Posted by nobhill on 4/12/11 11:35pm
Msg #379572

Deducting Notarizations from Self Employment Taxes

Does anyone know off the top of their head how to separate the notarizations we deduct from our SA income on the 1040 Self Employment Form? I see no way to do it.

Reply by nobhill on 4/12/11 11:47pm
Msg #379574

re: Additional Info

Upon further investigation, it seems the Schedule C is where to report the difference which gets transferred onto the Self Employment Tax form. Still don't know how to deduct my notarization fees though. Hmmmmmm. . .. fun night.

Reply by NewPhoenix on 4/13/11 12:03am
Msg #379575

Deducting Notarizations from Self Employment Taxes

This is what my Tax Attorney does - Schedule SE Line 2: on the dotted line types EXEMPT - NOTARY and then all the way to the right type the amount you feel is exempt. Put your total income from Schedule C in box 2 (don't subtract anything yet). THEN subtract your EXEMPT Amount from the number in box 2 and put that difference in box 3. Continue with the rest of the form. Congratulations! You have just saved yourself 15.3% times Exempt Amount in SS taxes.

Reply by nobhill on 4/13/11 12:12am
Msg #379576

Re: Thank you so much!

That was so helpful New Phoenix, thank you so much! I really appreciate it. What a nice person, very rare these days.

Reply by Roger_OH on 4/13/11 12:40am
Msg #379577

Nobhill, do make sure...

that taking that exemption is something you want to do. There have been many discussions here that, while taking the deduction looks good in the short term, it may affect your social security earnings or eligibility down the road. Just make sure you consider the whole picture of what's best for you.

Reply by nobhill on 4/13/11 12:47am
Msg #379578

Re: Nobhill, do make sure...

Thanks for the heads up Roger, but I don't imagine Social Security will be available by the time I qualify. I don't even believe the dollar will be our currency in the next few years. Thanks for the info.

Reply by Susan Fischer on 4/13/11 1:46am
Msg #379579

Good point, Roger. That's why the system works; give a

little, get a lot. At 64, I love my Social Security; I can still work some, so I continue to pay into my account because at 70, my late husband's stops, and mine kicks in. Not to mention the SSI-building and therefore available if I get disabled by some uninsured/judgment-proof circumstance.

(Social Security has worked so well for so long, I can't imagine the majority of Americans, the folks who've lost pensions, homes, businesses, savings, everything - but ~know~ that their life-line to basic survival in Old Age is safe and growing with each slight contribution, so I can't imagine the 'Kill [privatize] Social Security quest of the Right is going to pay off with Seniors and almost-Seniors. jmho.)

Reply by HisHughness on 4/13/11 8:52am
Msg #379591

Social Security checks are most welcome

However, many of my acquaintances have suggested that a better form of social security for me would be a more effective deodorant.

Reply by Susan Fischer on 4/13/11 12:50pm
Msg #379618

Been meaning to talk to you about that, Hugh... ;) n/m

Reply by James Dawson on 4/13/11 10:17am
Msg #379598

Re: Good point, Roger. That's why the system works; give a

I'm going on five years now, it takes the edge off for sure.

Reply by Shoshana/AZ on 4/13/11 8:06am
Msg #379588

The Senior lobby is very influential.

I can't imagine SS going away without a fight! I am looking forward to getting mine in 2 years!

Reply by parkerc/ME on 4/13/11 1:42pm
Msg #379633

I'd also circle that whole "Exempt" note that you write in. Got a letter from IRS about a mistake on my SE form. Come to find out, they had missed that whole notation.

Reply by MW/VA on 4/13/11 8:47am
Msg #379589

Also see msg. 378499 n/m