Posted by PaSigningAge on 8/26/11 11:19am
Msg #395097

EIN in Pennsylvania

Is there anyone out there from Pa that has gotten an EIN. I tried to call Harrisburg to see if they would recommend it. But no one really had an idea.

Reply by HARRY_PA on 8/26/11 11:31am
Msg #395101


Sure, I have one for 23 years. It's federal, why call Harrisburg?

Harry

Reply by PaSigningAge on 8/26/11 11:34am
Msg #395105

Also I in another forum that if you work a job where you pay taxes that at the end of the year you don't have to pay so many taxes to your Notary work. Any ideas?

Reply by HARRY_PA on 8/26/11 11:36am
Msg #395106

Time to consult an accountant n/m

Reply by PaSigningAge on 8/26/11 11:40am
Msg #395108

Re: Time to consult an accountant

Actually all accountants I have talked to don't know to much about Notary taxes. Sooooo, I am lost then. I called the IRS and asked if Notary has to pay Federal taxes and was told to put exempt on line # 52 or whatever it is. SO I am really confused!

Reply by taxpro on 8/26/11 11:45am
Msg #395109

I recommend you get a federal tax ID# to avoid disclosing your SSN on Form W-9.

Notary fees are taxable for income tax purposes, but are exempt from self-employment tax, which is social security for self-employed individuals. Note that the exemption only applies to notary fees, not the extra amount for travel, printing, etc. Count the number of notarizations you do in a loan signing, and multiply that by your state's maximum notary fee. If your state doesn't specify a max fee, it's up to you to determine a reasonable notarization fee. Keep track of that amount separately for the SE tax exemption. Then prorate your net income accordingly.

Some notaries don't claim the exemption because they need to build their earnings record for their social security. If you work another job, you probably already have that covered.

Reply by PaSigningAge on 8/26/11 12:02pm
Msg #395115

OK , thanks.

Reply by PaSigningAge on 8/26/11 12:05pm
Msg #395117

Ok,

Say I have $100.00 standard fee for Loan documents, I charge $5.00 to mail the paper work back to the company, 0.30cents to print the paper work. I only have to pay federal taxes on the $5.00 to mail and 0.30 cents to Print? Or am I understanding this wrong?

Reply by Roger_OH on 8/26/11 12:24pm
Msg #395121

ALL your notary income is taxable for both federal and state purposes (if you have state income tax). You have to file a Schedule C form for you notary business with your tax return.

The only exemption is for SELF-EMPLOYMENT taxes, if you choose to take it.

Get an EIN, and use it for all your business dealings - don't give out your SSN to companies.

Reply by taxpro on 8/26/11 12:27pm
Msg #395124

You're understanding it wrong.

If your fee is $100.00 and your total expenses are $5.30, your net income of $94.70 is taxable for purposes of regular federal and state income taxes.

If your fee includes travel, printing, etc, you must allocate the expenses amongst the two types of income before you compute SE tax.

Reply by Rebecca Graham on 8/26/11 12:13pm
Msg #395119

I am not in PA but I am a former tax consultant. EIN is Federal. The same as you should have a seperate bank account for your business earnings so you should have an EIN. You use the EIN to open your bank account. Can be attained online at IRS.gov

Reply by PaSigningAge on 8/26/11 12:24pm
Msg #395122

I was told I don't need either of these things to be a Notary. So, I haven't established either. I only have my personal account.

Reply by desktopfull on 8/26/11 12:28pm
Msg #395125

Please talk to an accountant, lawyer, on how to set up

a business and how to run that business. Please do the research or seeks advice from the aforementioned before you get yourself into trouble with the IRS. We are not allowed to give legal advice.

Reply by PaSigningAge on 8/26/11 12:37pm
Msg #395128

Re: Please talk to an accountant, lawyer, on how to set up

you've been sooo helpful. LOL

Reply by desktopfull on 8/26/11 1:02pm
Msg #395143

Sent you a private message. n/m

Reply by taxpro on 8/26/11 1:39pm
Msg #395152

Re: Please talk to an accountant, lawyer, on how to set up

Actually, desktopfull gave you some excellent advice. This forum cannot possibly fulfill that need. Remember, you get what you pay for, and the advice here is free.

As an Enrolled Agent, I have represented many taxpayers before the IRS when they were being audited. Shockingly enough, in each and every instance, the taxpayer had prepared his/her own return, then came to me in a panic when they got the IRS letter. It always turned out that they had made some kind of obvious mistake on their tax return, which, in turn, caused the IRS to take a closer look. I'm not saying that no one should prepare his/her own tax return, but there is soooo much to know, especially if it's outside the scope of regular W-2 income and a few itemized deductions. You should at least take a tax course if you have anything complex, or use the services of a qualified professional. Your mistakes could cost you hundreds or even thousands of dollars, and you might never realize it. I don't pretend to know everything; I'm still learning more stuff after 25 years of doing this - and I'll never know it all. It's just not possible to know everything with over 16,000 pages of code (depending on who you ask).

But...knock on wood, I have never had a return that I prepared get audited. I'm sure that day will come, but I don't lie awake and worry about it. I just warn my clients that they need to maintain excellent records and keep all their receipts in case they have to substantiate their income and expenses.

Reply by desktopfull on 8/26/11 8:07pm
Msg #395222

Prime example of a rude newbie, ask for help and then

belittle the person for their response. Good luck your going to need it.

Reply by taxpro on 8/26/11 12:29pm
Msg #395126

You don't NEED an EIN to be a notary, but you should have one as a matter of common sense. You should also keep a separate business account, and run all your business income and expenses through that account.

Reply by PaSigningAge on 8/26/11 12:38pm
Msg #395131

Why are you screaming at me? It's says in Rules & Guildelines not to use caps for this reason.. Sorry to bother everyone.

Reply by taxpro on 8/26/11 12:41pm
Msg #395132

Sensitive much?

I was trying to help you, and I certainly wasn't screaming at you. I was emphasizing the difference between "need" and "should". Have a nice day.

Reply by PaSigningAge on 8/26/11 12:42pm
Msg #395135

Re: Sensitive much?

I am very new to this that is all. Sorry.

Reply by HARRY_PA on 8/26/11 12:43pm
Msg #395136

You are not bothering me, but you are incredibly naive or simply dense. Do not take it out the people who are trying to direct you to a professional that may help you. Best of luck.

Harry

Reply by desktopfull on 8/26/11 11:31am
Msg #395102

You get your EIN # from IRS and use it instead of your SS#