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

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?

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1 Best answer

Expert Alumni

Mar 9, 2023 6:02:33 PM

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

Expert Alumni

Mar 9, 2023 6:02:33 PM

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

Level 15

Mar 9, 2023 8:28:37 PM

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

Level 4

Mar 14, 2023 6:08:39 PM

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.

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