Tax Planning for Independent Insurance Agents.
This post will give you information that will help with Tax Planning for Independent Insurance Agents. Insurance agents are considered independent contractors. Agents report their income on the IRS form 1099. As a 1099 contractor, agents are responsible for paying their own quarterly and end-of-year taxes. At the end of the year, companies that paid you commissions will report the amount made to you. Typically, if an agent has earned more than $600, they will receive a 1099-MISC in the mail. If an agent makes less than $600, they will report that income on their Schedule C tax form.
This information is intended for insurance professionals who act as an independent contractor for one or more insurance agencies. If you work directly as an employee for an agency, you may not be a contractor. If there is any confusion, please ask the company with whom you work.
Also, as an independent contractor, the IRS automatically classifies you as a sole proprietor running your own small business. If you have established yourself as a different type of entity (such as a corporation), you may have different reporting requirements.
Below is a full guide for use by insurance professionals who act as independent contractors for either one or more insurance agencies or companies.