Santa Fe Gross Receipts Tax Return Form by xpz21332


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									                                                                     Tax Help for New Mexico’s Child Day Care Providers...
                                         New Mexico Taxation         DISTRICT TAX OFFICES:                       OTHER STATE AGENCIES:
                                                and                  New Mexico offers free tax assistance       Children, Youth and Families Dept.
                                         Revenue Department          at these TRD district tax offices:
                                                                                                                 Child Care Services, (505) 827-7499
                                                                     1. District A (Santa Fe) (505) 827-0951
                                                                                                                 Child Care Licensing, (505) 827-7499
                                                                     2. District B:
                                                                     (Albuquerque) (505) 841-6200                Health Department
                                                                     (Farmington) (505) 325-5049
                                                                                                                 Caregivers Criminal History Screening
                                                                     3. District C (Las Cruces) (575) 524-
                                                                                                                 Program, (505) 827-1417
                                                                     4. District D (Roswell) (575) 624-6065      Early Childhood Program, (505) 827-
                                        New Mexico’s Gross                                                       2578

                                           Receipts Tax              HELPFUL PUBLICATIONS:                       Family, Food and Nutrition Services,
                                                                                                                 (505) 476-8800
                                                                     ♦   Brochure, What Is Gross Receipts
                                        Day Care Providers           ♦   Brochure, New Mexico’s Income
                                                                         Tax and Child Day Care Credit

                                                                     ♦   FYI-102, Information for New Busi-

                                                                     ♦   FYI-106, Claiming Tax Credits for
                                                                         CRS Taxes and Business-Related

                                                                     ♦   FYI-200, Your Business Location
               Ne w M e x i co
         Ta x a ti o n & R e ve n u e                                ♦   FYI-215,C-SPAN Federal-State Tape
               D e p a rtm e n t
                                                                                                                 INTERNAL REVENUE SERVICE
                                                                     ♦   FYI-240, Sales to Governmental
                                                                         Agencies                                Web address,
                                                                     Ask at your district tax office, or go to
     New Mexico Taxation and                                         our web site at      Please visit our website,
       Revenue Department                                                                              , for
                                                                     Click on "forms and publications" to
                                                                                                                 questions about New Mexico Tax
                                          Tax Information & Policy                                               and child care. TRD cannot an-
                                                                     locate the publications listed above.■
Joseph Montoya Building                                                                                          swer questions on IRS issues or
1100 St. Francis Drive                                                                                           issues regulated by other state
Santa Fe, NM 87505
                                                 Revised 10/10
                                                                                                                                    from a retailer who is taking advantage of the new        Federal-
                                                                                                                                                                                              Federal-State Tape Match
If you provide day                                                       How to report gross receipts tax
                                                                                                                                    food deduction a Type 2 will no longer be necessary.
                                                                         You first need to register with the Taxation and                                                                     Income from providing day care services is also sub-
care for children                                                        Revenue Department and get a tax identification            Persons not engaging in business                          ject to income tax. If the income is taxed federally, it
                                                                                                                                                                                              is taxed also in New Mexico. After completing your
in New Mexico...                                                         number so your tax payments can be credited prop-
                                                                         erly to your account. The application for a business
                                                                                                                                    New Mexico gross receipts tax law does not consider
                                                                                                                                                                                              tax responsibilities, if any, to the federal government
                                                                                                                                    the following persons as “engaging in business.”
                                                                         tax identification number is available through your                                                                  (Internal Revenue Service), fill out your own New
                                                                                                                                    Payments they receive for their services are not sub-
If you provide day care for children, and you receive                    local tax office (see contact information on the last                                                                Mexico PIT-1 general return.
                                                                                                                                    ject to gross receipts tax:
money or other consideration for their care, YOU                         page of this publication), or on the TRD web page at
                                                                                                                                                                                              Every year the IRS and the state of New Mexico con-
ARE ENGAGING IN BUSINESS IN NEW MEXICO. Your                    Click on “Forms and Publi-          ♦   Foster parents who enter into an agreement
                                                                                                                                                                                              duct a tape match called “C-SPAN” that compares
                    income is subject to both the                        cations” and find Form ACD-31015.                              with New Mexico to provide foster family care         business income reported to the federal government
                    income tax and the state’s                                                                                          for children placed by the state;                     and gross receipts reported to the state. If gross
                                                                         Send the completed application to the Santa Fe ad-
                    gross receipts tax* unless you                       dress in the instructions. You will receive your 11-                                                                 receipts reported to New Mexico do not match busi-
                                                                                                                                    ♦   Persons who enter into an agreement with New
                    are a nonprofit group recog-                         digit identification number in about two weeks. You                                                                  ness receipts on the federal Schedule C, the tax-
                                                                                                                                        Mexico to give non-medical personal care and
                    nized by the Internal Revenue                        will also receive a CRS-1 Filer’s Kit with a half-year’s                                                             payer is asked to explain the difference.
                                                                                                                                        housekeeping help to low-income, disabled
                    Code.                                                supply of CRS-1 report forms. The CRS-1 report is the          adults though the Critical in Home Care pro-                                             PIT-
                                                                                                                                                                                              See New Mexico Personal Income Tax PIT-RC
                                                                         form to use when reporting and paying gross re-                gram;
                                                                         ceipts tax, compensating (use) tax, and withholding                                                                  instructions for definitions of
Day-care providers may be individuals, partnerships                      tax if you have employees, even if you are a nonprofit     ♦   Persons who enter into an agreement with New
or corporations. The day care may take place in a                                                                                                                                             “qualifying dependent”
                                                                         organization.                                                  Mexico to provide home-based support services
residence or at a commercial day-care center. All                                                                                       for developmentally disabled individuals either       “gainfully employed”
receipts from child day care, from whatever the                          You may also register on the TRD web page by click-
                                                                                                                                        in the homes of the developmentally disabled          “cost of maintaining a household”
payment source, are subject to the gross receipts                        ing on the “Online Services” button on the home-
                                                                                                                                        individuals or in the home of the support pro-
                                                                         page.                                                                                                                “disabled person” and
tax. Even if the payment source is a government                                                                                         vider. Payments received through such an
agency or a charitable organization, those receipts                                                                                                                                           “caregiver.”
                                                                         Buying food that you provide in your day care                  agreement must be “qualified foster care pay-
are taxable to you. You may bill your clients, but                                                                                      ments” under federal law 26 USCA 131.                 On the TRD web site at, click on
ultimately it is you, and not your client, who is liable                                                                                                                                      “Personal Income Tax Forms” in the “Individuals” menu on
for payment of the tax.                                                  When you buy food for the operation of a day care          The above instances are exceptions. Other payments
                                                                                                                                                                                              our homepage to find instructions for the state PIT-RC
                                                                                                                                    from the state, from the federal government, or from
                                                                         facility, you may give the vendor our state’s Type 2                                                                 rebate and credit schedule.
                                                                                                                                    a charitable or educational institution are subject to
                                                                         nontaxable transaction certificate (NTTC). You must
If the child for whom you provide day care is a fam-                                                                                the gross receipts tax. You receive no deduction                                                     PIT-
                                                                                                                                                                                              NOTE: You must give your client a Form PIT-CG
                                                                         resell the food in the ordinary course of your day
ily member, and you are paid for the child’s day                                                                                    from gross receipts for selling your services as a        (caregiver’s statement). The client needs that state-
                                                                         care service. The Type 2 NTTC means the person
care, you are engaging in business. The law pro-                                                                                    caregiver for dependent children to any governmen-        ment to complete the child day care worksheet on
                                                                         selling food to you for resale will not owe gross re-
vides no exception for family members paid for day                                                                                  tal entity, charitable or educational institution. You    the PIT-RC schedule when claiming state income tax
                                                                         ceipts tax on what you pay for the food. The seller
care for another family member’s dependent chil-                                                                                    owe tax on the payments received and may bill the         credit for child day care expenses. It’s on the web
                                                                         will have no reason to ask you to reimburse gross
dren.                                                                                                                               buyer of your services for your gross receipts tax        site at Click on “Personal
                                                                         receipts tax for the food. You may not deliver the
                                                                                                                                    costs if you wish. Most businesses in New Mexico          Income Tax Forms” in the “Individuals” menu.
                                                                         NTTC to the vendor for other types of purchases for
                                                                                                                                    recover their tax costs from their customers, even
*For more information on the gross receipts tax, please check our        use in your day care business.
web site at Click on “Forms and Publica-
                                                                                                    when the customer is a governmental entity or non-
tions” at the top of the homepage. Navigate to the “Brochures”           Effective January 1, 2005, a deduction became              profit organization. Sales to Indian nations, tribes or
page and choose the brochure, “What Is Gross Receipts Tax?”              available for food retailers who meet certain criteria     pueblos on their own land or to members on the                                   New Mexico Taxation and
You can also find the brochure at your local district tax office (see                                                                                                                                                Revenue Department
                                                                         and wish to take that deduction. This results in the       land of the nation, tribe or pueblo where they are
contact information on the last page of this publication), or call the
Tax Information and Policy Office at (505) 827-0908 to ask for a         food retailers not recovering the tax from consumers.      enrolled are exempt.                                                             Joseph Montoya Building
copy to be mailed to you.                                                If you purchase food for use at a day care facility                                                                                         1100 St. Francis Drive
                                                                                                                                                                                                                     Santa Fe, NM 87505

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