NEW MEXICO
community property state

 

Military Income:   Not taxed.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Spouse must be a resident of same state as service member. Must annually submit Form RPD-41348, Military Spouse Withholding Tax Exemption Statement, to employer or payor responsible for withholding New Mexico Tax.

Forms Used:            

Filing Status:  You must use the same filing status as on your federal return.  If filing jointly and one spouse is not a resident of New Mexico, a nonresident return is filed. 

Attach Copy of Federal Return:  No

Not Taxed: 

Other State Tax Credit:  Available for residents only.  Attach New Mexico Form PIT-ADJ and copy of other state return.

Miscellaneous:  Day Care Credit must be a resident of New Mexico on last day of year.

Where to Mail:
Refunds: Tax Due:
Taxation and Revenue Department
PO Box 25122
Santa Fe, NM  87504-5122
Taxation and Revenue Department
PO Box 25122
Santa Fe, NM  87504-5122
Forms:  (505) 827-2206 Refund Inquiry:  (505) 827-0827 (wait 12 weeks)
General Information:  (505) 827-1746 Electronic Filing:  (505) 827-0827
Other Info:

Taxpayer Information Unit
Taxation and Revenue Dept
PO Box 630
Santa Fe, NM  87502-0630

 
Website:  www.tax.newmexico.gov
E-filing Info:  Retain PIT-8453 for 3 years. 
Tax Form Instructions:
Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both New Mexico residents, lived at their present location all year, and one or both had income.

Main Info Screen.

 

W-2 Form.  New Mexico exempts active duty military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

New Mexico PIT-1 Form.  A joint resident New Mexico income tax return is prepared.

 

NM Form NM PIT-ADJ.  Verify the military income is entered on line 16 on NM PIT-ADJ, Deductions from Federal Adjusted Gross Income.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of New Mexico, while the other member is a resident of a different state.  A New Mexico income tax return must be prepared due to the taxpayer or spouse having New Mexico earned income.

Main Info Screen.  If the spouse is a domicile (resident) of another state, the parties should file as nonresidents.  For this example, the taxpayer is a resident of New Mexico while the spouse is a resident of North Dakota.

 

W-2 Form.  New Mexico exempts active duty military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

New Mexico PIT-1 Form.   A joint non-resident New Mexico income tax return should be prepared.

NM Form NM PIT-ADJ.  The active duty member's military income is exempted by entering the amount received on line 15 on NM PIT-ADJ, Deductions from Federal Adjusted Gross Income.

New Mexico Form PIT-B - Allocation and Apportionment Schedule will be generated.  This form is used to subtract out the other-states (North Dakota) income.  

 

Review the remainder of the New Mexico Form PIT-1 and PIT-B to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a New Mexico tax return due to one or both having New Mexico earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a New Mexico income tax return because the spouse worked in New Mexico.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

New Mexico Form PIT-1.   A joint non-resident New Mexico income tax return should be prepared.

 

New Mexico Form PIT-ADJ - Schedule of Additions and Deductions.  To comply with the provisions of the Service Member's Civil Relief Act and the Military Spouse Residency Relief Act, the non-resident income must be removed using NM PIT-B Allocation and Apportionment Schedule.  Check the box indicating who is the nonresident military spouse. Enter Active Duty military pay of the nonresident on line 1 as in the example. Link from Line 1, Column 2 to a scratch pad to remove the nonresident military spouse's wages and salary.

Using the example, enter the nonresident spouse's wages on the scratch pad. Ensure the wages are entered as a negative number

Review the remainder of the New Mexico Form PIT-1 and PIT-B to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from New Mexico during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of New Mexico.  The Spouse and taxpayer must file a New Mexico tax return due to one or both of them having New Mexico earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from New Mexico to North Dakota during the year.  The spouse was a resident of New Mexico but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both New Mexico and North Dakota and must file a New Mexico income tax return because the spouse worked in New Mexico.

 

W-2 Form.  New Mexico exempts active duty military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

New Mexico Form PIT-1.   A joint part-year resident New Mexico income tax return should be prepared.  

New Mexico Form PIT-ADJ - Schedule of Additions and Deductions.  To comply with the provisions of the Service Member's Civil Relief Act, the military member's non-resident income must be taken off of the New Mexico PIT-1.  You must enter Active Duty military pay on line 1 of the NM PIT-B. The residency status should be be completed as appropriate, as in the example.

Review the remainder of the New Mexico Form PIT-1 and PIT-B to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of New Mexico with Income from Another State  - Taxpayer is single.  The taxpayer must file a New Mexico tax return due to him or her having New Mexico earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of New Mexico.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

 

W-2 Form.  New Mexico exempts active duty military income.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

New Mexico PIT-1 Form.  A resident New Mexico income tax return is prepared.  New Mexico taxes residents on income from all sources, even income earned while living in another state (North Dakota as in this example).  

NM Form NM PIT-ADJ.  Verify the military income is entered on line 15 on NM PIT-ADJ, Deductions from Federal Adjusted Gross Income.

New Mexico PIT-1 Form.  Line 20 must be prepared to give a credit for taxes paid to another state (North Dakota).  Link on Line 20 to Credit for Taxes Paid to Other States Worksheet.

New Mexico NM Worksheet - Credit for Taxes Paid to Other States Worksheet.  You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  List the state to which the tax was paid Line 1 is the amount of income tax liability on the other state tax return.   Line 2 and 5 are the amount of income earned in the other state.  A copy of the other state's return must be attached to the New Mexico return if not e-filed.

 

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended New Mexico return must be filed because the taxpayer received new tax information after their New Mexico return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

New Mexico PIT-X - Amended Individual Income Tax.  Add the New Mexico PIT-X Form to the return.  You must check the box to lock in the entries in Column A - As filed, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

New Mexico PIT-X - Amended Individual Income Tax.  Enter the reason for amending the return on  Page 2 of the New Mexico PIT-X form. Determine if the taxpayer is receiving an additional refund or owes money.

Complete all other fields and forms with red or required information. 

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.