Under the "Military
Spouse Residency Relief Act" (MSRRA), your wife is not subject to NM state tax on her income from NM.
If her employer is withholding NM state tax, she should contact her employer's payroll department or preparer and submit New Mexico / Form RPD-41348.
Active-duty military and their spouses are considered to live in their
state HOR no matter where they are stationed. Their active-duty pay and the spouse's civilian pay are considered to be earned in their respective state home of record (HOR).
When she completes the Personal Interview ("My Info":
- Select TX as her state of
residence;
-
Answer
"No" when asked if you "Lived in another state in
2017?" That question only applies if you changed your state of
residence in 2017.
- When
asked if you "Earned money in another state?", answer
"No".
The program should prompt you to prepare a non-resident NM state return. If you answer all the interview questions correctly, you should get a full refund on NM tax withheld.
What
is my military "State of Residence"?
State
Military Filing Rules
