Making sure I've found the correct place to put the New Mexico estimated income tax I paid for 2020

Forum|Forum|5 years ago
May 9, 2021
2 replies
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I've got a side business that I earned some money in 2020. I paid the estimated income tax on the New Mexico Taxpayer Access Point (TAP) for estimated income taxes for 2020. I think I'm at the place in the TurboTax interview where I'm to enter that information, but I want to make sure. I am in the PERSONAL | Deductions & Credits page. I'm looking at the page titled, "Estimates and Other Income Taxes Paid". There are items here such as Federal, State and Local estimated income taxes. I believe I should click on the "State estimated taxes for 2020".

Am I correct? Is this where I'll enter the taxes I've paid, related to my side business? It might also be used for paying regular (i.e.: non-side business) income taxes, but I'm hoping if that's the case that I can make it clear I'm entering what I've already paid for estimated income taxes for 2020, for my side business.

Best answer by VolvoGirl

Yes that sounds right. You pick the right state in the drop down box. All estimates paid go there. They are not broken out for personal or business. Schedule C for business is a disregarded entity and are part of your personal income tax. It is included in the total tax due or refund on your 1040 tax return. The estimated payments go towards your total income tax and self employment tax.

You enter state estimated payments under the federal side (because they can be a federal itemized Deduction). THEN after you finish filling out the estimates under Federal you need to click on the State Tab at the top and start the state return over for it to update.

You have to pick the right state from the drop down box and enter the right payment dates.

ColeenD3

Yes, that is where you enter your state estimated taxes. Since your Schedule C is part of your personal return, any payments count toward all your tax liability.

VolvoGirlAnswer

Employee

Yes that sounds right. You pick the right state in the drop down box. All estimates paid go there. They are not broken out for personal or business. Schedule C for business is a disregarded entity and are part of your personal income tax. It is included in the total tax due or refund on your 1040 tax return. The estimated payments go towards your total income tax and self employment tax.

You enter state estimated payments under the federal side (because they can be a federal itemized Deduction). THEN after you finish filling out the estimates under Federal you need to click on the State Tab at the top and start the state return over for it to update.

You have to pick the right state from the drop down box and enter the right payment dates.