Hello, I am in Washington state where we can charge $10 per notarization and now I am second guessing myself here. I am preparing my taxes and I do loan signings where there are in many cases 2 signers on one document and one notarization stamp that includes both of the signers. Is this considered 1 notarization fee or do you charge per signature if you were to break it down for tax purposes?
We can only charge per stamp.
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To clarify further what @vizionzmobilenotary said…“Per Notarial Act”
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It varies state to state, CA is per signature, MD is per stamp.
Check your handbook for your state.
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I don’t know what the law about notarial fees are in Oklahoma, where vizionzmobilenotary seems to be located. But I will say that “per stamp” is different from “per notarial act”.
The two most common notarial acts are taking an acknowledgement and administering an oath.
To take an acknowledgement, the notary asks the signer something like “Is that signature on the paper yours, and did you sign for the purposes expressed in the document?” and the signer says “yes”. That’s one notarial act. If there are two signers, and they both say yes, that’s two notarial acts.
To administer an oath, the notary has the signer raise the right hand, the notary asks something like “Do you swear the contents of the document you just signed are the truth and the whole truth, to the best of your knowledge and belief?” and the signer says “I do.” That’s one notarial act. If there are two signers who say “I do” there are two notarial acts.
After the notarial acts, it’s time for the notary to make a permanent record by writing out a notarial certificate. The notary can put the names of two or more signers in one certificate. For each certificate, there is one stamp (in some states the stamp is optional). So in the above scenario where two oaths were administered and two acknowledgements were taken, there were a total of four notarial acts, two certificates, and two stamps.
For my state, Vermont, there are no caps on fees so I don’t have to worry about how to count notarial acts or stamps.
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Responses from Oklahoma and Arizona about WA notary fees; jumping on the bandwagon here from FL!! LOL
I would refer the OP to their handbook … If you charge per signature notarized then you deduct $10 per signature notarized … If your laws state “per notarial act” then you deduct the $10 you mentioned for each notarization you did…so a signing with 10 notarizations at $10 per notarial act would be an exemption of $100…if your total fee for that signing was less than that $100, then you deduct the total fee
The key to getting the proper deductions is impeccable records pn your part that will withstand IRS scrutiny
Hope this helps. FL has “per notarization” fees also
@LindaH-FL and @ashton my apologies I was just clarifying what was said… yes always refer to the state laws… sometimes we forget that the laws are different in each state.
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Thé notarial act is the act you perform which would be your signature and stamp, not the number of signer signatures, unless you append a notary seal for each.
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Yes , Sorry I ignored stating to check State handbook first. Good thing is you all know which State I’m in🤣
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I can’t accept Tisino’s statement unless a citation to a law is provided. I will provide a citation to Vermont law, which follows the language in the Revised Uniform Law on Notarial Acts, which has been adopted by quite a few states; a version of RULONA has been passed in Oklahoma.
§ 5304. Definitions
(1) “Acknowledgment” means a declaration by an individual before a notary public that the individual has signed a record for the purpose stated in the record and, if the record is signed in a representative capacity, that the individual signed the record with proper authority and signed it as the act of the individual or entity identified in the record.
…
(7)(A) “Notarial act” means an act, whether performed with respect to a tangible or an electronic record, that a notary public may perform under the law of this State. The term includes taking an acknowledgment, administering an oath or affirmation, taking a verification on oath or affirmation, attesting a signature, and noting a protest of a negotiable instrument.
…
(18) “Verification on oath or affirmation” means a declaration, made by an individual on oath or affirmation before a notary public, that a statement in a record is true.
Notice that an acknowledgement is a declaration by an individual. Therefore, if two individuals declare something to the notary, that’s two notarial acts. Similarly for verifications on oath or affirmation. The number of stamps will be different if the names of more than one individual are put in the same certificate because the notarial acts were performed before the same notary at the same time and place.
I don’t get it. What does this have to do with preparing your taxes?
Thank you! That’s what I thought.
See, this is why I was second guessing. Our state law says per acknowledgment or per oath. And according to the law above, that would be per person not per stamp it looks like. I’m definitely going to need to verify with our state handbook.
There is an option to deduct state-regulated notary fees from your social security income, which would lead to a decrease in the social security self-employment tax you pay. To know how much to deduct, you have to know what the allowed notary fees are in your state.
Since my state used to have fee language that nobody could interpret, and now there is no fee language, this was never an option for me. I don’t understand the nitty-gritty details of how to enter this on your tax forms. Also, even if it is an option for you, it might not be a good idea because it could reduce your disability income from social security if something bad happens, and it could reduce your retirement income from social security.
You can also call the NNA hotline. They’re quick to answer as well!
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Yes, we can use it in that way here. I only consider it right now because I’m not making enough to clear the red as I’m just starting out and the market just took a complete swing and is super slow now. So really either way it’s affecting my SS. Thank you for your input and knowledge.
Definitely going to be a call I make.
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Notaries do not pay self-employment taxes. Fact.
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I should clarify my OP. Our law states per Acknowledgment/verification of oath. I assumed that meant per notarization and now I am seeing that if there are 2 signers that could be 2 acknowledgments per my one stamp/sign. So I definitely need to verify with our actual laws here.
Notaries do pay self-employment federal tax if they choose not to deduct the notary fees from their income. I have read that notaries in states that do not regulate fees can’t deduct their notary income, but I have not investigated that claim.
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