The following information provides information about credits for working families in New Mexico. If you qualified at the federal level for this credit, you will be allowed 10% of that credit for New Mexico.
EARNED INCOME TAX CREDIT (EITC)
Rate (Fully-Refundable): 10% of the federal credit1
Eligibility Requirements: All New Mexico taxpayers who qualify for the federal credit are automatically eligible.
Latest Legislative Action: During the 2016 legislative session, lawmakers considered a bill that would have doubled the state’s EITC, known as the Working Families Credit, to 20% of the federal credit. However, the bill did not advance out of committee.
Notes: After being introduced at 8% in 2007, the Working Families Tax Credit was increased to 10% during a special session of the legislature, which Governor Bill Richardson called for the purpose of providing tax relief to New Mexico families.
Active duty income earned by active duty members of the armed forces is exempt from New Mexico’s personal income tax. File a PIT-1 resident tax return and use a PIT-ADJ schedule to deduct any military active duty pay. If the military pay is all you have and it is exempt, there is no indication you would not be allowed the credit. You are required to file.
For more information about your New Mexico state income tax return you can select your state below. https://ttlc.intuit.com/replies/3302452