TaxEngine - Basic Instructions for Preparing and Filing New Mexico Tax Returns
In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
General Qualifications for Claiming the Refundable Rebates and Credits
1. You must have been a resident of New Mexico during the tax year.
2. You must have been physically present in New Mexico for at least six months during the tax year (except for the Child Day Care Credit).
3. You were not claimed as a dependent of another taxpayer
4. You were not an inmate of a public institution for more than six months of the tax year.
Low Income Comprehensive Tax Rebate
The low income tax rebate will be automatically calculated. It will be based on the information entered for the federal Form 1040. All taxpayers, other than married couples filing separate returns, may qualify for this credit.
If you had children who were members of your household for the tax year, but did not qualify as you dependents for federal income tax purposes because of Public Assistance or Supplemental Security Income (SSI), enter the name, age and social security numbers of those minor children. This information will be used in determining allowable household members for calculating the credit.
Property Tax Rebate for Persons 65 or Older
The property tax rebate may not exceed $250 ($125 for a married taxpayer filing a separate return).
There is no property tax rebate available for property that is not already subject to property tax. The rebate is for property tax billed or for rent paid during the tax year 2007 on the principal place of residence in New Mexico.
Child Day Care Credit
You may qualify for a Child Day Care Credit of $1,200 is your modified adjusted gross income is $21,424 or less. You will need to enter the information for the qualifying dependents.
Part-Year Resident
You are considered a part-year resident of New Mexico if, during 2007, you moved your permanent home into or out of New Mexico. You must pay New Mexico income tax on income you earned, received or accrued while living in New Mexico.
TaxEngine will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.
Nonresident
If you are a resident of another state and worked in New Mexico during 2007, you are required to file a New Mexico income tax return and pay New Mexico income tax on salary wages and other employee compensation for work performed in New Mexico.
If you are a New Mexico resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity