Posted by NewPhoenix on 4/16/11 7:50am
Msg #380040

Deducting Notary Services Exempt from Social Security Taxes

Someone asked me privately what I do to determine the amount to deduct for Social (in)Security taxes. This is not legal or tax advice, my reply was however...

Here is what I do - As each signing is completed and before I leave the table I review all the documents to make SURE I didn't miss a signature. As I do that I count the number of pages I Notarized and write down that number on the Signing Confirmation. When I get home I enter that number in my signing scheduling Worksheet (Excel).

At the the end of the year I add up (SUM) that column to get the number of Notarizations I did for the year. Multiply that times $2 (state max allowed in Ohio) and claim that THAT portion of the total I was paid was for Notary Services and therefore exempt from SS taxes! That is hundreds of dollars I can put in my own ROTH IRA instead.

For that matter I also write down my mileage (start and end) and the UPS/Fed Ex Tracking number on the Signing Confirmation too. I keep that and a copy of the first page of the HUD in a file for every signing. Then I enter the mileage (again, start and end) to get the difference in a column in my worksheet and SUM that up at the end of the year to get my total miles traveled for my Notary business. That is by far my BIGGEST deduction and is easy to calculate this way.

I hope that helps!

Reply by Roger_OH on 4/16/11 12:23pm
Msg #380065

Discussed before, but make certain...

that the SS exemption is something you really want to take, as it will affect your SS earnings in the future, AND could have an impact on your disability benefits should you ever need them.

People tend to think of Social Security as something just for senior citizens, but it also has many implications for people of any age. Disability, survivors, etc.

While the SS exemption looks good for a short term financial gain, just ensure you consider the big picture and what is best for your overall situation.