If you earn money as a notary public, you generally must report all of your income on your federal tax return. However, not all notary income is taxed the same.

Fees you earn for performing official notarial acts are generally not subject to self-employment tax, although you must still report them as income. Other payments, such as fees for travel, printing, document handling, administrative work, or loan signing services, may be subject to self-employment tax.

If you work as a notary public, mobile notary, or notary signing agent, it’s important to know which payments qualify for the self-employment tax exemption. Understanding the difference before you file can help you report your income correctly and avoid paying more tax than you owe.

You should pay close attention if you receive Form 1099-NEC, Nonemployee Compensation; Form 1099-MISC, Miscellaneous Information; Form 1099-K, Payment Card and Third Party Network Transactions; or payments through apps or online platforms. These forms may report gross or combined payments, even if only part of the payment was for services performed as a notary public.

Separate Your Fees Before You File

The first action you should take is to review your records and separate your income into two categories:

• Fees for official notarial acts; and
  • Fees for other services, such as travel, printing, courier work, or the non-notarial portion of loan signing services.

This will help you determine what income may be exempt from self-employment tax and what income may still be subject to it.

Before filing, collect:

• Forms 1099-NEC, 1099-MISC, or 1099-K;
  • Invoices and receipts;
  • Payment app or bank records;
  • Notary journal entries;
  • Mileage and travel records; and
  • Records showing how much you charged for each service.

Report your taxable income on your federal tax return. If you are self-employed, you may need to use Schedule C, Profit or Loss from Business, to report income and expenses. Review Schedule SE, Self-Employment Tax, to determine which income is subject to self-employment tax.

If your only Schedule C income is from fees received for services performed as a notary public, review the Schedule SE instructions carefully before filing. You generally should not file Schedule SE solely because you received notary public fees, but you may need to make the required entry on Schedule 2 or Schedule SE, depending on whether you have other income subject to self-employment tax.

You generally must report notary income on your tax return by the filing deadline for the year you received the income. If you underreport income or incorrectly exclude income from self-employment tax, the IRS may send you a notice, assess additional tax, or charge penalties and interest.

If you receive an IRS notice, read it carefully and respond by the deadline listed on the notice. If you disagree, you may have the right to provide records, request a review, or appeal the IRS decision.

Tip: Good records can help prevent IRS notices, refund delays, and self-employment tax errors.

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that protects taxpayer rights and helps taxpayers resolve problems.

If you need help preparing your return, consider finding a qualified tax professional. A tax professional can help you separate notarial fees from other business income and determine how to report your income correctly.

If you are experiencing financial hardship, have tried to resolve a tax issue with the IRS, or believe an IRS process is not working as it should, TAS may be able to help.