My friend and I are arguing about this topic. I say they are required to file taxes every year. She said they are not required to file every year. Does anyone know the answer??? What happens if they don't file every year??
2007-10-26 07:48:51 · 11 answers · asked by Sarah12345 1 in Business & Finance ➔ Taxes ➔ United States
Think about it. If they we're not required to file like everyone else, wouldn't everyone try to be a real estate agent?
They are no different than anyone else.
2007-10-26 07:57:21 · answer #1 · answered by Wego The Dog 5 · 0⤊ 1⤋
I work at a Real Estate Office and just because taxes are not taken out of their commission doesn't mean that they don't have to file a tax return every year. It is up to the agent to withhold their own money to pay their taxes at the end of the year. They do get 1099s. Everyone is required to file a tax return that has an income.
2007-10-26 07:59:23 · answer #2 · answered by dawnne18 1 · 0⤊ 0⤋
Tell your friend, everyone who receives income no matter the source is required to file taxes each and every year. If people do not file and owe money then they will be paying interest and penalties. If people are entitled to a refund they will not receive it if they do not file their taxes. What gave your friend this idea in the first place? After reading some of the earlier answers given, I need to add something. Even though some people may not be required to file taxes because of low earnings you still need to file to get your tax withholdings back both federal and state.
2007-10-29 03:32:09 · answer #3 · answered by Gary 5 · 0⤊ 0⤋
Absolutely , Most agent do not have any taxes taken from their commission,But at the end of the year you are 1099 and then you will pay taxes for all your commissions. some agents set it up for every 3 months they estimate an amount and pay taxes on that if there short at the end of the year they pay the difference if they paid more then they will get some money back which rarely happens. But yes you must file taxes every year
2007-10-30 06:14:35 · answer #4 · answered by Angie R 1 · 0⤊ 0⤋
Of course they are required to file.
Generally, real estate agents are self-employed. The filing limit for self-employed people is only $400.00. In any year where they GROSS more than $400.00 they must file a return.
If she is an agent and has not filed, she has some issues that she should see a CPA or EA about.
As a side note: Real Estate agents tend to be some of the biggest PITA (Pain in the ???) clients that I know. They all think they know everything and, for whatever reason, they know very little. Also, they tend to give their clients very bad tax advice......
2007-10-26 08:07:09 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋
Well, given the market right now I'd wager that there are some starving agents out there right now who have not earned enough to be required to file. That's the only way you get around the requirement -- don't earn enough to exceed the filing requirement amount for your filing status.
2007-10-26 08:49:23 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 1⤋
LOL...the only reason a real estate agent would not have to file for a given year is if he/she received NO commissions for that particular year. Where on earth did your GF come up with her stance ?
2007-10-26 10:15:36 · answer #7 · answered by acermill 7 · 0⤊ 0⤋
Everyone and every business is required to file taxes every year unless they have no taxable income.
2007-10-26 08:12:23 · answer #8 · answered by Gypsy Girl 7 · 0⤊ 0⤋
Everyone with taxable income above the filing threshhold is required to file.
2007-10-26 07:52:46 · answer #9 · answered by Anonymous · 0⤊ 0⤋
If your earned and/or unearned income crosses a certain level depending your filing status, you MUST file.....doesn't matter what your line of work is....
If you don't file every year it is called Tax Evasion and it is a federal crime and you do the time. ---so don't do the crime.
2007-10-26 07:59:08 · answer #10 · answered by tone 6 · 0⤊ 1⤋