Notary Tax Form 2024

Three Tax Season Essentials for Notaries and Loan Signing Agents

At Notary2Pro we help our graduates understand how to maximize their income through our Elite Loan Signing Agent Certification. One aspect of maximizing your income is keeping this most of it you can, as opposed to paying unnecessary taxes. As we edge closer to tax season, let’s think about some critical steps to reducing your Federal and State tax burden with these three important reminders.

Record-Keeping is Critical:

  1. Maintain Detailed Records of Your Earnings and Expenses: For Notary Loan Signing Agents, keeping meticulous records is paramount.
  2. Specialty software such as and Notary Assist and Notary Gadget help make this easier for Notaries and assure you do not miss important deductions, expenses as well as tracking income appropriately.
  3. Notarial Fees: According to IRS guidelines, all fees received for notarial acts must be reported as gross income on your tax return using Schedule C or Schedule C-EZ (Form 1040). While notarization fees themselves are not subject to self-employment tax, it’s crucial to differentiate these from non-notarial fees associated with your loan signing assignments, such as travel or document delivery fees, which are taxable.
  4. Remember to keep an accurate log of Mileage for all your Notary Work. Any expenses associated with your work need to be tracked, and receipts maintained. Receipts for business expenses are most common but remember your general notary supplies and your marketing efforts, including listings on directories can also be deductions. Don’t forget training like those offered by Notary2pro can also be deductible (see a tax professional for details).

Gather All Tax Documents:

As an independent contractor, you’ll likely receive a 1099-NEC form from companies that have paid you $600 or more over the tax year for loan signing assignments. It’s vital to collect all your 1099-NEC forms as they will form the basis of your income reporting to the IRS. If you’ve earned less than $600 from a company, you’re still required to report this income, so accurate record-keeping throughout the year is crucial to ensure you report all your earnings, regardless of whether you receive a 1099-NEC form. Other documents include receipts, and of course tax information from other sources of income such as W-2s. Gather these in advance for ease of filing.

Maximize Your Home Office and Business Deductions

Most Notary Loan Signing Agents work at least partly from a home office, which may qualify for a deduction. To claim a home office deduction, the IRS requires that the space is used exclusively and regularly for your business. You can deduct a portion of your mortgage interest, real estate taxes, utilities, home insurance, and even repairs. As we’ve noted do not overlook deductions for all business-related expenses, such as notary public supplies, professional development courses offered by Notary2Pro, and technology costs related to your work.

A simplified option for calculating home office deductions is to be also available. The simplified option which makes it easier to claim without detailed calculations for every expense. Highlights of the simplified option include a standard deduction of $5 per square foot of home used for business (maximum 300 square feet), certain allowable home-related itemized deductions claimed in full on Schedule A. (For example: Mortgage interest, real estate taxes)., and limitations on the home depreciation deductions.

Deductions

Did you know that many of the expenses incurred by Notaries are tax-deductible? A common oversight during tax season is failing to take advantage of these deductions. It’s crucial to consult with your tax advisor and ask questions about potential deductions – don’t hesitate to explore your options! Nearly any purchase made out-of-pocket for your professional duties can qualify as a deduction. Yes, that means the new printer you bought for last-minute document signings in your trunk could reduce your tax bill! Expenses related to communication, including landline and mobile phone services, internet, and postage fees, are also deductible. Moreover, Notaries can deduct the annual cost of their bond using Schedule C. The IRS allows for deductions on all legitimate business expenses, which means travel to clients’ homes and offices, accounting software, a home office setup, notary supplies, training costs, membership fees for Notary Associations, mobile phone and internet bills, Bond insurance, and Errors and Omission insurance are all deductible. Make sure to maximize these opportunities to lower your taxable income!

Looking Ahead

With the tax deadline set for April 15th, 2024, now is the time for Notary Loan Signing Agents to organize their finances, gather necessary documents, and consult with a tax professional to ensure a smooth filing process. By maintaining detailed records, obtaining critical documents, and remembering all eligible home office and business deductions, you can navigate tax season confidently and continue to build your notary loan signing business on solid ground.

As with all things Tax Related, Notary2Pro recommends consulting with a licenses tax professional.

Remember, preparation is key, and as a Notary2Pro graduate, you have the tools and knowledge at your disposal to approach tax season with confidence and professionalism!

Disclaimer: Notary2Pro are NOT lawyer tax professionals. Always check with professionals in your state!

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