As a first-time Realtor, who's supposed to provide my 1099 tax forms?

The tax reporting for real estate agents can be confusing when you're new! As a Realtor, you'll typically receive a 1099-NEC (not a 1099-MISC anymore for independent contractor payments) from your broker, not the settlement company. Your broker should issue you a 1099-NEC if they paid you at least $600 during the tax year. However, if the settlement company paid you directly instead of the payment going through your broker first, then the settlement company would be responsible for issuing the 1099-NEC. Even if you don't receive a 1099, you're still legally required to report all income you earned. You'll need to file Schedule C as a self-employed individual, listing your commission income and any business expenses you incurred as a Realtor.

After my first year as a realtor I was completely lost with tax stuff too! I tried calling the IRS and my broker multiple times but kept getting nowhere. I finally found this service called taxr.ai (https://taxr.ai) that literally saved my sanity. You upload your documents and they analyze everything for you. For my situation, they explained exactly who should've been sending me what forms and helped me figure out how to report everything correctly even though I was missing some 1099s. They also explained what deductions I could take as a realtor that I had no idea about! Might be worth checking out since you're in that weird first-year realtor confusion phase like I was.

Wanted to follow up on this - I tried taxr.ai after posting my skeptical comment and I'm actually really impressed. I uploaded my broker agreement and commission statements from my transactions last year, and they gave me a detailed breakdown of exactly what forms I should have received, who should have provided them, and how to report everything. They even pointed out that I was missing a 1099 from a relocation company that paid me directly for one transaction (totally forgot about that!). Saved me from potentially missing that income on my return. The real estate specific guidance was super helpful - definitely worth checking out if you're confused about realtor tax reporting.

I had the EXACT same issue last year! The broker kept saying the title company would send forms, title company said broker handles it, total nightmare. After calling the IRS like 20+ times and never getting through, I found Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in about 15 minutes who explained exactly what forms I should have and what to do if I never received them. Check out their demo video: https://youtu.be/_kiP6q8DX5c. Honestly it saved me so much stress. The IRS agent I talked to explained that even without the 1099, I still had to report the income on Schedule C and gave me specific instructions on how to document everything properly to avoid audit issues. Thought this might help since you're in the same boat!

I need to eat my words. After posting my skeptical comment, I was desperate enough to try Claimyr because I still hadn't gotten through to the IRS about my missing realtor tax forms. Within about 20 minutes I was actually talking to a real IRS agent! The agent confirmed that whoever paid me directly (in my case it was the title company for some transactions and my broker for others) is responsible for issuing the 1099-NEC if they paid me $600+. But they also said that even if I never get the forms, I still need to report all income on my Schedule C. The agent gave me specific guidance on how to document everything to avoid audit issues. Completely worth it and definitely not a scam like I initially thought.

Just adding another perspective as someone who's been a Realtor for 10+ years - a lot of times the payment structure determines who sends the 1099. If your broker gets the full commission from the settlement and then pays you your split, the broker sends the 1099. If the settlement company splits the commission check and pays you directly, they should send the 1099. But here's the thing - in my experience, sometimes settlement companies don't send them even when they should. I always keep my own records of EVERY transaction with copies of settlement statements, commission checks, etc. That way I can accurately report everything regardless of what forms I receive.

Also remember you need to track all your business expenses as a realtor! Even with just one transaction, you can deduct things like: - Mileage for all business driving - Marketing costs - Home office if you have one - Phone/internet (business percentage) - E&O insurance - Board dues and MLS fees - Continuing education - Business cards, signs, etc. This can save you a bunch on taxes even if you only had one transaction!

Don't forget about quarterlies! If this is your first year with self-employment income, you probably should be making quarterly estimated tax payments for 2025. Since you don't have an employer withholding taxes, you need to pay them yourself throughout the year or you could get hit with underpayment penalties. I learned this the hard way my first year as a realtor and got slapped with penalties because I didn't know about quarterly payments.

Great point about quarterly payments! This is something that catches a lot of new realtors off guard. Just to add some specifics - you generally need to make quarterly estimated payments if you expect to owe $1,000 or more in taxes for the year. The safe harbor rule is helpful here: if you pay at least 100% of last year's total tax liability (or 110% if your prior year AGI was over $150k), you won't face underpayment penalties even if you end up owing more. For someone with one $7,800 commission, you'd want to set aside roughly 25-30% for federal taxes, state taxes (if applicable), and self-employment tax. So around $2,000-$2,400 total. The next quarterly payment deadline is January 15th for Q4 2024, so definitely something to consider! You can make estimated payments online through EFTPS or send them by mail with Form 1040ES.

As a tax professional, I want to emphasize a few key points that haven't been fully addressed here. First, the deadline for receiving 1099-NEC forms is January 31st, so if you haven't received yours by now, you should definitely follow up with whoever paid you directly. Regarding deductions, yes you can absolutely deduct legitimate business expenses even with just one transaction, but they must be ordinary and necessary for your real estate business. Keep detailed records and receipts for everything. The home office deduction does require exclusive business use of that space, so be careful with that one. One thing I'd add is to consider setting up a separate business bank account if you haven't already. This makes tracking income and expenses much easier and looks more professional if you ever get audited. Also, even though you only had one transaction in 2024, if you plan to continue as a realtor, you might want to consider making quarterly estimated payments for 2025 to avoid penalties. The IRS doesn't care whether you received a 1099 or not - you're required to report all income. Keep copies of your settlement statements as backup documentation. If you're still confused about the tax reporting, consider consulting with a tax professional who has experience with real estate agents.

One thing that hasn't been mentioned yet - if you're having trouble getting clear answers from your broker or the settlement company, you can also check your MLS system or transaction management platform. Many brokerages use systems like DocuSign, SkySlope, or dotloop that keep detailed records of who received what payments and when. I'd also suggest reaching out to other agents in your office who've been through this before. Most experienced agents are happy to help newcomers navigate the tax reporting confusion. And if your broker is being vague, try talking to the office manager or transaction coordinator - they usually handle the administrative side and might have better answers about who issues the 1099s. Don't panic though - as others mentioned, even if you never receive the forms, you can still file your taxes correctly with your settlement statements and commission records. The key is just making sure you report all the income, regardless of what paperwork you do or don't receive.

Adding to what others have said about tracking expenses - don't forget about your business license fees and any association dues you paid! Even if you only closed one deal, you likely had to pay for your real estate license renewal, NAR dues, and local board fees. These are all legitimate business deductions. Also, if you drove to showings, open houses, or client meetings (even if they didn't result in sales), keep track of that mileage. The IRS standard mileage rate for 2024 was 67 cents per mile for business use. Even as a new agent, those miles can add up quickly! One more tip - if you're planning to continue in real estate for 2025, consider getting a business credit card to keep all your real estate expenses separate. Makes tax time SO much easier when everything is clearly separated from your personal expenses. Good luck with your taxes!