Posted by Craig / CA
(cnaylor) on January 9, 2008, 11:24 am, in reply to "Re: Other tax tips"
69.235.16.217
Although JD's page numbers and fact's are off a little bit, generically speaking he is correct for those of us who provide Signing services.
For those notaries with "no other income subject to SE taxes" you can list "Notary Exempt" on line 58.
If you have any schedule C income (even from non notary work) you must file a schedule C and SE. There are directions for sch SC to exempt the SE taxes on the Notary Fee portion.
So if your a employee type Notary, who gets to keep their fee income, and do no other work, you still use just the 1040. If you make any other SE income, your directions have changed, but the net effect is the same.
Actually I like the fact that all income is listed on the Sch c, it's easier than explaining to a loan officer the line 21
stuff.
Here's the catch I can't quite figure out. If you are Notary exempt (SE taxes), I don't see any directions that you must report any of the fee income for income tax purposes.
I'm sure a clarification will be released soon from the IRS. I know they had like 2 weeks to produce the forms and rules after Congress finally agreed on the changes in late 2007.
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