New Mexico's PIT-ADJ form for income exemptions (from taxation) has line 24 for listing our Social Security income. In NM in 2022 we have repeatedly been told we're allowed an exemption for all our Social Security income as long as our AGI is less than $100,000 when filing single. (I do qualify). But on line 24 TurboTax has put less than half my SS income.
To me, the NM PIT-ADJ instructions for calculating how much of our Social Security income can be exempted are contradictory/unclear. (See instructions below.) I read the calculations form for my Federal AGI and figured maybe Turbotax is doing it right. The first sentence of explanation would indicate so. But if that's true, then Example 1 of the instructions makes no sense, because they're allowing that single individual to deduct all their SS income. Instructions from NM:
"LINE 24. Exemption for social security income. Enter the amount of social security income included in your Adjusted Gross Income (federal AGI)...
Example 1. Taxpayer A is filing single and has an AGI of $99,500 which includes social security income of $80,000. The taxpayer is able to claim an exemption for the $80,000 since their AGI is not above $100,000.
Example 2. Taxpayer B is filing single and has an AGI of $150,000... does not qualify for the social security exemption because their AGI is over the $100,000 maximum for their filing status."
As you can see in Example 1, the amount of the exemption = the amount of Social Security income. Which group of people would Example 1 be correct for? People for whom all of their Social Security income would be taxable as part of their AGI? People earning more than 80k annually in Social Security? (And are there such people?)
