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LindaH
Florida
1754 Posts |
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crtowles
California
553 Posts |
 Posted - 03/15/2008 : 2:12:44 PM
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You explained that very well Linda!! 
C |
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LindaH
Florida
1754 Posts |
Posted - 03/15/2008 : 06:58:06 AM
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If you do a signing for $100 with 12 notarizations, then your entire $100 is exempt from the Self-employment tax but is fully taxable as income. As far as claiming the $20 loss is concerned, it depends on your accounting method. PAW (Paul Williamson) explained it best on another forum and I'm repeating it here..
"If you use the "cash method" (which most contractors do), you report your income when you receive the cash. That is, money received in 2007 is reported for 2007. Money received in 2008 (even for jobs completed in 2007) are reported in 2008.
If you are using the "accrual method", then income is reported 'when earned'. That is, you report your income when you do the job, not when you are paid. Thus, if you did a job on December 10th but haven't received payment yet, you would still report the invoiced amount as income on your 2007 return. If you use the "accrual method", and report income for 2007 and end up not getting paid, then you can report a "bad debt" in 2008 to reverse the income reported previously. You cannot take "bad debt" deductions if you use the "cash method" since you only report actual cash receipts, not invoiced amounts."
I, personally, use the cash method - it's a lot easier - I got paid, I claim it...period.
There is also the issue that some accountants feel the SE tax SHOULD be paid on ALL notary income because that's the notary's contribution to social security (which would be paid if employed in the work force and not self-employed) and it's a good way to pad the notary's social security/retirement nest egg, so to speak. That's a personal decision you need to make. It may be worthwhile, since it's your first year, to discuss with a tax professional which is the best way for you as it will be dependant on a multitude of factors, not the least of which is your personal financial situation.
Hope this helps.
Linda
www.notarydepot.com/notary/lindah
http://www.notary.net/websites/LindaHubbell
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debcyn
Florida
9 Posts |
Posted - 03/14/2008 : 7:07:57 PM
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Doing my taxes for the 1st time as a notary. I have been told that here in Florida, you can charge off $10.00 for each notarization. So if I get $100.00 for the signing and have 12 stamps in the package that is a loss to me of $20.00??? Can anyone help out?
Thanks,
Debcyn |
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Kelly
California
105 Posts |
Posted - 01/29/2008 : 12:05:11 AM
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Contact a fellow professional Notary Public/Loan Signing Agent located here in California: Wendy Waites, Eyeore@aol.com
Great lady- certified, licensed, for-real, super smart!
kelly
Kelly Robertson
Coach - Mentor - Instructor
One-of-a-Kind, "How To" Workshops for New Notaries & Signing Agents http://www.SigningAgentCoach.com
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crtowles
California
553 Posts |
Posted - 01/28/2008 : 05:51:58 AM
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Please consult a tax professional that understands how notary income works. You do not want to be audited. Many of the tax people do not understand this or even knew that notary income is exempt from self employment taxes.
~Carmen |
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jbelmont
California
3106 Posts |
Posted - 01/27/2008 : 1:42:13 PM
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Hi Erica,
The way I do it ( disclaimer: not tax or legal advice ) is to figure the total price of a job. Then take the MAXIMUM amount by law that you can charge per notarized signature and call that the notary public income portion of the job. Any remainder you could call the travel fee part of the income.
You could use TWO schedule C's. The notary public income could have part of the phone expenses and office supply expenses deducted from that. The travel fee schedule C could have the however many cents per mile deduction on it. The C with your notary public income after deductions you would pay taxes but not self employment tax the way I do it. Make sure to document your C with the SE3 page which claims that notary public income is not subject to self employment tax. Good luck. |
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Erica1203
Texas
10 Posts |
Posted - 01/27/2008 : 10:48:13 AM
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I am doing my taxes again. I've only been doing mobile notary for a little over a year. 2007 I had pretty good income. Well, my question is:
The signature fees are not subject to self employment (FICA) tax. If you get a signing for a set fee, do you charge the maximum state allowed fee per notarization to figure how much is exempt from self employement tax and then the rest is travel & printing fees? Do you figure this for every signing?
If I do a smaller call (with one or two documents only) and quote a lower price per notarization (ie $5 rather than $6 max in Texas) Am I only exempt from self employement tax for $5 or can a use the max?
I know you will probably say to consult a tax professional, but I'm hoping that someone in the industry might give their advice on how they calculate the signature fees.
Thanks for your help. |
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