New Mexico State Tax Help
Enter contributions rolled over from a New Mexico-approved Section 529 college savings plan account to a Section 529 college savings plan account that was not approved by New Mexico. Do this only if you deducted these contributions on Schedule PIT-ADJ from 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 Section 529 college savings plan that was not approved by New Mexico, or qualified distributions from the account.
- 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.
Military pay of an enrolled member is exempt only 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 BOTH of the following apply:
- The enrolled member lives within the boundaries of the member's nation, tribe or pueblo.
- The retirement or pension is the result of employment on the member's Indian nation, tribe, or pueblo.
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.
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.
An 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.
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.
A husband and wife who file separate returns may each claim half the deduction allowed on a joint return.
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 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 Credits screen.
The types of medical expenses that you may include are described in this portion of the PIT-1 instructions with one exception. You may also include unreimbursed and uncompensated medical care expenses which have been included in itemized deductions on Schedule A, federal Form 1040.
- Part of the up to 7.5% of federal AGI which is excluded from your itemized medical deduction, or
- Not included in itemized deductions either because you didn't itemize your deductions on the federal return, or because you didn't include some eligible expenses in your itemized medical expense deductions
- Amounts paid as premiums under Part B of Title XVIII of the Social Security Act (Medicare)
- Amounts paid for a qualified long-term care insurance contract defined in Section 7702B(b) of the Internal Revenue Code
- Unreimbursed insurance premiums and co-payments not deducted for federal purposes. NOTE: Premiums paid with pretax dollars through payroll deductions are not eligible.
For purposes of this deduction:
- "Health Care Facility" means a hospital, outpatient facility, diagnostic and treatment center, rehabilitation center, free-standing hospice, physician's office, or other similar facility, regardless of location, where medical care is provided and which is licensed by any governmental entity;
- "Medical Care" means the diagnosis, cure, mitigation, treatment or prevention of disease, or care for the purpose of affecting any structure or function of the body;
- "Medical Care Expenses" means
amounts paid for:
- The diagnosis, cure, mitigation, treatment or prevention of disease, or care for the purpose of affecting any structure or function of the body, if provided by a physician or in a health care facility. Cosmetic surgery is not eligible;
- Prescribed drugs or insulin, and oxygen. A "prescribed drug" is a drug or biologically active substance for use in or on humans that requires a prescription or administration by a person licensed to do so. Costs for over-the-counter drugs are not eligible. Prescribed drugs for animals are not eligible;
- Qualified long-term care services as defined in Section 7702B (c) of the Internal Revenue Code;
- Insurance covering medical care, including amounts you paid as premiums under part B of Title XVIII of the Social Security Act (Medicare) or for a qualified long-term care insurance contract defined in Section 7702B (b) of the Internal Revenue Code, if the insurance or other amount is income for the tax year;
- Nursing services, regardless of where the services are rendered, if provided by a practical nurse or a professional nurse licensed to practice in the state according to the Nursing Practice Act;
- Specialized treatment or the use of special therapeutic devices if a physician prescribes the treatment or device, and the patient can show that the expense was incurred primarily for the prevention or alleviation of a physical or mental defect or illness. "Special therapeutic devices" include corrective eyeglasses, contact lenses and hearing aids prescribed by a physician. Expenses for guide dogs, however, are excluded;
- Care in an institution other than a hospital, such as a sanitarium or rest home, if the principal reason for the presence of the person in the institution is to receive the medical care available. If the meals and lodging are a necessary part of such care, the cost of the meals and lodging are "medical care expenses."
- "Physician" means a medical doctor, osteopathic physician, dentist, podiatrist, chiropractic physician or psychologist licensed or certified to practice in New Mexico.
Physicians licensed or certified to practice in New Mexico are recognized. Also qualified are licensed practical nurses and registered professional nurses licensed in New Mexico. Costs of care provided by other health care professionals such as physical therapists, acupuncturists and others licensed by the New Mexico Department of Health are deductible only if the care was provided in their offices or at other qualified health care facilities.
Keep full documentation of all medical care expenses for which you claim a deduction on this line. Do not send the documentation with your tax return. Keep your receipts in case you are selected for audit or verification of deductions claimed.
Married couples filing separately may claim only those expenses personally incurred. They may not claim any expenses the spouse has already claimed or plans to claim.
Do not claim payments to a veterinarian or veterinary clinic or any other expenses for family pets or other animals.
- 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.
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 Children, Youth, and Families 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 has been created. Those who previously claimed the exemption may qualify for the new credit.
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 2012 Form PIT-1 is not a Los Alamos or Santa Fe county address.
To qualify for the rebate, you must meet ALL of the following 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 2012
- Was neither eligible to be claimed, nor actually claimed, as a dependent of another taxpayer for 2012
- Was not an inmate of a public institution for more than six months during 2012
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.
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 Form PIT-1, Line 13 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.
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P.O. Box 25112
Santa Fe, NM 87504-5112
(505) 476-8111 or (505) 944-5477
New Mexico Department of Veterans Services
P.O. Box 2324
Santa Fe, NM 87504-2324
New Mexico Public Education Department, School Health Unit
120 S. Federal Place, Room 206
Santa Fe, NM 87501
New Mexico Forestry Division
P O Box 1948
Santa Fe, NM 87505
Department of Military Affairs
47 Bataan Blvd., NE
Santa Fe, NM 87508
New Mexico State Parks Division
1220 So. St. Francis Drive
Santa Fe, NM 87505
(888) 667-2757 or (505) 476-3384
UNM School of Medicine
Office of Development and Khatali Alumni Relations
MSC 08 4720, BMSB 187
1 University of New Mexico
Albuquerque, NM 87131-0001