New real estate agents are 1099 contractors who must pay quarterly estimated taxes themselves, not through an employer. Tennessee and Florida have no state income tax, but North Carolina does, so agents need to budget for both federal and state liabilities.
In real estate, one of the biggest mistakes new people make when they get in this business is forgetting you don't have a W-2 anymore. So you are going to be in charge of your own taxes. Because we are 1099s, you pay quarterly taxes. So every quarter, you're going to have to send some estimated money to the government. And then at the end of the year when you file, you'll be adding to it for what you didn't do enough or getting back what you put in. But you better put some money in. Remember as well here too, If you live in Tennessee or Florida, you can start laughing at all of us who pay state income tax because you don't have a state income tax and we're jealous. We know it. North Carolina, like many other states, is a state income tax.
