Posted by reba on 3/6/13 8:21am
Msg #459464
Tax Time as a Mobile Notary
It is tax time and would like some guidance. I was trying to explain to a tax person the concept that as a mobile notary, we are not taxed (as income) on the price ($2 in NY) of each notarization, but on the remaining charge aka mobile fee, travel charge, etc. Does anyone know if there any formal document/statute that I could show to validate this statement? If I have stated this incorrectly, also please advise.
Thank you
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Reply by CopperheadVA on 3/6/13 8:25am
Msg #459465
I don't think that's true. My understanding is that we
can claim the total notary fees (so $2 per notarization for you) as exempt from self employment taxes, but that income is still subject to income taxes. But for a definitive answer, let's see what a tax pro on the board has to say.
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Reply by ToniK on 3/6/13 8:28am
Msg #459466
Directly from IRS site:
Notary public. Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). These payments are not subject to self-employment tax. See the separate instructions for Schedule SE (Form 1040) for details.
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Reply by John Tennant on 3/6/13 10:26am
Msg #459504
All income is reported on schedule "c". This includes notarization fees. The net profit on schedule 'C" is taxable as income. Notarization fees are shown on the SE and are only exempt from self-employment tax.
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Reply by Deborah Breedlove on 3/6/13 10:26am
Msg #459506
The actual notarization fees are only exempt from self-employment tax. They are not exempt from income tax.
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Reply by sueharke on 3/6/13 1:09pm
Msg #459528
I am responding as a CPA, not a notary (I do both). Find yourself a tax preparer, a CPA or Enrolled Agent, who understands Federal tax law and the tax law. Sounds like you picked the wrong tax person. It is cheaper to do it right the first time, than the cost to file an amended return. Also, because of various economic issues, the time to get money back from the IRS using an amended return is taking longer.
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Reply by Buddy Young on 3/6/13 5:02pm
Msg #459592
IRS instructions, schedule SE page 4 middle of the page
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Reply by sueharke on 3/6/13 6:52pm
Msg #459620
Good reply.
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