Industries
Bookkeeping and taxes for real estate agents: Schedule C, mileage and estimated tax
How the IRS taxes licensed real estate agents as self-employed, where commissions, fees paid and expenses go on Schedule C, the 2026 mileage rates, self-employment tax and the 2026 estimated tax dates.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
The IRS treats licensed real estate agents as statutory nonemployees, self-employed for all federal tax purposes, when substantially all their pay is tied to sales rather than hours and they work under a written contract saying they won't be treated as employees. Agents report commissions on Schedule C, pay self-employment tax on Schedule SE, and generally make 2026 estimated tax payments by April 15, June 15 and September 15, 2026 and January 15, 2027 if they expect to owe at least $1,000.
Bookkeeping and tax filing for agents
Aldro is the cheapest way to get your business taxes done: $399 flat, with bookkeeping at $20 a month.
For an agent, that flat price covers everything tax for the year: Schedule C and your Form 1040, the state return, and any 1099-NEC forms you issue, with quarterly estimate reminders included. Our team prepares and files them. Bookkeeping at $20 a month covers unlimited bank and card accounts, monthly reconciliation and statements. Payroll processing and sales-tax filing aren't included.
Why agents are taxed as self-employed
The IRS names licensed real estate agents as one of three categories of statutory nonemployees. They are treated as self-employed for all federal income and employment tax purposes when both of these are true:
- Substantially all payments for their services are directly related to sales or other output, rather than to the number of hours worked
- Their services are performed under a written contract providing that they will not be treated as employees for federal tax purposes
Where an agent's income and costs go on Schedule C
Schedule C reports income or loss from a business run as a sole proprietor, including amounts shown on Forms 1099-NEC, 1099-MISC and 1099-K. Line 1 must include all gross receipts and all amounts properly shown on Forms 1099-NEC. If the box 1 totals on your Forms 1099-NEC are more than line 1, the instructions say to attach a statement explaining the difference.
Mileage: the biggest deduction to track
The IRS business standard mileage rate is 72.5 cents a mile for January 1 to June 30, 2026, and 76 cents a mile for July 1 to December 31, 2026. It was 70 cents for 2025.
You can use the standard rate only if you owned the vehicle and used the standard rate in the first year it was placed in service, or leased it and use the standard rate for the whole lease period. With the standard rate you add parking fees and tolls, but you can't also deduct depreciation, lease payments or actual operating costs.
If you take the standard mileage rate and don't need Form 4562 for another reason, you complete Part IV of Schedule C. For a vehicle used for both business and personal driving, only the business part of loan interest is deductible on Schedule C.
Self-employment tax and quarterly estimates
Net profit from Schedule C carries to Schedule SE. The 2026 Form 1040-ES worksheet takes 92.35% of net profit, applies 2.9% for Medicare and 12.4% for Social Security on up to $184,500. Half of self-employment tax is deductible on Schedule 1 (Form 1040).
In most cases you must pay 2026 estimated tax if you expect to owe at least $1,000 after withholding and refundable credits, and you expect withholding and credits to be less than the smaller of 90% of your 2026 tax or 100% of your 2025 tax. If your 2025 adjusted gross income was more than $150,000 ($75,000 married filing separately), 110% replaces 100%.
Scroll sideways to see all columns.
| Payment | Due |
|---|---|
| 1st | April 15, 2026 |
| 2nd | June 15, 2026 |
| 3rd | September 15, 2026 |
| 4th | January 15, 2027, not needed if you file your 2026 return by February 1, 2027 and pay the full balance |
If commission income comes in unevenly, the annualized income installment method can lower or remove the required payment for one or more periods. If you use it, you file Form 2210 with Schedule AI with your return. Payments made during the year are reported on Form 1040, line 26.
1099s you send and late-filing penalties
Payments to independent contractors for services, such as a transaction coordinator, go on line 11 as contract labor. The Schedule C instructions note that a business filing 10 or more information returns in total must file them electronically.
Filing late is expensive. The failure-to-file penalty is 5% of the unpaid tax for each month or part of a month a return is late, up to 25%. For a Form 1040 due after December 31, 2025 that is more than 60 days late, the minimum is $525 or 100% of the tax owed, whichever is less. When the failure-to-pay penalty applies in the same month, the failure-to-file penalty is reduced by it.
Worked example
Say an agent's Forms 1099-NEC show $120,000 of commissions for 2026, all reported on line 1. She paid $6,000 in referral fees (line 10), $2,000 to a transaction coordinator (line 11), $1,500 for insurance (line 15) and $600 for supplies (line 18). She drove 6,000 business miles in the first half of the year and 6,000 in the second: 6,000 x $0.725 = $4,350 plus 6,000 x $0.76 = $4,560, so $8,910 on line 9. Total expenses are $19,010 and net profit is $100,990. On the 1040-ES worksheet, 92.35% of that is $93,264. Medicare: 2.9% x $93,264 = $2,705. Social Security: 12.4% x $93,264 = $11,565. Self-employment tax is about $14,270, and half of it, about $7,135, is deductible on Schedule 1.
Common questions
Are real estate agents employees or self-employed?
Licensed real estate agents are statutory nonemployees, treated as self-employed for all federal tax purposes, when substantially all their pay is tied to sales or output and they work under a written contract saying they won't be treated as employees.
How do real estate agents report commissions?
On Schedule C, line 1, which must include all amounts properly shown on Forms 1099-NEC. Commissions and fees the agent pays out go on line 10, and payments to independent contractors on line 11.
What is the 2026 mileage rate for real estate agents?
72.5 cents a mile for January 1 to June 30, 2026, and 76 cents a mile for July 1 to December 31, 2026, plus parking fees and tolls.
When are 2026 estimated taxes due for agents?
April 15, June 15 and September 15, 2026, and January 15, 2027. The January payment isn't needed if the 2026 return is filed by February 1, 2027 with the full balance paid.
What if my commission income is seasonal?
The annualized income installment method can lower or eliminate the required estimated payment for one or more periods. You file Form 2210 with Schedule AI with your return if you use it.
The cheapest way to get your business taxes done: $399 flat.
Business tax filing is $399 USD a year, and it covers everything tax for that year.
How it works
- Tell us about your business. A two-minute form. No payment is collected through it.
- Get your next steps by email. We’ll email you the next steps within one business day. After you sign up we’ll send you a secure upload link for your documents.
- We file it. Our team prepares and files your return. Add bookkeeping for $20 a month if you want it.
What's included
$399 a year covers everything tax for that tax year.
- Every business return for the year. All the federal and state or provincial business returns you need for the tax year: Schedule C, 1065, 1120-S, 1120 and their state returns in the US; T2, or T1 with T2125, in Canada.
- More than one state. Multi-state returns are included at the same price.
- Your personal return. The owner’s personal return (1040 or T1) is included when it’s needed for the business income.
- Quebec. Quebec returns (CO-17, TP-1 and TP-80) are included. Our Quebec pages are in French, and our team works with you in English.
- Extensions and reminders. Extensions (Form 7004 or 4868) and quarterly estimate reminders are included.
- Information returns. 1099-NEC, T4/T4A and T5018 slips are included in the tax price.
- City and excise returns. City and local business tax returns, and state excise returns such as Washington B&O, are included in the yearly price.
- Franchise tax reports. State franchise tax reports, such as the Texas franchise tax report, are included.
- Estimated tax and instalment amounts. We work out your quarterly estimated tax payments in the US, or your CRA instalments in Canada, and tell you what to pay and when.
- Unfiled past years. Each unfiled prior-year return is $399 per tax year, the same flat price.
- Bookkeeping at $20 a month. Unlimited bank and card accounts, monthly reconciliation and monthly statements.
Basic inventory tracking for online stores, such as Shopify, is included. Full cost-of-goods reconciliation is quoted separately. Payroll processing and sales-tax filing aren’t included in bookkeeping. Prices are in USD. Our team prepares and files your return.
Sources
- IRS: Statutory nonemployees · checked October 31, 2026
- IRS: Publication 15-A · checked October 31, 2026
- IRS: Instructions for Schedule C (2025) · checked October 31, 2026
- IRS: Standard mileage rates · checked October 31, 2026
- IRS: 2026 business standard mileage rate announcement · checked October 31, 2026
- IRS: Form 1040-ES (2026) · checked October 31, 2026
- IRS: Estimated tax FAQs · checked October 31, 2026
- IRS: Failure to file penalty · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.