Do I need to pay capital gains and dividend taxes in a state where I worked remotely for about 4 weeks?

[kburchfiel]

In 2020, I was a resident of Indiana (and then New York when I moved there permanently in August), but I also spent about 5 weeks in New Mexico as a nonresident. I worked remotely in New Mexico for my Indiana job for about 4 of those weeks.

While I was in New Mexico, I received some dividend/interest income from various mutual funds and ETFs. These funds regularly pay dividends/interest throughout the year, usually on a monthly or quarterly basis.

Do I need to pay New Mexico income taxes on those dividends/interest income? For instance, I received some capital gains from a mutual fund in New Mexico while I was visiting family for Christmas, since this fund distributes capital gains at the end of the year. (I didn't sell the fund--the fund itself produced some capital gains through its own stock sales.)

Thank you for your assistance!

[ColeenD3]

No. 

Do I need to file?

New Mexico’s law says every person who has income from New Mexico sources and who is required to file a federal income tax return must file a personal income tax return in New Mexico.

You must also file a New Mexico return if you want to claim:

• a refund of New Mexico state income tax withheld from your pay, or
• New Mexico rebates or credits.

Nonresidents, including foreign nationals and those who reside in states that do not have income taxes, must file when they have both a federal filing requirement and income from any New Mexico source whatsoever.

A member of the military who was a resident of New Mexico at the time of enlistment and has not changed the state of residency must file a New Mexico income tax return.

The income of members of an Indian nation, tribe or pueblo who work or live on lands outside the Indian nation tribe or pueblo of which they are members are subject to New Mexico income tax.

For additional information refer to the frequently asked questions (FAQs).