Hi there,
I'm filing taxes jointly with my wife and my sole proprietorship.
Last year, when I filed using TurboTax, I wasn't subject to it since my consulting business did not meet the threshold ($50,000). This year the software prompted me that it was necessary. What surprised me is that after finishing the efiling, TurboTax created another document for me which apparently I need to print and physically mail. It is titled 'DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX'.
My question: First, I'm already paying my estimated taxes every quarter. I'm not sure exactly sure how UBT affects those but I'm wondering whether providing estimated UBT is really crucial - meaning, can't I do what I did this year - send quarterly estimates - and simply pay everything for UBT I needed when I file?
Another reason is that my business fluctuates; the amounts listed in the document are likely not to be accurate. In some quarters it could be higher (or much higher) and in some it would be lower. When I pay every quarter I can adjust accordingly but the document essentially states I need to pay everything in advance.
Many thanks in advance.
