How do I know if I owe any New Mexico underpayment penalty?
You wont have an underpayment penalty on your 2020 return if any of the following are true:
- You're a first-year resident.
- Your tax for the current year, less total rebates and credits, less income tax withheld is under $1,000.
- You're a full-year New Mexico resident whose previous tax year was a 12-month tax year and you owed zero tax for that tax return.
- Your withholding and estimated tax payments were timely and enough to cover your required payment amount.
