As I prepare to file my 2020 taxes, I want to have a clear understanding about the benefit of actual notarizations. I have seen some conversations about a write off for the notarial fee. I’m in CA. Is there any such benefit? Will someone enlighten me please?
Your fees for notarial acts alone (not the entire signing agent fee) is exempt from Federal SE tax. However, it is a deduction, you may (or not) want to utilize because SE tax funds your Social Security. Therefore you have to take your entire financial profile into account to determine if that is a good idea for you. Hope that helps…
Thank you! Much appreciated.
Notary Fees are taxable income but are not subject to self employment tax See Publication 17 IRS