act itself (checking ID, witnessing signature, filling out your notary statement, and signing/sealing) is the only part that is exempt from SE tax. Some states have set a maximum that a notary can charge per signature/document and I understand that that part is the only part that is exempt from SE tax. Other fees...e-doc printing, fax-backs, mileage . .that make up the rest of the SA fee would be subject to SE tax. I'm not an accountant, but that is my understanding and the way I am reporting my income.

Reply by parkerc/ME on 12/18/08 9:48am
Msg #272297

Rereading John's post, looks like whether or not Notary fees are exempt from SE is moot if they are to be included in EIC. So my post veered a bit off track. Sorry.

Reply by PAW on 12/18/08 11:53am
Msg #272319

Irrespective of EIC, you are correct in that only the "notary" part can be excluded from SE tax. (The "allowable" fee charged for performing a notarization, as defined by state law.)