Do I file out of state (NM) independent contractor expenses on resident (MS) or non-resident (NM) tax return?

Your income is taxable on NM and MS returns. 

You have to file a non-resident return for NM and resident return in MS. If you are a Mississippi resident and earn income from another state, you must include all income on your Resident form. However, you may be entitled to claim a credit against your Mississippi tax liability for the income taxes paid to NM.

If you are engaged in business in New Mexico, you must file a New Mexico tax return and pay gross receipts tax for the privilege of doing business in New Mexico.

Taxation & Revenue NM 

Enter your Independent Contractor Income and expenses on your Federal Return and the amount will flow to the state returns. 

How do I report income from self-employment?

To ensure accurate calculations, always complete the non-resident return first.

How do I file a nonresident state return?