I usually have a 1099-MISC. This year it came as a 1099-NEC for some side work I do for a company. I know it is not taxed and have adjusted my income taxes elsewhere to make sure the amount is covered.
This year, when I enter it, there is a 1040ES for an estimated tax payment of a large amount that is due quarterly. I would not and should not owe on the small amount on my 1099-NEC. I do not have any expenses that can be applied to this work. It is simply to make some extra money.
Why does this appear? Will I be penalized for this, since I will not be paying the estimated tax? Why is this appearing with the 1099-NEC? I never had this with the 1099-MISC.
The 1040 ES forms are prepared as a precaution and as a reminder; you are not obligated to use them.
TurboTax prepares the 1040 ES forms as a convenience for you (ready to mail if needed) and as a reminder that you may owe estimated tax payments for some of your income (where taxes are not withheld). Timely estimated payments can help avoid under-payment penalties.
If there is any Form 1099-NEC or 1099-MISC income in your current return and/or you have a tax payment due, the program anticipates you will need to make estimated payments for the current tax year and prepares the forms.
Still have questions?Make a post