Are notarial fees taxable under federal and state law?

Notarial fees are considered taxable income under both federal and state law, which is why it is important for a notary to report the fees that they receive for their services. This is in line with general income principles where all income is subject to taxation unless specifically exempted by law. Therefore, notaries should maintain accurate records of their earnings and include these fees in their income tax filings.

Notaries should also be aware that specific state regulations may outline how these fees are to be reported, but the overarching principle is that they are indeed taxable. This aligns with practices expected in most professions where income derived from services rendered must be acknowledged as part of taxable income.

The other options present varying scenarios, such as exemptions or thresholds, but they do not reflect the general rule that notarial fees must be reported as income for tax purposes. Understanding this requirement ensures compliance with tax obligations and supports the integrity of the notarial profession.