Hi justarabbitfortaxes!
Thank you for your questions. When you receive the Form 1099-NEC, you are classified by the IRS as an independent contractor, and are taxes as self-employed. The reason you file as self-employed is you pay federal tax on the income, but also self-employed tax, which is your social security taxes. That is the why you are filing.
The do you need to file question; the IRS requires you to file an income tax return if your net earnings from self-employment were $400 or more.
You are not required to make estimated tax payments, but you could end up owing the IRS an underpayment penalty in addition to the taxes that you owe. The penalty will depend on how much you owe and how long you have owed it to the IRS.
To estimate your tax payments, you need to come up with a good estimate of the income and deductions you will report on your federal tax return. You can always look at your Schedule C from your 2022 tax return and make estimate your business income and business expenses for 2023. You can also take your estimated business profit and calculate the estimated tax by following the steps on your 2022 Schedule SE.
The above is a step by step calculation, but once you know your estimated business profit, you can then use the TurboTax Calculator to estimate your taxes, https://turbotax.intuit.com/tax-tools/.
New York does have the same requirements for paying estimated taxes if you want to avoid the underpayment penalty.
I hope this information is helpful. Have a great day!
Connie
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