1099 Tax submission

[dhlee]

Hello!
I was wondering if anyone could help me with this initial big picture..


I am a fellow with W2, who started just moonlighting with independent contractor status started last year Sept 2020 onwards.
My understanding is I have to pay the 1099 tax which is the 1040-ES form.

I used Quickbooks Self Employed, for expense keeping (DEA/ license/ travel (between hospitals)/ supplies) etc. Based on the deductions, quickbooks is telling me to pay $1752 with an income of $10980 purely from 3 months of moonlighting. This is from deduction of all the DEA/ license etc. My W2 wage is ~$60,000.

However, I forgot to do the EFTPS account (which allows QB to pay directly to IRS). Therefore I need to pay via printing the 1040-ES. I thought they would also print out the Schedule C which gives itemized deductions. However, I think they just print 1040ES and I have to send a check to IRS.


My question is,
When/ where do I submit Schedule C which gives itemized deduction? How do the IRS know what I have deducted when I don't submit that?
Should I pay more just to prevent from underpayment fines?
What am I missing in my knowledge in the big picture?


Thank you so much in advance.

[CordMcNally]

How much did you pay in total federal tax in 2019 and how much did you have withheld in 2020 from your W2 job?

[dhlee]

How much did you pay in total federal tax in 2019 and how much did you have withheld in 2020 from your W2 job?

Hello! For 2019 1040 I got a refund of ~$4500. For 2020, my federal withholding YTD at December was $2600.

[jacoavlu]

Hello!
I was wondering if anyone could help me with this initial big picture..


I am a fellow with W2, who started just moonlighting with independent contractor status started last year Sept 2020 onwards.
My understanding is I have to pay the 1099 tax which is the 1040-ES form.

I used Quickbooks Self Employed, for expense keeping (DEA/ license/ travel (between hospitals)/ supplies) etc. Based on the deductions, quickbooks is telling me to pay $1752 with an income of $10980 purely from 3 months of moonlighting. This is from deduction of all the DEA/ license etc. My W2 wage is ~$60,000.

However, I forgot to do the EFTPS account (which allows QB to pay directly to IRS). Therefore I need to pay via printing the 1040-ES. I thought they would also print out the Schedule C which gives itemized deductions. However, I think they just print 1040ES and I have to send a check to IRS.


My question is,
When/ where do I submit Schedule C which gives itemized deduction? How do the IRS know what I have deducted when I don't submit that?
Should I pay more just to prevent from underpayment fines?
What am I missing in my knowledge in the big picture?


Thank you so much in advance.

tax software, if you owe penalty , should calculate your penalty

[jacoavlu]

Hello! For 2019 1040 I got a refund of ~$4500. For 2020, my federal withholding YTD at December was $2600.

refund amount simply means you overpaid your tax bill.

what was your 2019 tax. Probably, form 1040 line 24

[dhlee]

refund amount simply means you overpaid your tax bill.

what was your 2019 tax. Probably, form 1040 line 24

Thank you. My total tax was ~$1000 from which $5000 was already deducted, leading to quite a bit of refund last year.

After manually doing Schedule C, 1040 ES, SE, I now understand what I the QB numbers are telling me. It was really confusing but now makes more sense. Thank you for asking me the right questions!