New Mexico B&O tax

[ronmcrae]

Does a self employed resident of NM have to pay both B&O taxes and income taxes on the same income? If yes is that double taxation? Does Turbo Tax provide for this?

[Irene2805]

Yes - If you have a business, New Mexico charges a gross receipts tax on persons engaged in business in the state for the privilege of doing business in the state. Tax rates vary across the state from 5.125% to 8.8125% and the rate is determined as a combination of the rates imposed by the state, the counties, and the municipalities.

However, you can deduct the B&O tax as a business expense, under Taxes and Licenses in Other Common Business Expenses.

As an individual, the net income from your business is added to your personal income and you pay income tax on that. 

To include the B&O taxes in your  business return,

1. Click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.
2. On the Your 2019 self-employed work summary screen, click on Edit next to your business. 
3. On the Here's your [business] info screen, click on box Add expenses for this work. 
4. On the Tell us about any expenses screen  mark the button next to Taxes and Licenses and click Continue at the bottom of the screen.

TurboTax does not support the payment of B&O tax.  For information on filing and paying the tax please see:   NM CRS-1 FILER'S KIT

For more information on the NM Gross Receipts tax please click on this link:  Gross Receipts Overview

[ronmcrae]

Thanks for the clear, quick and responsive answer to my question.