Posted by John Bouchard on 3/3/13 6:45pm
Msg #459052

Self Employment Tax - Adjustment from Notary Income

My self employment tax is at -0- once I adjust for income from notarizations. Does anyone else have a -0- liability for self employment taxes?

Reply by Art_MD on 3/3/13 7:15pm
Msg #459054

This is close to impossible. Note I said close. A lot depends on your state.
If your max notary fee is $10 then you could approach $0. States where
Max is less than $10 it not possible.
I e:: signing for 120 with 15 notarizations you could charge $10 for
12 notarizations resulting in 120 being exempt.
However, there is no carryover. If you next job is $120 with 9
Notarizations, only 90 is exempt. You can't carryover the 3 extras on
the first. So, to get to $0, on EVERY job, the notary fee x notarizations
would have to equal or exceed job fee
If you do general notary work you maybe charged $40 for going and doing 1 act
$30 would be subject to tax.

Reply by John Bouchard on 3/3/13 7:50pm
Msg #459056

Your general tax liabliity isn't decreasee, just your self employment tax. It can be zero

Reply by sueharke on 3/3/13 8:28pm
Msg #459057

I chose to pay the SE tax because of the potential benefits from Social security. Do you want to have disability payments if you get sick and cannot work? Then zero SE tax does not help. Do you have private disability insurance to cover you in case you can't work? Then zero SE tax does not hurt you. Without more information about you and why you made this decision, I can't answer the question.

Reply by John Tennant on 3/3/13 9:20pm
Msg #459060

Unlike Sue, I take the maximum, per signing, to my SE tax. Why, I am 75 and already get the maximum from social security. Yes, I have "0" notary income that is taxed after expenses. However, Sue is totally right. If you are much younger you can hurt yourself if you get disabled, or for your actual social security payments. The choice is yours.

Reply by Susan Fischer on 3/3/13 11:33pm
Msg #459062

Pearls of Wisdom from Sue, and John Tennant. Think

long-term, plan long-term, benefit long-term. I paid the max until I retired, and will get the max at 70 when my widow's benefit ends.

As John T said, the choice is yours. I'd add: Don't cut off your nose to spite your face in making such long-term choices.

Reply by Buddy Young on 3/3/13 11:25pm
Msg #459061

My self emplyment tax is also at "0". I already draw social security and have no interest in paying more into it.

Reply by MW/VA on 3/4/13 8:22am
Msg #459069

Ditto. I did get a scare last year when it was posted on

the forum about the record-keeping involved. IMO that still only takes into acct. the gross, and we pay SE on net profit/loss.