Income from work as a notary public is free from self-employment tax

The work of notaries is required with all the many people who buy or refinance their homes. A notary must certify the signatures of many of the closing of a purchase or refinancing of real estate. A lawyer serving as a civil servant who is a witness linked to a signature. In Florida and perhaps in other states, a notary may also perform a marriage.

While the net income of a lawyer is subject to federal income tax, is not subject to self-employment tax. Section 1402 (c) (1) of the Internal Revenue Code and Regulations Section 1.1402 (c) -2 (b) provide that the income of a lawyer is not subject to self-employment tax.

If a notary has other activities such as self-employed person, the notary must pay self-employment tax on net income from another company. The notary must keep separate accounts of income and expenses for each separate activity.

The employee notary reports the revenue and expenditure to serve as a notary Schedule C of Form 1040. However, the net income by serving as a notary public does not turn on Schedule SE because the net income by serving as a notary public is free from self-employment tax.

If the taxpayer has erroneously paid self-employment tax on net income by serving as a notary public in previous years, the taxpayer should consider submitting an amended return 1040X form to request a refund for all open years. In general, a taxpayer has two years from the time when the taxpayer paid the taxes or three years from the date on which the taxpayer filed the return, whichever is later, to claim a refund. Taxpayers should consult a competent tax professional before filing an amended return .......