TurboTax created document 'DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX' and asked me to physically mail it

[uschles]

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.

[RobertB4444]

@uschles  The threshold for the UBT is $100,000 this year.  

If you're right and your estimates cover the UBT as well as your taxes you have no issues.  If you're wrong they will charge you annoying penalties for missing the trick.  So keep track of your income when sending in those estimates.

[uschles]

Thank you for the response. I just noticed that the document TurboTax instructed me to print and mail is not just the 'Declaration of Estimates Unincorporated Business Tax' (5UBTI) which includes the estimates but also 'Unincorporated Business Tax Return For Individuals' (202S). I'm confused whether this really need to be mailed considering I just filed my taxes electronically and the numbers listed there are most likely not going to be accurate.

Would greatly appreciate any help! My instinct is to just not mail it.