When do you need to start being concerned about tax reporting? Should I keep my notary earnings and expenses separate from my personal taxes? I keep a good accounting of my earnings and expenses now.
You will need to report your notary business income and expenses on Schedule C. You most likely have to do this, even if you break even or your notary business loses money. Download a Schedule C and practice filling it out.
You can combine related income and expenses, such as notary fees, travel fees, fees for signings where there are no notarizations, verifying I-9 forms, etc. But you have to keep it separate from your other income (school teacher, astronaut, investments, etc.).
Pay particular attention to keeping a log of your notary-related travel; for most mobile notaries that’s the biggest expense.
Federal - file quarterly. Check the IRS website small business center for forms and explanations. Keep receipts! Your bank statements are not sufficient proof. You pay any taxes due when you file.
Also, check your state’s department of revenue for any state tax requirements for self employed businesses.
use Notary Assist. You can deduct it a an expense and it keeps tracks of everything. At the end of the year just push a button.