Hi,
On my NM PIT form line 21 an error is showing and I don't know how to fix it.
"Form PIT-1: Non-refundable Credit now totaling $x. It should not be greater than $x (the total tax liability on line 18, plus the tax on lump-sum distribution on line 19, less the credit for taxes paid to another state on line 20). Please return to the Business Credits (Form PIT-CR topic to reduce the nonrefundable business credits applied to tax."
I think it stems from the fact that my NM tax liability PIT1 line 18 is less than the credit that needs to be applied (PIT1 line 21).
As I understand it NM now applies the full credit available as a credit in the year filed. There is no carryover as there was in previous years and no form to carry forward the credit.
Can I just override the error or should I do something else? I don't want to loose the full tax credit.
Thanks,
Edited to add :
Talked to NM Taxation and Rev - PIT1 Line 21 should be equal to the amount of tax due, the additional credit is applied through PIT1 line 26. I altered the amounts in the Easy step interview and the error cleared and refund looks correct.
