1099: Answers to Frequently Asked Questions

This guide will show you how you can get a copy of the 1099 and back up on closed transactions starting on 2020.

Will I receive a 1099 this year?

If your 1099 earnings total for the year is $600 and above, you will receive a 1099 NEC form.

How is my 1099 calculated?

From Transactions:  Run a Darwin Cloud report called “Commission Breakdown for Agents” and use the date parameter for the year you want to calculate the 1099 amount for. The 1099 net is based on Gross Earnings post broker split, which typically is calculated as AGCI less Franchise Fee and Company Split – see example below. Other deductions such as BPOL and Bill Deducts are included in the Commissions Earned and are expense items.

Example:

$50,000       AGCI (Gross Commission)

– $3,000        Franchise Fee

– $14,100      Company $ (Company split)

———————————————

$32,900       1099 Earnings Total

***NOTE:  On some transactions, agents are splitting commissions from the Net Commission. These are reflected on the Deduct 1 and Deduct 2 lines of the commission statements and reports. Deduct 1 and Deduct 2 must be deducted from the 1099 Earnings if it was a deduction or added if it was an additional income.

Outside Transactions:  Miscellaneous income are also included on the 1099 such as the Recruiting Bonuses and Income Adjustments and Overpayments. Reimbursements are not calculated towards the 1099 Earnings.

What is the date cut off on the reported income?

Your 1099 earnings is based on the “Close Date/ Settlement Date” of the Property. If a Sale was closed in December 2021 but not paid to your bank account until January 2022, the income will still count towards your 2021 1099.

When should I receive my 1099 copy?

All 1099s are mailed before the end of January to comply with the IRS deadline.

Can I retrieve a copy of my 1099 electronically?

An electronic copy will be uploaded in paperless pipeline by Mid- February to allow agents to retrieve the copy at any time. The copies available are for transactions closed starting in the year 2020 and on-wards. See the steps below on how to pull your own copy:

1. Click this link to go to the Paperless Pipeline website then go to your Transactions tab
2. Find the file that has “Agent Master File: Your Full Name” (for example: Agent Master File: Jane Smith)
3. When you open the transaction, you will see the “1099 NEC – YYYY” form (for example: 1099 NEC – 2021). This form replaced the 1099 MISC for the 2020 commission earnings. If you received any miscellaneous income over $600 from 2020, a 1099 MISC will be mailed to you as well.
4. You will see another file called “1099 back up Detailed Breakdown”. This shows all of the expense items that were included to your 1099 earnings by property with the grand total at the end of the breakdown.

Are there other reports available to me?

Darwin Cloud:

1. You can run your Agent Billing Statements report to see the breakdown of your invoices and payments.

2. You can also run the “Commission Breakdown For Agents” and filter the date for the year you want to see the breakdown on each of your closing.

3. The Related Guides below will take you to the link for Darwin Cloud for Agents or Commission Process.

Here is a link that will direct you to the support guide: Darwin Cloud (Formerly known as Transaction Plan)

What should I do if my information is incorrect?

You can review the mailing address we have on file for you in your monthly billing statement, which you should receive on the 15th of each month. Please respond to that email with your updated mailing address information. You may also notify your ASM/MPM whenever you need to update any of your contact information and they will submit an Agent Update Form for you.

You can also send a message  to commissions@c21redwood.com if you want to verify your ACH/ Direct Deposit information, or confirm if we have your Business Entity/ LLC information for the 1099.