Understanding 1099 Forms for Real Estate Agents

As a real estate agent, you may receive a 1099 form from your broker or clients. Here’s what you need to know about 1099 forms and how they impact your taxes.

What is a 1099 form?

A 1099 form is a tax document used to report income that is not reported on a W-2 form. Real estate agents who work as independent contractors are typically issued a 1099 form instead of a W-2 form.

Who issues 1099 forms?

Your broker or clients may issue a 1099 form if you earned more than $600 from them during the tax year. If you work for a brokerage, your broker is responsible for issuing your 1099 form. If you work independently, your clients may issue a 1099 form.

How are 1099 forms used for tax purposes?

The income you report on your 1099 form is considered self-employment income and is subject to self-employment taxes. You must report all income from 1099 forms on your federal income tax return.

What expenses can you deduct?

Real estate agents who work as independent contractors can deduct business expenses related to their work on their tax return. This can include expenses such as marketing materials, office supplies, and travel expenses.


Understanding 1099 forms is an important part of managing your taxes as a real estate agent. Make sure you keep accurate records of your income and expenses and consult a tax professional if you have any questions.

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