Tips and Helpful Hints 2/17
It's tax time...Remember that you do not have to pay self employment tax on fees you charge for the actual notarization. You will pay federal and state tax but not self employment. Maintain accurate records. For example. Total fee = $100. You notarized 4 documents at $5.00 each. You will pay federal, state, and self employment on $80.00. You will pay federal and state on $20.00. If you do not complete your own taxes, be sure to mention your notary fees to your accountant.
The formula is as follows:
| |
example |
| Notary Inc |
1,000.00 |
| T.Income |
20,000.00 |
| Expenses |
12,000.00 |
| Net Income |
8,000.00 |
Formula was obtained on Turbo Tax.
|
