topic Notary Public 2020 Schedule 2, Item 4 in Deductions & credits

Notary Public 2020 Schedule 2, Item 4

jaxt315 — Sat, 06 Mar 2021 13:38:10 GMT

I am a Notary Public and for years have not paid SE taxes as provided for in the IRS code. Schedule SE instructions clearly define that to declare your income is not taxable for SE purposes, that you go to 1040 Schedule 2, Item 4 and enter, “Exempt—Notary”.

This language is found under the heading, "Income and Losses Not Included in Net Earnings From Self-Employment" of the Instructions. "If you had no other income subject to SE tax, enter “Exempt—Notary” on Schedule 2 (Form 1040), line 4. Don’t file Schedule SE."

The 2020 version of TurboTax does not allow me to enter text or modify the amount listed on this line. It seems to me in past versions there was a check box to exempt Notary Public income or asked how much income was exempt.

HELP!

Re: Notary Public 2020 Schedule 2, Item 4

DoninGA — Sat, 06 Mar 2021 13:55:26 GMT

Using the TurboTax 2020 desktop editions -

To make income adjustments when you are a Notary Public

Click on Federal Taxes

Click on Other Tax Situations

On Business Taxes, click the Start button

On the Business Taxes screen, for Self-Employment tax, click the Start button

Re: Notary Public 2020 Schedule 2, Item 4

jaxt315 — Sat, 06 Mar 2021 13:55:54 GMT

I finally found the answer to my own question. Open Form “SE Adj Wks”. Go to Part II, Item 9 and fill in the amount of exempt Notary Public Income.

Re: Notary Public 2020 Schedule 2, Item 4

jaxt315 — Sat, 06 Mar 2021 13:57:12 GMT

Thanks but the SE form doesn't address the issue. I did find it and posted where I found it.

Re: Notary Public 2020 Schedule 2, Item 4

AnnetteB6 — Sat, 06 Mar 2021 14:10:25 GMT

There is a specific section within your return where you can enter the net income earned as a notary so that the self-employment tax can be adjusted and not included in the self-employment tax calculation.

If you are using the TurboTax CD/downloaded Home and Business version, use these steps:

Go to the Business tab at the top of the screen
Scroll to the Business Taxes section
Click Start or Update beside Business Taxes
Click Start or Update beside Self-Employment tax
Click Make Adjustments and enter your net income earned as a notary

If you are using the TurboTax Online Self-Employed version, use these steps:

Go to Other Tax Situations at the top of the screen
Scroll to Business Taxes and Deductions section
Click Start or Revisit beside Self-Employment tax
Click Make Adjustments and enter your net income earned as a notary

Re: Notary Public 2020 Schedule 2, Item 4

RafiAssilian — Fri, 30 Apr 2021 02:52:52 GMT

This is not an answer!

Re: Notary Public 2020 Schedule 2, Item 4

RafiAssilian — Fri, 30 Apr 2021 02:58:37 GMT

This does NOT answer the question! Notary Public are exempt from paying taxes on notarized signings. The question is how they can separate their earnings from their notarizations?

It amazes me that an expert like you keeps referring people to a general link that will not resolve their central question.!

Re: Notary Public 2020 Schedule 2, Item 4

DaveF1006 — Fri, 30 Apr 2021 03:22:27 GMT

Actually I can provide a better answer than that. After you have entered your notary income and expense information, go to the search bar with the magnifying glass and type notary public, se tax. After you press the enter button after typing this, select jump to notary public, se tax. See the screenshot below.

Re: Notary Public 2020 Schedule 2, Item 4

Badhabitz — Tue, 05 Apr 2022 21:33:33 GMT

This is incorrect, monies earned for notarial acts are not self employment taxable. For example, Ill use the state of Oklahoma, $5 per notarial act. If you completed a mortgage closing, $100 mortgage refinance, and 12 documents were notarized, 12x$5=$60, $60 of the $100 is exempt from self employment tax. This is why it is strongly encouraged to keep record of all notarial acts per assignment, I find notary gadget to be my favorite for tracking notarial acts, mileage, and expenses, it makes the process of filing taxes a lot easier.