If you’re a Transaction Coordinator (TC), you might be wondering about 1099 forms, whether you should be receiving them, and how to handle your taxes if you don’t. The world of independent contracting can be confusing, and since every brokerage and agent operates a little differently, it’s easy to feel lost when tax season rolls around.
Let’s break it all down so you can confidently navigate your tax obligations as a Transaction Coordinator.
Do Transaction Coordinators Receive 1099s?
The IRS requires that any business or individual who pays a non-employee $600 or more in a year must issue a 1099-NEC (Non-Employee Compensation) form. However, in reality, some agents and brokerages send them, while others don’t.
Here’s what most Transaction Coordinators experience:
✅ Some agents/brokers send 1099s
✅ Some don’t, even if you earned over $600
✅ Some ask first before issuing one
✅ S Corporations (S-Corps) and LLCs taxed as S-Corps do NOT need to receive 1099s
If you’re a sole proprietor or single-member LLC, you should expect to receive a 1099-NEC from each brokerage or agent who paid you over $600 in a year. However, if they don’t send you one, that doesn’t mean you can skip reporting your earnings.
What Should Transaction Coordinators Do If They Don’t Receive a 1099?
If a broker or agent doesn’t send you a 1099, you are still required to report all income on your taxes. The IRS expects independent contractors to report earnings, regardless of whether a 1099 was received.
Best Practices for Tracking Income as a Transaction Coordinator
🔹 Keep a Spreadsheet – Track all payments received, who they were from, and the dates
🔹 Save Bank Statements – Use direct deposit records or checks as proof of payment
🔹 Save Invoices – If you send invoices for TC work, keep a record
🔹 Work with a CPA – A tax professional can help you deduct expenses and stay compliant
Pro Tip: Some TCs prefer to set up an LLC or S-Corp to simplify tax filing and avoid the hassle of 1099s. If you operate under an S-Corp, you typically won’t receive 1099s since the IRS considers it a business-to-business transaction instead of independent contractor income.
S-Corps & LLCs: Do They Need 1099s?
Many experienced Transaction Coordinators register as an S-Corp or LLC to streamline taxes and improve credibility with agents and brokerages.
🔹 If you operate as an S-Corp – You generally do NOT need to receive a 1099, and brokers are not required to issue them to you.
🔹 If you are a sole proprietor or single-member LLC (without S-Corp status) – You DO need to receive a 1099-NEC from each broker/agent who paid you over $600.
Should You Become an S-Corp as a TC?
Many Transaction Coordinators eventually switch to an S-Corp for these reasons:
✅ Avoid receiving multiple 1099s
✅ Lower self-employment taxes
✅ Establish credibility with brokerages
✅ Write off business expenses more easily
However, setting up an S-Corp comes with extra responsibilities, such as payroll requirements and additional tax filings. If you’re making $50,000+ per year as a TC, it’s worth discussing with a CPA.
What Happens If You Forget to Report TC Income?
If you don’t report income, whether or not you receive a 1099, the IRS can flag it as unreported earnings. This could lead to:
❌ Audits & penalties
❌ Back taxes & interest owed
❌ Legal complications if underreporting is intentional
Even if a brokerage doesn’t send a 1099, they may still report the payment to the IRS, meaning the IRS knows you were paid. The safest approach? Always report everything.
How to File Taxes as a Transaction Coordinator
💼 If you’re a sole proprietor – File a Schedule C with your personal tax return
💰 If you’re an LLC – File taxes based on your entity classification (Schedule C for single-member, separate returns for multi-member)
🏢 If you’re an S-Corp – File an S-Corp tax return (Form 1120S) and pay yourself a reasonable salary
Deductions TCs Can Claim
To lower taxable income, Transaction Coordinators can write off: 🖥 Software & CRM tools
🚗 Mileage for business meetings
🏠 Home office expenses
📞 Phone & internet used for work
🎓 Professional development courses
Final Thoughts: Stay Organized & Work with a CPA
As a Transaction Coordinator, whether or not you receive a 1099, your income must be reported. The best way to stay compliant is to track everything and work with a CPA who understands independent contractors.
✅ Keep records of all payments
✅ Track expenses for deductions
✅ Report income, even without a 1099
✅ Consider an S-Corp if making $50K+ per year
By staying proactive, you’ll avoid IRS headaches and keep your TC business running smoothly! 🚀
Are You a Transaction Coordinator?
How do you handle 1099s and tax reporting? Let’s discuss in the comments! 💬👇