COMMON TAX FORMS
Here is some additional information on some common tax forms you will likely see as a Realtor. Don't worry if you don't know what these forms are for...that's what I'm here to help you with!
Form 1099-MISC or Form 1099-NEC
You will likely receive one of these forms from the brokerage company you hang your license with. This form shows the total amount the company paid you during the year. You need to make sure that this income is included in your gross receipts for your business when you file your income tax return. The IRS will be looking for this income on your tax return.
The brokerage company will likely ask you to complete a Form W-9. This form provides the information necessary for the brokerage company to prepare a Form 1099-NEC for you. They are required by the IRS to issue you a Form 1099-NEC if they paid you $600 or more during the year. If you have an Employer Identification Number (EIN), put this on the form instead of your Social Security Number.
If your business is treated as a sole proprietorship or single-member Limited Liability Company (LLC), then you will record your income and expenses on the Schedule C on your personal tax return.