How do I make sure that my gross receipts tax payments are considered

[DoctorWho]

I've got a side business, which I earn some for 2022. During the year I pay gross receipts tax on what I've earned in my side gig, on the New Mexico Taxpayer Access Point website. How do I make sure that what I've already paid for this side gig, at least for New Mexico income tax, is considered while doing my income taxes with TurboTax?

[Vanessa A · Accepted solution]

Gross receipts taxes in NM are basically sales tax, and not an income tax. They would be claimed as a business expense by selecting the following:

• Wages and Income
• Edit next to your business
• Go to the expense section and select start next to Taxes and Licenses.  
• Enter the Gross Receipts taxes you paid

This will give you a deduction from your business income which will lower your taxable income.

(Edited 3/10/23 @7:38AM PST) @DoctorWho

[Mike9241]

report the gross receipts as revenue. the taxes paid report as an expense under taxes both on the same  schedule C. 

[DoctorWho]

Thank you very much, Vanessa. WOW, I didn't know that the NM gross receipts tax is a sales tax and not income tax! WOW is that confusing!!!

Thank you for your assistance and instruction on this.