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!
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
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.
Thanks but the SE form doesn't address the issue. I did find it and posted where I found it.
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:
If you are using the TurboTax Online Self-Employed version, use these steps:
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.!
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.
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.