State of New Mexico: Taxation and Revenue - Tax Forms - Free State Tax Forms

State of New Mexico: Taxation and Revenue - Tax Forms

tax.state.nm.us

Taxation and Revenue Department
1100 South St. Francis Dr
P.O. Box 630
Santa Fe, NM 87504-0630
USA
Phone: (505)827-0700
email: poffice@state.nm.us

State of New Mexico: Tax Forms

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Individual Income Tax

If you earn less than $41,646 a year - you may qualify for Federal Tax Credits up to $4,824

The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

EITC For Individuals

You must meet the following EITC requirements:

* Must have a valid Social Security Number
* You must have earned income from employment or from self-employment.
* Your filing status cannot be married, filing separately.
* You must be a U.S. citizen or resident alien all year, or a nonresident alien
married to a U.S. citizen or resident alien and filing a joint return.
* You cannot be a qualifying child of another person.
* If you do not have a qualifying child, you must:
- be age 25 but under 65 at the end of the year,
- live in the United States for more than half the year, and
- not qualify as a dependent of another person
* Cannot file Form 2555 or 2555-EZ (related to foreign earn income)
* EITC Thresholds and Tax Law Updates
* Special rules may apply

PERSONAL INCOME TAXES

New Mexico imposes a tax on the net income of every resident. Residents are taxed on the net income from employment, unearned income, gambling, pensions, annuities, and income from real or personal property in this state or from businesses located in this state. Non-residents are taxed on the net income from property, employment or business in New Mexico.

Two situations require you to file personal income tax returns in New Mexico:

1. If you are required to file a federal tax return with the IRS and you are a New
Mexico resident, you must file a state income tax return.
2. If you are required to file a federal income tax return with the IRS and you
are a nonresident with income or loss from any business transaction, property,
or employment within New Mexico, you must file a state income tax return.

GROSS RECEIPTS TAXES

New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico, but in almost every case the person engaged in business passes the tax to the consumer. In that way the gross receipts tax resembles a sales tax.

The gross receipts tax rate varies throughout the state from 5.125% to 7.875%. The total rate is a combination of rates imposed by:

1. The state,
2. The counties, and
3. The municipalities

(c) Copyright 2004 New Mexico Taxation & Revenue Department