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If your total with your spouse taxable income from your spouse's $35,700 wages - no dependents, no special deductions or credits - filing a joint tax return - your estimated tax liability for 2010 would be $910 minus whatever was withheld from paychecks.
Medical bills may be deducted only if you itemize - if that is only your item to itemize - you better use standard deduction $11,400 that includes everything without going into details.
S-corporation losses may be deductible only to extend of your contributions and loans to S-corporation. If your $1000 losses are deductible - that will save you about $100 in tax liability.
total is 43634 with mine minus 1163.87 federal withheld, 2216.02 ss withheld, 518.26 medicare withheld and 756 state withheld...but nothing withheld from notary income
so from the actual total, what will we owe?
let me check...
On $43,634 gross income with $1000 loses deduction - your estimated tax liability $1953 - so you will get a refund because of withholding.
Please be sure when you file - notary income is not a subject of self-employment taxes.
You also may deduct somenotary expenses - and that will reduce your tax liability. Please see this publication - http://wrightnotarypublicnews.com/documents/taxes-description.pdf
Oh, sorry - you still will owe ~$800.
Please verify if you had any expenses in connection with your notary activities.
Are you or your spouse going to school? ar eyou paying student loans?
so i can claim $1000 in personal losses for my out of pocket expenses on the S-corporation? Can i do this on a 1040 schedule sc? I spent roughly $150 in office supplies (ink for stamp, business cards, lock box, journal, etc.), $25 in national notary association membership fees, $25 in E&O insurance. I drove myself to different locations...if i can estimate the mileage can I include that? I did not keep receipts for the mileage. I am in an online certification program, but it is paid for, as well as our student loans.
S-corporation losses may be deductible only to extend of your contributions and loans to S-corporation. you need to file S-corporation tax return and issue the form K-1 to yourself reporting losses - than you will use that deduction on your tax return.
You need to have a log for your business travels to use standard mileage for deduction.
All mentioned expenses are dedcutible - but you need to put them in order.
I suggest to close your S-corporation - you do not need it - and report your notary activities on the schedule C - that is simple and easy.
I will leave soon, but will address all your questions later. Please keep asking.
my notarial record keeps a log of the address i am signing at...can that be an informal record?
for travels i mean
should i close my S-corporation before filing my taxes as an individual? I assume I will have to go to the accountant who helped set up the S-corp...I have a partner who is out of town (on the road), and I know she will need to participate. Is this something you suggest a professional for? Then the schedule c I can do myself?
at the beginning of the year, from january to the end of june i notarized for a business and they did not give me a 1099 or anything (despite my request), but they paid me, not the people i notarized. now, i do it on my own. I recalculated exact amounts (mine were estimated before) and came up with my exact income of $7240, my husband's at $35742 and dividend income of $270. I spent $105 on notary supplies, $52 on insurance and $21 on E&O insurance.
From tax prospective - I do not see any benefits for you to have S-corporation for your notary activity. To reduce your overhead for filing S-corporation tax returns - I suggest to close your S-corporation by filing a final tax return and report all your notary income and expenses on the schedule C that would be much simpler.
Because notary income is not a subject of self-employment taxes – there is no schedule SE needed. Please see the publication I referenced above for reporting notary income and expenses.
To deduct your business travel expenses - you need to keep a daily log of your trips - including how many miles you travel and business purpose of each trip. If your notarial records have this information - they may be used to support your expenses. You do not need to send these documents to the IRS with your tax return but should keep for your records.
s-corporation was for a separate business. the laws changed and the business was abandoned, basically. no money ever made from the business. it is completely separate from notary income...just a failed business venture.
Ok - so as long as you do not need S-corporation - it should be dissolved (unless you have different plans) because you are required to file S-corporation tax return even if there is no activities.
For travel expenses - you may deduct 50 cents per mile for business miles driven - see for reference - http://www.irs.gov/newsroom/article/0,,id=216048,00.html
okay, i will dissolve it. and i guess i will owe a little less than $800 for federal, plus state taxes. travel expenses for services is 14 cents though, right? thank you for your help :-)
For travel expenses - you may deduct 50 cents per mile for business miles driven - if you own the car.
great, thank you
i see why you have such good feedback
I am glad to be helpful. Take your time. If you have further questions - be sure to come back. I suggest bookmarking this page for your reference.
have you already been paid or do i have to press accept?