Notaries Are Self-Employed Taxpayers
Most notary signing agents operate as sole proprietors or single-member LLCs, making them responsible for self-employment tax (15.3% on net earnings) in addition to regular income tax. The significant upside is that self-employment comes with substantial deductible expenses that reduce your taxable income considerably when tracked properly.
Key Deductible Expenses
Vehicle mileage at the current IRS standard rate or actual vehicle costs. Home office deduction if you have a dedicated workspace. Printer, ink, and paper costs. Notary supplies, stamp, and journal. NNA membership and certification fees. E&O insurance premiums. Professional development and training. Business phone portion of your monthly phone bill. Website and all marketing costs. Professional accounting fees.
Mileage Tracking Is Critical
A signing agent driving 15,000 business miles per year generates a $9,000+ tax deduction at current IRS mileage rates. Use a mileage tracking app like MileIQ or Everlance that automatically tracks business miles using GPS — manual logs are error-prone, miss deductions, and are harder to substantiate in an audit.
Quarterly Estimated Tax Payments
If you expect to owe more than $1,000 in taxes for the year, you are required to make quarterly estimated payments. Set aside 25-30% of every payment you receive for taxes, and make quarterly payments in April, June, September, and January to avoid penalties and interest charges.