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Gross Receipts Tax Questions
are in some states similar to
. Gross receipts tax is a tax on the total gross revenues of a company regardless of their source. It is usually levied on the seller of the goods or to service consumers. These taxes are not directly included in the listed price of the item, and are not a factor in markup or profit on company sales. Below are the most commonly asked questions about Gross Receipts taxes answered by the Experts.
If a person that lives in New Mexico claimed $10,800 for babysitting a friends kids, and then gets audited to pay Gross Tax Receipts on this is there any way around this or any way to find out if they could be exempt from these taxes since it was such a small amount of money?
In most cases a person would be taxed on your gross income as listed on their
form 1040. Any income above $400.00 would need to be reported on the federal level. They should have adjusted their gross income by deducting any related expenses. The one exception would be if they were Native American living and working on a reservation.
If a person is considering opening a new store in New Mexico, would they be required to collect Gross Receipts tax on retail sales?
In most cases the Gross Receipts tax would be due on most retail sales in the state of New Mexico.
Is a business partnership in New Mexico liable for Gross Receipts taxes?
Typically any business that sells taxable goods such as sales of almost all goods, and performances of services in most cases, is responsible for the Gross Receipts tax in the state of New Mexico.
If a couple works and one spouse pays quarterly Gross Receipts taxes on their gross revenues, should they file jointly and combine income?
The Gross Receipts tax would have to be filed separately each quarter for each business, however as long as they were married at the end of the year they can file their tax return jointly.
In New Mexico how much sales tax should I charge my customers?
In New Mexico there is no sales tax. Instead it has a Gross Receipts tax, which in most cases is passed on to the consumer so it resembles a sales tax. Typically these rates vary throughout the state from 5.125% to 7.8125%. The total rate is a combination of rates imposed by: the state, counties, and municipalities.
To answer the many questions raised by Gross Receipts taxes one must look at each case individually since the
differ from state to state. The individual or corporation would do well to stay informed of any laws in their state of residence, and to be aware if their state is one that uses Gross Receipts taxes or a sales tax. No matter which one your state uses to be well informed is always the best way to keep your business on the right track. In order to find out the many more questions about Gross Receipt taxes, you can contact the Experts.
Recent Gross Receipt Questions
I am a sole proprietor helping a company make payments. The
I am a sole proprietor helping a company make payments. The company pays me $10,000 (say) and gives me a list of payment recipients ($6,000 to A, $4,000 to B, for example). The only money I keep is what the company pays me by the hour. Do the $10,000 in the example above have any tax implications for me?
I was obligated to pay $5000 back to my former employer if
I was obligated to pay $5000 back to my former employer if I left within 24 months. My gross bonus was $8661, the net after taxes to me was $5000 that I received in September 2013. The offer letter I signed indicated that If I left within 24 months, the $5000 would be due in full. No mention of a gross $ amount in the payback portion of the letter. Two attorneys I spoke to agreed that per the letter, my obligation was $5000.
I paid it back to my former employer on January 7, 2015. The W2 I received from them reduced my earnings by $8661 and reduced the tax payments reported by $3661. I don't think they can do that since I only paid them $5000 and I paid it back in a different year.
From what I've read they should have stipulated that if I leave during the same year bonus is paid, repay $5000, if a subsequent year $8661, but they didn't and their letter to me stipulated I needed to pay them $5000 in full. In any event, I asked them for a revised W2 to reduce my earnings by $5000 from last pay stub and leave taxes reported the amounts I paid in. They refuse to revise and contend that this is how it needs to be applied and they will not revise my W2. I am confused.
My position is that I think they should reduce my gross wages by the $5000 I paid them on my W2 and leave the taxes I paid alone so I can receive the credit when I file. The way they did it costs me more tax liability when I paid the amount on my last pay stub into the system; it doesn't smell right. And since I paid them in 2015, I believe they could have left my w2 to match my last pay stub and I take the deduction on my taxes separately.
Grateful for your advice as this is highly stressful for me with tax deadline around the corner with a former employer who is punishing me for leaving them after they highly took advantage of my work ethic and professionalism. I felt that for the amount of value and improvements I made during the 13 months I was there, they should have forgiven this amount given their company size. Now to have this happen is even more upsetting.
I will have to file an extension until I resolve this, but unclear of what/how my w2 should be reported. Once I know that, I will contact the IRS and file W2 Form complaint if necessary.
I received a 1099 travel expenses job
I received a 1099 for reimbursed travel expenses for a job interview. Is this taxable income?
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