Posted by JD/MD on January 9, 2008, 11:56 am, in reply to "Important corrections to JD & my own posting"
76.106.97.89
I may be mis-reading your post but this is not something new. Notary fee income has been required to be reported on Sch C for years.
My page numbers and facts were not off, anyone wishing to verify them can look them up for themselves. You can also find in the instructions for form 1040 on page 24 (line 21 instructions)where it states:
"Do not report on this line any income from self-employment OR fees received as a notary public. Instead, you MUST use Schedule C, C-EZ, or F, even if you do not have any business expenses."
--Previous Message--
: 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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