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Per the IRS Instructions for Schedule SE, page SE-5:

Income and Losses Not Included in Net Earnings From Self Employment

2. Fees received for services per-formed as a notary public. If you had no other income subject to SE tax, enter "Exempt—Notary" on Schedule 2 (Form 1040 or 1040-SR), line 4. Don’t file Schedule SE. However, if you had other earnings of $400 or more subject to SE tax, enter “Exempt—Notary” and the amount of your net profit as a notary public from Schedule C on the dotted line to the left of Schedule SE, line 3. Subtract that amount from the total of lines 1a, 1b, and 2, and enter the result on line 3.

To enter or edit your notary income or expenses on Schedule C in TaxAct:

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal 
  2. Click Business Income in the Federal Quick Q&A Topics menu to expand the category, then click Business income or loss from a sole proprietorship
  3. Click +Add Federal Schedule C to create a new copy of the form or click Review to review a form already created
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

After you enter the income, enter an adjustment on Schedule SE since notary public income is not subject to self-employment tax.

To enter exempt notary income on Schedule SE (this amount will transfer to Schedule SE, Part I, Line 3, which will affect the amount of self-employment tax on Schedule 2 (Form 1040) Line 4:

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal 
  2. Click Taxes in the Federal Quick Q&A Topics menu to expand the category, then click Self-employment tax adjustments
  3. Click Continue until you reach the screen titled Self-Employment Tax - Adjustments
  4. Enter the appropriate amount for Fees received as a notary public

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