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NMtaxpayer
Level 2

How to apply claim of right CREDIT to New Mexico tax return?

Hello,

 

I calculated claim of right under IRC 1341 for a credit to see who it affects my Federal refund (I had repayments to disability provider attributed to previous years). 

 

My question is how would I also apply this credit to my New Mexico state taxes? Please be specific.

 

Thank you!

1 Best answer

Accepted Solutions
SusanY1
Expert Alumni

How to apply claim of right CREDIT to New Mexico tax return?

New Mexico does not conform to the rules that allow the IRC 1341 claim of right credit.  Therefore, it is not possible to take a similar credit on your state return.

 

For taxpayers who itemize on the federal return and take the deduction for claim of right, reducing their federal AGI, there is a limited state benefit.  This is because New Mexico begins its calculation with federal AGI (and not total income).  

 

 

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1 Reply
SusanY1
Expert Alumni

How to apply claim of right CREDIT to New Mexico tax return?

New Mexico does not conform to the rules that allow the IRC 1341 claim of right credit.  Therefore, it is not possible to take a similar credit on your state return.

 

For taxpayers who itemize on the federal return and take the deduction for claim of right, reducing their federal AGI, there is a limited state benefit.  This is because New Mexico begins its calculation with federal AGI (and not total income).  

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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