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tmil509
New Member

New Mexico state taxes for new resident

My wife moved to New Mexico in mid September for a new job and I followed in March of 2020. Turbo Tax seems to be including all of our income from 2019, not just the income my wife earned in New Mexico when calculating the state tax, how do I fix that?

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1 Reply
DawnC
Employee Tax Expert

New Mexico state taxes for new resident

Make sure you are filing a part year return for New Mexico.  When you go through the state return, you will given an option to allocate your income for each state you file.   See the allocation link at the bottom of this post.  

 

TurboTax handles part-year returns, but you need to make sure you've set up your personal information correctly for us to do so. We'll ask about where you lived in 2019 when you set up your personal information.

 

If you need to add this information after you've begun your return:

  1. Sign in to Turbo Tax and select My Info.
  2. Personal info summary screen will pop up.
  3. Select Edit next to the top section with your name, Social Security Number, birth-date, occupation, and resident state.
  4. Question number 2 asks you the state(s) you lived in during 2019. Select your state of residence from a drop-down menu.
  5. You'll also be asked if you lived in another state in 2019. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
  6. Fill out the date of when you moved to your current state.
  7. If the rest of your information is accurate, select the blue Continue button in the lower-right corner of the screen.

After you finish your federal return, you'll automatically move to the State section, where you'll see your part-year states listed. We suggest you prepare the return for your former state first, followed by the return for the state you currently live in.

 

Important: If you also see a nonresident state return in the State section, complete that return before you work on your part-year return(s) to ensure your tax credits are calculated correctly.

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