I live in TX which has no state tax. I earn oil royalties in NM. How do I pay NM taxes on ONLY the royalty money and not my adjusted AGI?

[billieblize]

Turbo tax transfers my Federal AGI to the NM state tax form and then proceeds to charge me NM taxes on my AGI instead of just my royalty money earned in NM.

[MaryK4]

New Mexico completes the state tax return using all your income, then applies the tax by percent to only your New Mexico income.

Nonresidents must file when they have a federal filing requirement and have income from any New Mexico source whatsoever.  The rates vary depending upon your filing status and income. 

[billieblize]

Then I must be doing something incorrectly because I am charged NM tax on my total AGI from my federal return.

[MaryK4]

Go back to the New Mexico state section of TurboTax and make sure you have nonresident indicated.  (See below).  Continue through the income and make sure you have indicated 0 for all non-NM income.  @billievblize