Tips For Notaries and Signing Agents
These are general guidelines, remembering that each person’s situation is different.
Reporting Notary Fees
All fees received for notarial acts must be accounted for in gross income, representing the total earnings before deductions. These fees should be reported on either Schedule C or Schedule C-EZ (Form 1040). Notarization fees are exempt from self-employment tax, but it is advisable to consult with a qualified tax professional or the IRS for guidance.
Paying Self Employment Taxes As a Notary
IRS Publication 17, self-employed Notary Signing Agents are obligated to pay self-employment tax if their net earnings from services, excluding notarizing documents (e.g., travel, delivering loan packages), amount to $400 or more. Income falling into this category must be reported on IRS Form 1040, Schedule SE for self-employment tax considerations.
Form 1099-NEC
If you did work for independent contractors or lenders and you were paid $400 or more, then you can expect to receive one of these forms.
Keeping Good Records
You need to keep track of all expenses related to your business. There are many products that can help but Notary Assist is great.
Home Office Deductions
Claiming a home office deduction involves strict requirements, proving exclusive and regular use of the space as your primary place of business or for clients.(NNA)
Pam Adame Mobile Notary, Loan Signing