For the 2025 tax year, New Mexico implemented new limits on the deductions you previously used.
The state now has a cap on the "Additional Exemption for Persons 65 or Older." You can only claim $3,000 per person if you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2025.
As far as capital gains, for general gains (stocks, etc.), the deduction is now capped at a flat $2,500. As an exception, you can only take a larger percentage deduction if the gain came specifically from the sale of a New Mexico-based business. If your gain isn't from a local NM business, the maximum you can enter is $2,500.
As non-residents, these exemptions are further reduced based on the percentage of your income that actually comes from New Mexico.
Here are the instructions for NM adjustments: 2025 PIT-ADJ Instructions and for non-resident allocations: 2025 PIT-B Instructions
