Remote closer taxes in the US: 1099 basics
Most remote closers in the US are paid as 1099 independent contractors, not W-2 employees, so no one withholds tax from your commission. You fill out a Form W-9, the business may send you a Form 1099-NEC (for payments made in 2026, the IRS reporting threshold is $2,000), and you owe income tax plus 15.3% self-employment tax on your net profit, usually paid in four quarterly instalments. She Sells trains women in Australia and the US to close and set appointments, and helps graduates of its career program land a role, but this is general information, not tax advice: a CPA or enrolled agent should check your own numbers.
The short version: what a 1099 closer needs to know
- You are probably a contractor. Most remote closer and appointment setter roles are commission-heavy contracts. That means you run your own little business, even if it is just you and a laptop at the kitchen table.
- The paperwork starts with a W-9. The business asks for your name and taxpayer identification number (usually your Social Security number) so it can report what it paid you.
- Form 1099-NEC reporting now starts at $2,000. Under the IRS instructions for Forms 1099-MISC and 1099-NEC, a business files a 1099-NEC for each person it paid at least $2,000 in nonemployee compensation, and the IRS lists commissions as part of that. The old $600 threshold applied up to 2025, and the new figure may be adjusted for inflation from 2027.
- Every dollar is still taxable. No form under the threshold does not mean no tax. You report all your income.
- Self-employment tax is 15.3%. The IRS self-employment tax page splits that into 12.4% Social Security and 2.9% Medicare, and you must file Schedule SE once your net self-employment earnings reach $400.
- Pay as you go. If you expect to owe at least $1,000 for the year, the IRS generally expects quarterly estimated payments.
W-2 vs 1099: why it matters for closers
A W-2 employee has tax withheld from every pay cheque (paycheck, if you’re in the US) and the employer pays half of Social Security and Medicare. A 1099 contractor gets the full commission with nothing taken out, and pays both halves of those taxes herself through self-employment tax. The upside: you can deduct legitimate business costs, and the IRS lets you deduct the employer-equivalent half of your self-employment tax when working out your adjusted gross income.
If you’re still getting your head around how closers are paid in the first place, read high ticket closer commission explained before you dive into the tax side. Commission timing (paid on cash collected, clawbacks, payment plans) affects when income lands in your tax year.
Are you really a contractor?
The label on your contract doesn’t settle it. The IRS guidance on contractor or employee status looks at three categories of evidence: behavioural control (does the company control what you do and how you do it?), financial control (how you’re paid, whether expenses are reimbursed, who provides the tools) and the type of relationship (contracts, benefits, how permanent the work is). If it’s genuinely unclear, either you or the business can file Form SS-8 and ask the IRS to decide, though the IRS warns a determination can take at least six months. A business that treats an employee as a contractor without a reasonable basis can be held liable for the employment taxes.
In practice, closers who set their own hours, use their own setup and are paid purely on results usually look like contractors. If a company dictates your schedule down to the minute, trains you as staff and supplies everything, ask questions.
Key tax forms for remote closers
| Form | Who uses it | What it does |
|---|---|---|
| W-9 | You give it to the US business | Supplies your name and taxpayer ID so the business can report what it paid you |
| 1099-NEC | The business sends it to you and the IRS | Reports nonemployee pay, including commissions, of $2,000 or more for 2026 payments |
| 1099-K | Payment apps and card processors | Reports payments received through platforms, generally only above $20,000 and 200 transactions |
| Schedule C | You, with your Form 1040 | Works out your business profit (income minus allowable expenses) |
| Schedule SE | You, with your Form 1040 | Works out self-employment tax on your net earnings |
| 1040-ES | You, during the year | Vouchers and worksheet for quarterly estimated tax payments |
| W-8BEN | Non-US contractors (for example, Australians) | Certifies you are a foreign person to a US payer, instead of a W-9 |
What about PayPal, Venmo and other payment apps?
Some businesses pay contractors through apps or processors. In October 2025 the IRS confirmed the Form 1099-K threshold reverted to the older rule: these platforms don’t have to file a 1099-K unless your payments exceed $20,000 and you have more than 200 transactions. Plenty of closers will never see a 1099-K, but you still report the income either way.
Want the skill and the support to land a remote sales role? Book a free call with the She Sells team in Australia and the US.
Quarterly estimated taxes: the 2026 dates
Because nothing is withheld, the IRS expects you to pay through the year. The 2026 Form 1040-ES says you generally must pay estimated tax if you expect to owe at least $1,000 after withholding and refundable credits, and your withholding will be less than the smaller of 90% of this year’s tax or 100% of last year’s.
| Payment | Covers income earned | Due date |
|---|---|---|
| 1st | January to March 2026 | 15 April 2026 |
| 2nd | April and May 2026 | 15 June 2026 |
| 3rd | June to August 2026 | 15 September 2026 |
| 4th | September to December 2026 | 15 January 2027 |
You can skip the January payment if you file your 2026 return by 1 February 2027 and pay the full balance with it. Miss payments and you may face a penalty even if you end up due a refund. A simple habit that saves a lot of stress: every time a commission lands, move a portion into a separate savings account labelled “tax”, and ask your tax pro what percentage suits your situation.
Deductions and record-keeping
Your Schedule C profit is your income minus allowable business expenses, and both income tax and self-employment tax are worked out from that profit. Costs closers commonly ask about include a headset, CRM or dialler subscriptions, video call software, a portion of your phone and internet, and sales training. Whether each one is deductible, and how much, depends on your facts, so run your list past a CPA or enrolled agent.
The home office deduction
Working from home is the whole point for most of us, but the home office deduction has strict rules. The IRS home office page says the space must be used regularly and exclusively for business, and it must be your principal place of business. The dining table where the kids also do homework usually doesn’t count; a spare room used only for calls might. Renters can claim it too.
Keep records like a business owner
- Save every commission statement and reconcile it against your bank deposits.
- Keep receipts for business purchases in one folder or app.
- Use a separate bank account for business income and expenses.
- Record your quarterly payments and their confirmation numbers.
State taxes vary
Federal tax is only part of the picture. Your state may charge income tax on your earnings, may have its own estimated payment rules, and may set different reporting thresholds for forms. Rules change from state to state, so check your state revenue department’s website or ask a local tax professional, especially if you move during the year.
Australians working for US businesses
Lots of Australian mums close for US companies from home, often on US-hours shifts. If you are an Australian resident for tax purposes, a US business will usually ask you for a Form W-8BEN rather than a W-9; the IRS describes it as the form a foreign person gives to a payer or withholding agent. Back home, the ATO says Australian residents must declare worldwide income, including income for services provided to an organisation outside Australia, as if it were earned here. If tax was paid overseas, you may be able to claim a foreign income tax offset. Many Australian contractors operate as sole traders with an ABN; a registered tax agent can tell you whether that, GST and PAYG instalments apply to you.
Where She Sells fits in
Tax is the boring-but-important bit of contracting. The exciting bit is building the skill. She Sells is a remote sales program for women, especially mums (moms in the US). She Launches is the foundation program with live coaching, role play and frameworks. She Soars is the career program through the She Sells Cert III in Remote Sales certificate: once you’re certified, our recruitment team works with you to land a role within 90 days, or your money back. You can compare both on our programs page.
I know the money side can feel scary. When I moved into remote sales in 2020, I made $440 in my first month, which is a reminder that results take time and that commission income goes up and down. For honest public pay ranges, see how much do remote closers make, and if you’re still weighing up options, our guide to legit work-from-home jobs for moms in the US covers what to look for and what to avoid.
Ready to learn remote closing properly? Book a free call and find out which She Sells program suits you.
Results vary. Nothing here is a promise of income. See our earnings disclaimer.
Frequently asked questions
Do I have to pay tax if I earn less than $2,000 from a company?
Yes. The $2,000 figure only decides whether the business must file a Form 1099-NEC for 2026 payments. All of your income is still reportable, and self-employment tax applies once your net self-employment earnings reach $400.
Is 1099 income taxed more than W-2 income?
The income tax rates are the same, but as a contractor you also pay both halves of Social Security and Medicare through the 15.3% self-employment tax. You can usually offset some of that by deducting legitimate business expenses and the employer-equivalent half of the self-employment tax.
When are quarterly taxes due in 2026?
According to the 2026 Form 1040-ES, payments are due 15 April, 15 June and 15 September 2026, then 15 January 2027. If a date falls on a weekend or legal holiday, the next business day applies.
I’m Australian and closing for a US company. Do I fill out a W-9?
Usually not. A W-8BEN is the form a foreign person gives a US payer, while the W-9 is for US persons. You still declare that income to the ATO if you are an Australian resident for tax purposes, so speak with a registered tax agent.
Who should I ask about my own tax situation?
In the US, a CPA or an IRS enrolled agent can look at your contracts, deductions and state rules. In Australia, use a registered tax agent. This article is general information only and not tax advice.
