Enter the amount of contributions refunded to you during the tax year from the New Mexico Education Trust Fund (from one of the New Mexico approved Section 529 college savings plans) if you closed a New Mexico approved Section 529 college savings plan account. Enter contributions rolled-over from a New Mexico approved Section 529 college savings plan account to a non-New Mexico approved Section 529 college savings plan account. Do this only if you deducted the Contributions to a New Mexico-approved Section 529 Plan on Schedule PIT-ADJ of an earlier New Mexico personal income tax return.

Do not include earnings refunded to the investor, earnings rolled-over from a New Mexico approved Section 529 college savings plan account to a non-New Mexico approved Section 529 college savings plan, or qualified distributions from the account.

If you or your spouse, or both, were enrolled members of a federally recognized New Mexico Indian nation, tribe or pueblo, your income is exempt from base income both of the following apply:

• You lived on the land of the Indian nation, tribe, band or pueblo of membership when you earned it.
• You earned that income on the lands of that nation, tribe, band or pueblo.

You must meet both conditions.

CAUTION: Income earned off the lands of your own or your spouse's nation, tribe, band or pueblo is subject to New Mexico income tax no matter where you live.

Military pay of an enrolled member is exempt only for times when the home of record is on the member's own Indian nation, tribe, band, or pueblo lands.

Retirement or pension income is exempt only when the retirement or pension is the result of employment on the member's Indian nation, tribe, band, or pueblo. Retirement or pension income from employment off the lands of the nation, tribe, band, or pueblo may not be deducted.

The income of a person 100 years old or more is exempt from New Mexico's income tax, but only if the centenarian cannot be claimed as a dependent by someone else.

To qualify, you must be 100 years or older at the end of the tax year for which you claim the exemption.

Unmarried centenarians do not need to file a return unless they want to claim rebates and credits available for low-income filers.

Married Centenarians

New Mexico is a community property state. Rules are different for married 100-year-olds. Married centenarians filing jointly or separately may exempt half of all community income and all of the centenarian's separate income. If you report an exemption for more, or less, than 50% of total joint income, attach a statement showing a correct division of community and separate income and payments.

Persons 100 years old or older may not claim combined exemptions and deductions for more than 100% of income.

If you or your spouse are enrolled in a New Mexico Medical Care Savings Account (NMMSA) established by an employer, and during 2009 you have made or received contributions to the account or have made or received distributions from the account, you may be entitled to claim a New Mexico medical care savings account exemption.

A NMMSA is a tax-exempt trust or custodial account set up by a self-employed individual or a small employer that maintains a high deductible individual or family health plan. The funds from the NMMSA are used to pay the employee's unreimbursed medical care expenses. To qualify for the exemption, the qualified contributions or distributions may not be excluded, exempted, or deducted from federal taxable income.

Principal contributed to an NMMSA, interest earned on an NMMSA, money paid for eligible medical expenses from funds in an NMMSA, or money advanced to the employee by the employer for eligible medical expenses pursuant to the Medical Care Savings Account Act are exempt from New Mexico income tax.

Caution: Generally, qualified contributions and earnings are excluded, exempted, or deducted from federal adjusted gross income and distributions paid for eligible medical expenses are excluded, exempted, or deducted from federal taxable income. You may not claim the exemption from New Mexico taxable income if your qualified contribution or distribution is excluded, exempted, or deducted from federal taxable income.

Do not include excess contributions, unqualified distributions, or money rolled over into another MSA.

Deduct contributions you made during the tax year to the New Mexico Education Trust Fund (to an account in one of the New Mexico approved Section 529 college savings plans) for each beneficiary. Contributions include the principal and earnings portion of amounts rolled-over to a New Mexico approved Section 529 college savings plan account from a non-New Mexico approved Section 529 college savings plan.

NOTE: You may only deduct contributions to a Section 529 Plan established and approved by the New Mexico Education Trust Board. See the Bulletin on New Mexico Income Tax and Your Education Trust (529) Plan, from the Department's website or from one of the district offices.

A husband and wife who file separate returns may each claim half the deduction allowed on a joint return.

Enter the pay, wages, or salaries paid to you or your spouse for active duty military service in the armed forces of the United States if it was included in the federal adjusted gross income. This exemption from state income tax applies to residents and nonresidents of New Mexico.

Active duty, as defined in 37 USC 101, means full-time duty in active service, and includes full-time training duty, annual training duty, full-time National Guard duty, and attendance, while in the active service, at a school designated as a service school by law or by the Secretary concerned. Armed forces includes the Army, Navy, Air Force, Marine Corps, and Coast Guard.

If you or your spouse is 65 years of age or older and you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2009, you may claim an exemption of $3,000. The medical care expenses may be made for the care of any combination of yourself, your spouse or dependents. The deduction is allowed for out-of-state residents with income tax responsibility to New Mexico.

If you are eligible to claim the medical care expense exemption for persons age 65 years or older, you are also eligible to claim the Refundable Medical Care Credit for Persons 65 Years or Older, allowing an additional tax benefit. See the New Mexico Refundable Credit page.

The types of medical expenses that you may include are described in the instructions PIT-1 with the following exception. You may also include unreimbursed and uncompensated medical care expenses which have been included in itemized deductions on Schedule A, federal Form 1040.

Human organs are defined as all or part of a heart, liver, pancreas, kidney, intestine, lung, or bone marrow.

Enter any human organ donation related expenses, not to exceed $10,000, including lost wages, lodging, and travel expenses incurred during the taxable year by the taxpayer or the taxpayer's dependent.

A husband and wife who file separate returns for a tax year in which they could have filed a joint return may each claim only one-half of the deduction that would have been allowed on a joint return.

An individual who receives a reimbursement from the National Guard Service Member's Life Insurance Reimbursement Fund may claim a personal income tax exemption in the amount of the reimbursement. The reimbursements are issued by the New Mexico Office of Military Affairs, which sends each recipient a Form 1099Misc for the reimbursement. Attach the Form 1099Misc to support the New Mexico National Guard member life insurance reimbursements tax exemption claimed.

For purposes of the Medical Care Expense Deduction, you may claim only unreimbursed and uncompensated medical expenses NOT included in your itemized deduction amount on the federal Form 1040 return, Schedule A. Medical care expenses not included in the itemized deduction amount because they are part of the federal 7.5% of adjusted gross income floor amount, can be included here.

NOTE: If you or your spouse is 65 years of age or older, and you paid unreimbursed and uncompensated medical care expenses over $28,000 during the current tax year, you may also be able to claim an exemption of $3,000 and tax credit of $2,800. See the instructions for line 16, Schedule PIT-ADJ and line 23, Schedule PIT-RC for details.

Reimbursed and compensated insurance premiums like those paid with pretax dollars under cafeteria and similar benefit plans are also ineligible. Some of the expenses you may include are:

1. Amounts paid as premiums under Part B of Title XVIII of the Social Security Act (Medicare)
2. Amounts paid for a qualified long-term care insurance contract defined in Section 7702B(b) of the Internal Revenue Code
3. Unreimbursed insurance premiums and co-payments not deducted for federal purposes. NOTE: Premiums paid with pretax dollars through payroll deductions are not eligible.

You may claim the Special Needs Adopted Child Tax Credit if all of the following applies:

• You file a New Mexico personal income tax return.
• You are not a dependent of another taxpayer.
• You have adopted a special needs child.
• The special needs adopted child is claimed as a dependent on your federal return.

A "Special Needs Adopted Child" means an individual who may be over 18 years of age and who is certified by the Children, Youth, and Families Department or a licensed child placement agency as meeting the definition of a "difficult to place child" pursuant to the Adoption Act, and the classification is based on physical or mental impairment that is at least moderately disabling.

In the first year you claim the special needs adopted child tax credit for a qualifying adopted child, you will need to attach a copy of the certificate issued by the Human Services Department or the licensed child placement agency for each child you adopted in that year.

If you claimed the exemption for adoption of special needs children for a qualifying adopted child in a prior year, you do not need to attach the supporting documentation to the return. Maintain the documentation in your files.

Note: Effective January 1, 2007, the exemption for adoption of special needs children has been repealed, and a new special needs adopted child tax credit is created. Those who previously claimed the exemption may qualify for the new credit.

The property tax rebate may not exceed $350 ($175 for a married taxpayer filing a separate return).

You do not have to be 65 or older to be eligible for this rebate. If you are a Los Alamos or Santa Fe county resident who is age 65 or older on the last day of the tax year, you may be eligible for this rebate AND the Property Tax Rebate for Persons 65 or Older. You must attach a property tax statement to your return if the mailing address on your 2009 Form PIT-1 is not a Los Alamos or Santa Fe County address.

To qualify for the rebate, a claimant must meet all the below requirements:

• Had a principal place of residence in Los Alamos or Santa Fe County
• Had a modified gross income of $24,000 or less
• Was a resident of New Mexico during the tax year
• Was physically present in New Mexico for at least six months during 2009
• Was neither eligible to be claimed, nor actually claimed, as a dependent of another taxpayer for 2009
• Was not an inmate of a public institution for more than six months during 2009

This rebate is for the property tax billed during tax year 2009 on your principal place of residence in New Mexico. There is no property tax rebate for property that is not already subject to property tax.

Principal place of residence is the dwelling and related structures the taxpayer owns and occupies, and only that amount of land surrounding it reasonably necessary to use the dwelling as a home. For purposes of this rebate a principal place of residence does not include rented land or structures. The surrounding land may not exceed five acres.

If you have more acreage than is reasonably necessary to maintain a dwelling, adjust the amount of property tax billed to reflect the principal place of residence only. Only this smaller amount may be used to calculate the tax rebate.

If you or your spouse is 65 years of age or older and you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2009, you may claim a tax credit of $2,800. The medical care expenses may be for the care of any combination of yourself, your spouse or dependents. The tax credit is allowed for out-of-state residents with income tax responsibility to New Mexico.

Married couples filing separate returns may each claim one-half of the credit that would have been allowed on a joint return.

If you are eligible to claim the Refundable Medical Care Credit for Persons Age 65 Years or Older, you are also eligible to claim the Medical Care Expense Exemption for Persons 65 Years or Older, allowing an additional tax benefit. See the Subtractions from Income page.

The types of medical expenses that you may include are described in the instructions for line 13, Form PIT-1 with the following exception. You may also include the portion of unreimbursed and uncompensated medical care expenses which have been included in itemized deductions on Schedule A, federal Form 1040.

This program, administered by the New Mexico Game and Fish Department, assists nongame or endangered species. Ninety percent (90%) of donations go directly to benefit wildlife through research, habitat protection, public education, and wildlife rehabilitation.

Contact:
Share with Wildlife
P.O. Box 25112
Santa Fe, NM 87504-5112
(505) 476-8111

The New Mexico Department of Veterans' Services administers this fund to increase the size of the Santa Fe National Cemetery. The commission sends contributions that the Veterans' National Cemetery Fund has received since it began in excess of $1,070,000 to the Substance Abuse Education Fund.

Contact:
New Mexico Department of Veterans' Services
P.O. Box 2324
Santa Fe, NM 87504-2324
(505) 827-6300

The New Mexico Public Education Department administers the fund for substance abuse education programs in New Mexico schools.

Contact:
New Mexico Public Education Department, School Health Unit
120 S. Federal Place, Room 206
Santa Fe, NM 87501
(505) 827-1804

The Forestry Division of the New Mexico Energy, Minerals and Natural Resources Department administers this fund through the Conservation Planting Revolving Fund. Donations help a tree planting grant program for New Mexico communities.

Contact:
New Mexico Forestry Division
P O Box 1948
Santa Fe, NM 87505
(505) 476-3343

Contributions will be distributed to the Secretary of the Department of Veterans' Services for assistance to members of the New Mexico National Guard activated for service in the global war on terrorism and to their families.

Contact:
New Mexico Department of Veterans' Services
P.O. Box 2324
Santa Fe, NM 87504-2324
(505) 827-6303

Contributions are for expenditures for the kids in parks education program administered by the State Parks Division of the Energy, Minerals and Natural Resources Department.

Contact:
New Mexico State Parks Division
P.O. Box 1147
Santa Fe, NM 87504-1147
(888) 667-2757 or (505) 476-3384

The fund is appropriated to the board of regents of the University of New Mexico for amyotrophic lateral sclerosis (Lou Gehrig's disease) research. Money in the fund at the end of a fiscal year reverts to the general fund.

Contact:
UNM School of Medicine
Assistant Dean of Finance, BMSB 187, MSC 08 4720
1 University of New Mexico
Albuquerque, NM 87131
(505) 272-3558

A qualifying dependent is a person under the age of 15 at the end of the tax year who has received the services of a caregiver. A dependent includes a child of divorced or legally separated parents when the taxpayer meets all requirements for claiming a federal Child Care Credit.

Gainfully employed means working for others for compensation, either full time, part time, or being self-employed. Actively seeking employment or school attendance does not qualify as gainful employment.

A caregiver is either an individual 18 years of age or over, or a corporation who receives compensation from the credit claimant for providing direct care and supervision to a qualifying dependent in New Mexico. A caregiver may be related to, but not a dependent of, the claimant.