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i am inputting data for my NM state tax return i have a suspiciously large refund. i have a large LTCG for 2025. in previous years we had a 40% deduction on ltcg before it was added to the rest of income to calculate your tax liability. i found out in January that there was a change and the max for non NM based businesses was capped at $2500. i had to scramble and give additional monies at the 4th quarter estimated tax deadline for NM. I had emailed New Mexico Taxation and Revenue dept to clarify and below is their reply.   "Yes, the change to the law was passed during the 2024 session and is effective starting with the 2025 tax year. You can see the statute below.   7-2-34. DEDUCTION--NET CAPITAL GAIN INCOME.-- A. A taxpayer may claim a deduction from net income in an amount equal to the greater of: (1) the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed, but not to exceed two thousand five hundred dollars ($2,500); or (2) forty percent of up to one million dollars ($1,000,000) of the taxpayer's net capital gain income from the sale of a business that is allocated or apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978 for the taxable year for which the deduction is being claimed. B. Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the deduction provided by this section that would have been allowed on the joint return. C. As used in this section, "net capital gain" means "net capital gain" as defined in Section 1222 (11) of the Internal Revenue Code. (Laws 2024, Chapter 67, Section 8; Applicable to taxable years beginning on or after January 1, 2025)   Thank you for your inquiry,"   Turbo tax is still giving a 40% deduction to my ltcg when inputting the data. which is why i am getting a large refund that is almost exactly what i had to scramble to add on to my 4th quarter estimated tax.  how is this corrected?  

I received 1099 from a company in another State. However, I never physically visited the State and should not need to file taxes there. But TurboTax would not let me skip it and keeps coming back to the STate return forms. I went via the STate income, the system never asked me if I ever visited the State. Just kept going via the forms. I allocated 0 income to that State. But I would prefer not filing at all since I do not have to.