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TC business taxes · Form 1040-ESEstimated taxes for transaction coordinators: who pays, how much and the 2026 due dates

No employer withholds tax from a 1099 TC's fees, so the IRS expects quarterly payments. Individuals generally must pay estimated tax if they expect to owe $1,000 or more when they file. The payments cover income tax and self-employment tax – 12.4% for Social Security and 2.9% for Medicare on self-employment income (26 U.S.C. 1401). For 2026 the installments are due April 15, June 15 and September 15, 2026 and January 15, 2027; a payment due on a weekend or holiday is on time the next business day, and a mailed payment counts on its postmark date. Most people avoid the underpayment penalty if they owe less than $1,000 after withholding and credits, or paid at least 90% of this year's tax or 100% of last year's – 110% if last year's adjusted gross income was over $150,000 ($75,000 married filing separately). Uneven income, like closings bunched in spring, can use the annualized method on Form 2210.

2026 due dates (Publication 505, Table 2-1)

  1. April 15, 2026

    Q1

    Income from January 1 to March 31.

  2. June 15, 2026

    Q2

    Income from April 1 to May 31.

  3. September 15, 2026

    Q3

    Income from June 1 to August 31.

  4. January 15, 2027

    Q4

    Income from September 1 to December 31.

Ways to avoid the underpayment penalty (irs.gov, Pub. 505)

  1. Under $1,000

    You owe less than $1,000 after withholding and credits.

  2. 90% of this year

    You paid at least 90% of the tax for the current year.

  3. 100% of last year

    Or 100% of last year's tax (12-month year) – 110% if last year's AGI was over $150,000, or $75,000 married filing separately.

  4. Uneven income

    Annualize on Form 2210 and make unequal payments when closings come in waves.

A simple routine for a TC

  • Set aside a fixed share of every fee the day it is paid.
  • Pay online through your IRS account or Direct Pay – weekly or monthly is fine if each quarter's total is in by its due date.
  • Remember your state: most states with an income tax have their own estimated payments.

Questions TCs ask

Do I have to pay quarterly taxes as a 1099 transaction coordinator?

Generally yes, if you expect to owe $1,000 or more when you file – there is no employer withholding on 1099 fees.

When are 2026 estimated tax payments due?

April 15, June 15 and September 15, 2026, and January 15, 2027; a weekend or holiday moves a due date to the next business day.

What is self-employment tax?

Social Security (12.4%) and Medicare (2.9%) tax on self-employment income – 15.3% in total, paid with your income tax (26 U.S.C. 1401).

Related guides

ClosingCode's Money tab shows the next estimated payment next to your bills, with a reserve set aside from every fee you record.

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Sources (read October 25, 2026): irs.gov "Estimated taxes"; IRS Publication 505 for 2026 (Table 2-1 and the 100%/110% rule); 26 U.S.C. 1401(a)–(b) (govinfo).

General information, not tax advice. ClosingCode is software; it is not a tax preparer or CPA. Your own situation and state taxes can change the answer. This guide is not a substitute for the advice or services of an attorney.