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.
Thank you.
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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.
Thanks, ToddL99! Your explanation makes sense and cleared my concerns.
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