Notary fees are exempt from SE taxes, does that hold true for even an attorney?
His records have the notary fees and attorney fees separated, but the EA that prepared his prior years returns didn't make any adjustments for the SE tax on the notary income.
Ive been digging around online, Im not finding anything concrete.
I asked in a FB group of accountants and someone said that since this is ancillary to his law practice that it wouldn't be exempt, but I cant find anything online about it.
Didn't we have an attorney that use to frequent in here...BobKaufmann...was that his name?
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I have no authority other than Section 1402(c)(1):
Trade or business
The term “trade or business”, when used with reference to self-employment income or net earnings from self-employment, shall have the same meaning as when used in section 162 (relating to trade or business expenses), except that such term shall not include—the performance of the functions of a public office, other than the functions of a public office of a State or a political subdivision thereof with respect to fees received in any period in which the functions are performed in a position compensated solely on a fee basis and in which such functions are not covered under an agreement entered into by such State and the Commissioner of Social Security pursuant to section 218 of the Social Security Act"
I would guess that, as long as the notary can properly account for the income (and they're probably required to keep log books), it should be exempt from SE tax, regardless of the attorney "day job".
I had a huge anxiety attack at 10pm last night, sometimes I feel like I'm kickin' ass and taking names, and other times I feel like I have no clue what I'm doing and want to cry!