"Quarterly Tax Guide for Real Estate Agents"

Real estate agents, as self-employed individuals, must pay quarterly estimated taxes covering income and self-employment taxes, with deadlines on April 15, June 15, September 15, and January 15 of the following year. Accurate calculations, tracking income and expenses, and timely payments using IRS tools or professional guidance are crucial to avoid penalties.


Quarterly Estimated Tax Payments for Real Estate Agents

Real estate agents are typically considered self-employed individuals and must pay quarterly estimated taxes to the IRS. These payments are required to cover income taxes, as well as self-employment taxes, which include Social Security and Medicare contributions. Below is a breakdown of quarterly estimated tax payments for real estate agents.

Quarter Payment Due Date Income Covered Tips for Calculation
1st Quarter April 15 Income earned from January 1 to March 31 Calculate total income for the quarter, subtract business expenses, and use the IRS Form 1040-ES to estimate taxes owed.
2nd Quarter June 15 Income earned from April 1 to May 31 Adjust for any changes in income or expenses since the previous quarter and update tax estimates accordingly.
3rd Quarter September 15 Income earned from June 1 to August 31 Review year-to-date earnings and ensure you're on track to meet annual tax obligations. Use updated IRS tax brackets if applicable.
4th Quarter January 15 of the following year Income earned from September 1 to December 31 Finalize calculations based on total annual income and expenses. Consider any deductions or credits to lower tax liability.

Important Notes

  • If the payment due date falls on a weekend or holiday, the deadline is extended to the next business day.
  • Late payments may result in penalties and interest charges.
  • Real estate agents can use online payment systems like IRS Direct Pay or EFTPS to submit their quarterly taxes conveniently.
  • Consult a tax professional to ensure accurate calculations and compliance with IRS regulations.

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