Notary Income Is Taxable! It is Just Not Self-Employment Taxable.
Legends and myths abound about the treatment of Notary Income.
The most dangerous statements go something like this: “Notary income isn’t taxable.”
That’s not exactly true. “Notary” Income is taxable income, it’s just not subject to self-employment taxes! All income earned from providing notary services, including notarial fees, travel fees and any other incidental fees, is subject to reporting to the Internal Revenue Service as income. The income earned for specific notarial acts such as acknowledgments and oaths/affirmations—is exempt from self-employment tax. This includes a person who is regularly employed but has a notary business on the side, or a person who is operating a notary business full-time.
The key is the services performed. Acknowledgments and oaths/affirmations—are exempt from self-employment tax. While the net income of a notary public is subject to federal income tax, it is not subject to self-employment tax. Section 1402(c)(1) of the Internal Revenue Code and Regulations Section 1.1402(c)-2(b) provide that the income of a notary public is not subject to self-employment tax.