New Mexico does not conform to the rules that allow the IRC 1341 claim of right credit. Therefore, it is not possible to take a similar credit on your state return.
For taxpayers who itemize on the federal return and take the deduction for claim of right, reducing their federal AGI, there is a limited state benefit. This is because New Mexico begins its calculation with federal AGI (and not total income).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
