Due to the COVID-19 pandemic, the IRS extended the 2020 tax filing and payment due date from April 15, 2021, to May 17, 2021. This extension applies to all filers, including individuals and businesses. Remember that the penalties for not filing are higher than not paying taxes on time. If you have not filed yet and do not think you will file by the deadline, if you owe taxes, even if you cannot pay your taxes on time go ahead and file for an extension you will have until October 15, 2021, to file your return.
Has a Notary your income must be reported on Form 1040 Schedule C or Schedule C-EZ. However, notary income is exempt from self-employment tax on their notarial income because you are a public official. This means you are exempt from paying Social Security and Medicare, but you are taxed at full rate on your profit. If you operate your notary business out of your place of residence you can deduct the portion of the house used for business purposes, including expenses for homeowner’s insurance, mortgage payments, and property tax, by completing Form 8829 per IRS regulations. Anything you use for your notary business is an expense and therefore a deduction. Keeping track of your notarial expenses will make it easier to prepare taxes. I use Notary Gadget to keep my business records in order.
It is probably a good idea to go ahead and hire a tax professional if you have a new notary business if you are confused by your taxes or have a lot of questions. A Tax Professional can help you save time and money, and your tax preparation fees are tax-deductible.