How do I file tax as a loan signing agent/ notary public in general? Annually as income tax or quarterly as business tax? Please advise
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The best thing for you to do is to consult a tax professional. How you file taxes has a lot to do with your personal situation and the tax laws in your state. This is not something you should leave up to random strangers on a notary forum online.
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I do agree with klewis31975 in that, if you are not well versed in taxes, you may be best served engaging an experienced professional.
A ick way to make sure they understand notaries is to ask them the difference in tax treatment between signing fees and the state notary fees (discussed in these forums).
But to give a more detailed answer, I’d say ‘It depends.’ - Total revenue, net profit, business entity type (S/P, corp, etc…) and existence of payroll all have an impact.
Put simply… the IRS & states want their money. To give you a little more detail, though:
Generally, a taxpayer is expected to have sufficient money withheld from payroll. If there is no payroll, a taxpayer is expected to make quarterly estimated tax payments (the last quarter being paid no later than January 15 of the following year).
If there is no withholding and no estimated payments (or the estimated payments are too far in time behind income), the TP must either produce an acceptable reason, or be hit with significant penalties and other consequences.
HWB.
Howard W. Bleiwas, Enrolled Agent
Will the signing companies be sending us 1099 by the end of January? Or we need to ask them for it? Please advise. Thank you!