Posted by Hugh Nations Signing Agents of Austin on 4/17/12 1:57pm
Msg #418106

I am chagrinned to have to ask this...

...but for the first time this year, I've decided to claim my notary fees deduction on my SE tax. The problem is, I can't find anywhere on either Schedule SE or Schedule C where that comes off. Is there another form I need to fill out?

And yeah, I have waited this late to do my taxes. If I don't get that answer, it's going to cost me much dinero.

Reply by JENNY/TX on 4/17/12 2:03pm
Msg #418107

Hugh, I use Turbo Tax and their program put this in as a line item on the Earned Income Credit form.

Lord knows I am not an accountant, and don't want to do taxes at all, but maybe this info will help.

Jenny

Reply by Philip Johnson on 4/17/12 2:35pm
Msg #418109

Not funding your retirement account?

http://www.irs.gov/pub/irs-pdf/i1040sse.pdf

Page 4 will tell you how, also you could break down spend $20.00, buy the H&R block tax software and it will do it for you. You then can claim the $20.00 next year as an expense, on the last day to file.

Reply by bagger on 4/17/12 2:49pm
Msg #418110

Re: Not funding your retirement account?

Schedule SE Page 2 Line 3 - Write Exempt _Notary
If you wish, I will fax it to you.

Reply by Hugh Nations Signing Agents of Austin on 4/17/12 5:05pm
Msg #418115

Thanks, bagger. Philip covered it for me. n/m

Reply by Hugh Nations Signing Agents of Austin on 4/17/12 3:00pm
Msg #418111

Re: Not funding your retirement account?

Thanks, Philip. That saved me about $600. I owe you lunch, regardless of what the guys down at the Poodle Dog Lounge say.

Reply by Karla/WA on 4/17/12 4:26pm
Msg #418112

Please elaborate on your fees you're planning on deducting....inquiring minds want to know!

My taxes are already filed.

Reply by Karla/WA on 4/17/12 4:27pm
Msg #418113

....and, The Poodle Dog....what an institution! n/m

Reply by Hugh Nations Signing Agents of Austin on 4/17/12 5:05pm
Msg #418114

You can exempt from your SE tax...

...the state-mandated fee for each notarization.

$100 closing
6 notarizations
$36 can be exempted from the SE tax; only the SE tax, not the income tax.

I have never used the exemption. Never really needed it; paid some extra taxes, but regarded that as insurance if I ever get audited. This year, after seeing what some billionaires are paying, I used every exemption I have.

And right now I'm headed to the Poodle Dog Lounge to see how much I can reduce the $600+ I saved.

Reply by ikando on 4/17/12 5:21pm
Msg #418117

Re: You can exempt from your SE tax...

Hugh, my Enrolled Agent tax accountant husband says, you do not use Schedule C or SE. You put the amount you're allowed to charge for notarizing (stamps) on Line 21 of the 1040--Other Income. This makes it not subject to self-employment tax, i.e. exempt.

He's been doing my taxes for many years ;-)

Reply by Philip Johnson on 4/17/12 6:21pm
Msg #418121

You might have big guy look at the IRS instructions.

That's not IAW SE instructions, which can be found above in my first post to Hugh.

Reply by Philip Johnson on 4/17/12 6:16pm
Msg #418120

$36.00 paltry dollars in Texas, $60.00 here in WA. n/m

Reply by Cody on 4/17/12 6:24pm
Msg #418122

Re: $36.00 paltry dollars in Texas, $60.00 here in WA.

$12 in az...

Reply by Luckydog on 4/17/12 6:56pm
Msg #418123

Re: $36.00 paltry dollars in Texas, $60.00 here in WA.

$60.00 in Florida...$10.00 per signature

Reply by jba/fl on 4/17/12 7:02pm
Msg #418126

Re: $36.00 paltry dollars in Texas, $60.00 here in WA.

No, not per signature, per stamp. If you want to stretch it to per signature, then Mr. gets his ack and Mrs. gets hers - separate. Then, $120 if two signers.

Reply by TacomaBoy on 4/17/12 9:04pm
Msg #418134

Washington's $10 Statutory Notary Limit?

I've been claiming notary fees as exempt in my taxes for years. However, it occurred to me that might not be correct. Why? Well, we are all being paid IRS 1099 - Other FEE income by TC & SA clients, not NOTARY FEES aren't we? I'm just asking.

Reply by Linda_H/FL on 4/18/12 4:50am
Msg #418144

We may all be paid "Other Fee" income, however

but that's mostly because (a) our fee is all-inclusive; and (b) there's no IRS form for reporting notary income.

It's presumed that the fee you quote, and hopefully are paid, includes the notarizations you perform - and my record-keeping breaks that down to show total fee and amount attributable to notarizations/balance to "other".

JMHO

Reply by Luckydog on 4/18/12 2:54pm
Msg #418189

Re: $36.00 paltry dollars in Texas, $60.00 here in WA.

I was taught in class it is per signature, not stamp. If (2) people sign one document in Florida, it is a $20.00 deduction on SE taxes or $20.00 notary fee if you want to charge the borrower. I deduct per signature, not by stamp.

Reply by bagger on 4/17/12 8:12pm
Msg #418128

PEOPLE, that is $36 per $100 closing

times 100 closings is $3600!
Paltry? NOT
And when you are Hugh's (and my) age, we don't need to contribute to SS anymore, we are drawing SS.

Reply by Barb25 on 4/17/12 8:51pm
Msg #418131

Re: PEOPLE, that is $36 per $100 closing

Most of my closing have at least 5 if not more title docs that are notarized.... before you even get to the lender package. So if you don't need to build up SS... it is a great thing here in FL. In NY was not so good. $2. per signature.

Reply by PegiT_MN on 4/17/12 10:09pm
Msg #418138

Thank God I filed an extension.....

.....can someone tell me what the fee is for Minnesota? Is it what we can charge per notarization......50 cents?

Reply by JPH13/MO on 4/18/12 9:36am
Msg #418153

MAX YOU CAN WRITE OFF

It depends on your state law. For Missouri I am allowed to charge $2 (woo hoo) per notarized signature. So if I had 2 signers and 5 docs to notarize that would be $10.

For those of you who can charge higher fees, PLEASE remember you can't write off more than you got paid. So if you got paid $100 for a signing and you notarized more than $100, you can still only write off the $100 you got for that signing.

You also need to have good records that show how much of the fee can go towards notarizations. I use an Excel doc that shows how many notarized docs in one column and how many signatures notarized in the next. Since name aff is usually a separate doc for each borrower, it shows something like 6 docs and 10 signatures, for example, if there were 2 borrowers. 4 docs they both signed and one each of name aff signed and all notarized.

Reply by BrendaTx on 4/18/12 5:15am
Msg #418145

One.

That's is the number of times that I have used this.

I am sure Hugh & Bagger have perfect records, but if you don't...don't use it.

Reply by Hugh Nations Signing Agents of Austin on 4/18/12 10:49am
Msg #418156

The MoJo is great for this.

Count up the notarizations after the signing, record the number in the "Fees" slot on the left hand side. Quick and simple enough that even those of us who are senility challenged can do it.

Reply by Frank/NC on 4/18/12 12:18pm
Msg #418171

What are you worried about? Use the stimulus money your frien Obama gave you.

Reply by Hugh Nations Signing Agents of Austin on 4/18/12 1:09pm
Msg #418177

This is a political posting.

It belongs in Just Politics, which was established just for such matters.