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

NMtaxpayer · ‎March 25, 2021

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!

SusanY1 · ‎March 31, 2021

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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View solution in original post

SusanY1 · ‎March 31, 2021

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"

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