Independent contractors are businesses
The first thing to know about being an independent contractor is that, under both federal and New Mexico tax law, you are considered to be in business and you are self employed.
All businesses doing business in the state are required to register with the N.M. Taxation & Revenue Department and report their gross receipts (aka sales) in order to determine the amount of gross receipts tax (GRT) for which they are liable.
Once the registration process is complete the business will receive their Business Tax Identification Number (BTIN). This number is used to report gross receipts and NM income tax withheld from employees' wages.
Important: Your New Mexico BTIN is a separate identification number from your IRS Employer Identification Number (EIN) and the Employer Account Number (EAN) issued by the New Mexico Department of Workforce Solutions for reporting and paying state unemployment tax. Tip: When contacting a tax authority, be sure to use the ID number that particular agency has assigned to your business. Note: ID numbers issued by the Taxation & Revenue Dept. before July 1, 2021 are called CRS ID numbers.
Note: Out-of-state businesses are also required to file income tax returns to report the share of their profit from doing business in New Mexico.
Also read Independent contractors owe GRT