Tax Time - Notary, Start Now to Save!

Year's end is the time to start organizing for your taxes. And when the year is new, begin new procedures to make next year's taxes better for you. Here are some ideas to make things easier for a notary.

• Gather all expenses and get them organized into categories so that they're easier to manage. As expenses occur, file them so that no item goes undeducted. Even the smallest expense is significant; they all add up over the course of a year.
• Make any business expenditures before the end of the year if at all possible so those expenses can be taken off your income for that year.
• Investment losses can be used to offset capital gains or to offset income up to a certain amount per year and can be carried over.
• Increase your deductions by including fees paid for state income tax, local income tax, real estate tax, state personal property tax, local personal property tax, and home mortgage interest.
• Medical and dental expenses are important too, as are payments made for insurance by the self-employed.
• Expenses for moving your business or moving for work-related reasons, non-cash charitable contributions, use of your car for business, work-related education and training expenses--all these and more may be used for deductions. Talk to your tax advisor to determine what fees are allowed and what fees are not.
• Minimize your income by making payments to an IRA account or retirement plan before the end of the year. If you're self-employed, talk to an investment advisor for suggestions on the best options, and open a business account such as an IRA, qualified retirement account (QRP) / Keogh, or individual 401(k).
• Contributions are tax-deductible and grow tax-deferred. With a little planning, tax time can be significantly less costly and painful!

The American Association of Notaries seeks to provide timely articles for notaries to assist them with information and ideas on managing their business and enhancing their notary education. However, the information in our articles is never meant to be legal or tax preparation advice. Please consult the tax professional or attorney of your choice for such important issues. As always, we would appreciate hearing from you. Please feel free to email us at info@usnotaries.com.