Yes, you do
IF TX taxed that income, it would still have to be included as NM income, but you would be able to take a credit for taxes paid to TX.....BUT since TX doesn't have an income tax, NM taxes it all.
This is not unusual. All income-taxing states operate their state taxes the same way
(except for a few "reciprocal tax states" which operate in a slightly different way)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
