Is notary income taxable in the IRS?

Asked by: Elizabeth Walker Jr.  |  Last update: March 6, 2025
Score: 4.3/5 (33 votes)

As a notary public, any income you earn from notarizing documents must be reported as part of your gross income. Notaries who work as independent contractors or operate their own notary businesses will typically file their income on Schedule C (Form 1040), where they list their business earnings and expenses.

Is notary income taxable?

According to IRS Publication 17, all fees received specifically for notarial acts should be included in gross income — the amount of money received before anything is deducted — on a Schedule C or Schedule C-EZ (Form 1040).

How do you enter exempt notary income?

Fees received for services performed as a notary public. If you had no other income subject to SE tax, enter “Exempt—Notary” on Schedule 2 (Form 1040), line 4.

What is not considered taxable by the IRS?

Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.

Do notaries get tax breaks?

Here is the good news for notaries! There is a little-known piece of tax code that states that notarial fees are not subject to self-employment tax, which means the portion of your net income that you earn from notarial fees (i.e. notarial acts) is not subject to self-employment tax!

Your Guide to Notary Taxes and Claim Deductions

36 related questions found

Is a notary a federal job?

In the United States, a notary public is a person appointed by a state government, e.g., the governor, lieutenant governor, secretary of state, or in some cases the state legislature, and whose primary role is to serve the public as an impartial witness when important documents are signed.

What category does notary fall under?

NAICS Code 541120 - Offices of Notaries sits in the 2-digit Professional, Scientific, and Technical Services sector. NAICS codes can be 2- to 6-digits and the further along the hierarchy, the more detailed and specific the category will be.

What income is exempt from federal income tax?

Exempt income includes things like distributions from some retirement accounts, gifts under a certain amount, certain benefits, and private insurance plans. Internal Revenue Service.

What money can the IRS not touch?

Certain retirement accounts: While the IRS can levy some retirement accounts, such as IRAs and 401(k) plans, they generally cannot touch funds in retirement accounts that have specific legal protections, like certain pension plans and annuities.

Does selling a car count as income in the IRS?

The IRS views any profit made from the sale of personal property, like your car, as capital gain and it may be subject to capital gains tax. You're expected to report such gains on your tax return, though the rates and specifics will depend on your overall financial situation.

Is a notarized letter proof of income?

Letter from employer • Most recent tax return (Return must be signed, and by both parties on a joint return) The letter from your employer needs to be either on your employer's letterhead or notarized.

Do notaries charge sales tax?

There is no Sales Tax on Services, just as An attorney, they do NOT pay sales tax…!!!

Can being a notary be a side hustle?

Why becoming a Notary is the ultimate side gig. Whether you're looking for a way to work from home or a part-time job to get you out of the house, you should consider becoming a Notary first. A Notary commission can open the door to more than a dozen additional money-making opportunities.

What industry is a notary considered?

Establishments of notaries public engaged in activities, such as administering oaths and taking affidavits and depositions, witnessing and certifying signatures on documents, but not empowered to draw and approve legal documents and contracts, are classified in U.S. Industry 541199, All Other Legal Services.

What are the liabilities of a notary?

A notary public is liable for all damages caused by his or her errors, omissions, improper notarizations, or negligence in the performance of a notarial act even if such actions were made inadvertently.

Can IRS see your bank account?

The Short Answer: Yes. Share: The IRS probably already knows about many of your financial accounts, and the IRS can get information on how much is there. But, in reality, the IRS rarely digs deeper into your bank and financial accounts unless you're being audited or the IRS is collecting back taxes from you.

What type of income is not taxable?

Disability and worker's compensation payments are generally nontaxable. Supplemental Security Income payments are also tax-exempt. Disability compensation or pension payments from the Department of Veterans Affairs to U.S. military Veterans are tax-free as well.

What three things will the IRS never do?

Here is a list of things a tax scammer will do but The IRS will never do:
  • Call, text, or email you and demand immediate payment.
  • Demand payment without any chance to appeal or question the amount due.
  • Threaten to have you arrested.
  • The IRS does not accept payments by gift cards.

How much can a 70 year old earn without paying taxes?

At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher.

Does Social Security count as income?

Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

Do notaries get a tax break?

This includes any fees charged for notarial acts such as acknowledgments, jurats, or certified copies. It is important to note that notary income is typically exempt from self-employment tax. The IRS allows notaries to exclude this income from self-employment taxes under Section 1402(c)(2) of the Internal Revenue Code.

What type of notary makes the most money?

#1: Loan Signing Agent

One of the most lucrative ways to make money as a notary public is by becoming a loan signing agent.

What do you call a person who is a notary?

A notary public ( a.k.a. notary or public notary; pl. notaries public) of the common law is a public officer constituted by law to serve the public in non-contentious matters usually concerned with general financial transactions, estates, deeds, powers-of-attorney, and foreign and international business.