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1099-NEC quarterly Tax questions

Forum|Forum|1 year ago
February 20, 2025
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I apologize in advance this may be a bit of questions. Thank you for any and all input on these questions i appreciate it so much. This is my first year filing a 1040 with a 1099-NEC

1. When filing my quarterly taxes can i make any deductions for business expenses and/or mileage at this time?

2. When filing these quarterly taxes how does that work the end of year when i have to file my 1040 and 1099 and report the entire years annual wages, does that not make my wages even higher? I don't get how that works. Or am i not allowed to make deductions with quarterly taxes until the end of the year?

3. When paying my quarterly taxes do i have to sign up for a business account with the IRS? Or can i pay online, and the IRS will just know right away because of my Payers TIN?

4. Lastly how does one even file quarterly taxes? Is there a special form?

Thank you!

Not A Product Question

Best answer by VolvoGirl

You aren’t actually filing a quarterly tax return. You are sending in payment estimates to cover the tax due on your tax return so you don’t end up owing a lot when you file your 1040 return. Because if you file Schedule C for self employment income you will owe self employment tax on your Net Profit in addition to any regular income tax on it.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

Turbo Tax guide to Estimated taxes

A Guide to Paying Quarterly Taxes - TurboTax Tax Tips & Videos

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

AmyC

Employee

1. The IRS wants you to file quarterly based on your net income (after deductions) - not the gross.

2. Your actual wages are only reported once, on your tax return. The estimates are not reporting wages, just paying tax.

3. If you are a sole proprietor with a Sch C, you can just make Payments. Otherwise, file under your business.

4. You can just pay online. There is a form 1040ES, you can mail in but there is no reason to mail anything, especially since it is personal information that you don't want stolen.

You want to use Publication 505, Tax Withholding and Estimated Tax to determine your payments.

See also About Form 1040-ES, Estimated Tax for Individuals which has some good information.

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VolvoGirlAnswer

Employee

You aren’t actually filing a quarterly tax return. You are sending in payment estimates to cover the tax due on your tax return so you don’t end up owing a lot when you file your 1040 return. Because if you file Schedule C for self employment income you will owe self employment tax on your Net Profit in addition to any regular income tax on it.

You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

Turbo Tax guide to Estimated taxes

A Guide to Paying Quarterly Taxes - TurboTax Tax Tips & Videos

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

VolvoGirl

Employee

Here is some general information on self employment

1099NEC is self employment income.

Yes you are the owner of your own self employment business. You are in business for yourself. Use your own info. The people or company that pays you is your customer or client. You are considered to have your own business for it. YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it. The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You use your own name and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk. After you put in your income and expenses if your net profit is $400 or more you will pay 15.3% for Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version. Or use any of the Desktop installed programs. All the Desktop programs have the same forms. You just get more help and guidance in the higher versions.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf