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Is are the New Mexico state taxes I paid the self-employment tax?

I'm sorry, I've not stated the question well. I wasn't sure how to pose it. In late 2017 I started a small, side business to help supplement my regular income. Twice in 2018 I paid the CRS-1 tax in New Mexico for the income I made.

I'm using TurboTax Home & Business 2018. I'm in the Business section. At the place where it says, "Let's gather your business info". I've already gone through the Business Income and Expenses, Rental Properties and Royalties, and Farm Income and Expenses. Now I'm at the 4th section where I says:

Business Taxes
Self-employment tax

I'm not clear; is the taxes I've paid on the NM CRS-1 form what's referred to here in TurboTax as "Business Taxes -- Self-employment tax"?

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3 Replies
JulieCo
New Member

Is are the New Mexico state taxes I paid the self-employment tax?

No, the NM CRS-1 payments were to New Mexico and would be for estimated income tax payments for the state.  These payments should be entered in your federal return as estimated tax payments and they will be deducted from the amount you have due to New Mexico.

Self-employment taxes are the Medicare and FICA taxes due on self-employment income.  If you were a W-2 employee, then the employer pays half the FICA and MCare taxes and the employee pays the other half.  But self-employed business owners pay both the employer and employee portions (total of 15.3%).  This is a FEDERAL tax and can be paid quarterly, along with federal income tax estimates using the 1040ES forms. 

TurboTax will determine the amount of self-employment taxes due for your business for 2018 and include it on your federal return.  Therefore, if you have any income taxes due on your federal return, the self-employment tax amount will also be included in the total due.

See more information here:

https://ttlc.intuit.com/replies/3301474


Is are the New Mexico state taxes I paid the self-employment tax?

Thank you for your answer. I need to ask some clarifying questions. In my regular job I am a W-2 employee. If I'm understanding you correctly, what I paid to the state of New Mexico, with the CRS-1 form, doesn't affect Social Security and Medicare at all. Is that correct? I was under the impression that it did. I know I didn't pay anything to the Federal government from the earnings I made in my side business. So, do I enter what I earned here and TurboTax calculates it for me?

Is are the New Mexico state taxes I paid the self-employment tax?

Another clarification question. My primary income is my regular, W-2 job. This business that I have is something that I do on the side. So, am I "self-employed", even though I have a regular job?
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