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Level 2
posted Mar 3, 2024 6:02:00 PM

I live in NM part time & TX the rest of the time. Claimed part time residency in NM State return. I earn all my income in TX. How do I calculate the NM income portion?

Texas does not have state returns. Do I cut the income in half between states?

0 7 1892
1 Best answer
Expert Alumni
Mar 12, 2024 7:23:26 AM

New Mexico is pretty clear on their law.  They leave no room for not paying taxes on the income.  As long as your primary home is in NM, they are taxing all of your income.  Staying in a hotel or driving back and forth to work will not count as you being a resident of another state.  You would actually have to set up a home and make it your primary home, not just your second home.  

 

 

 

"Part-Year Resident You are a New Mexico part-year resident if you meet all of these conditions:

  • You were a New Mexico resident for part of the year. 
  • You were not physically present in New Mexico for 185 days or more. 
  • On December 31, you were no longer domiciled in New Mexico and you had moved to another state, intending to maintain domicile status in that other state.

Resident For purposes of the Income Tax Act, you are a New Mexico resident if either of the following are true

  •  Your domicile was in New Mexico for the entire year or; 
  •  You were physically present in New Mexico for a total of 185 days or more during the tax year, regardless of your domicile."  New Mexico Personal Income Tax Instructions

7 Replies
Expert Alumni
Mar 3, 2024 6:07:22 PM

Please clarify, when you say you claimed part-time residency in NM, do you mean you are filing a part-year tax return?  

Level 2
Mar 5, 2024 10:31:02 AM

I guess that is part of my question since I’m not sure if I’m doing this correctly.  I lived part time in New Mexico and the other part in Texas.  Could I file a part year state tax return?

Expert Alumni
Mar 5, 2024 11:25:26 AM

Is Texas your official state of Residency?  Driver's license, bank, voting, etc.

 

If so, you could file a Non-Resident return for New Mexico, to report income earned there or tax paid there.

 

However, since you state that you earned all your income in Texas, why do you feel you need to file a New Mexico return?   It sounds like you spend part of the year in each state, but are not actually moving from one state to the other. 

 

Here's some info on What is My State Residency Status? and Why Would I File a Non-Resident Return?

 

@the4bears- 

Level 2
Mar 8, 2024 3:29:51 PM

@MarilynG1 

I didn’t have a place to stay in Texas for part of the year. Before that I’d drive everyday to my job. I do not have state residency in Texas, I do not vote in Texas or have my drivers license in Texas.  Definitely thinking about it now. So yes basically now living in Texas. All I have in Texas is my car payment.  When I was doing my state income it had my federal income total and asked me to put in how much I wanted to put in for my New Mexico State income total.   Since I did not exactly live there much of the year but my permanent address and ID are in NM, I still thought I had to pay state taxes. 

Expert Alumni
Mar 8, 2024 5:15:44 PM

Based on the information you are providing here, no permanent residence in Texas, but your permanent address and ID are in NM, you would need to file a full year resident return for NM.  

 

Being away in Texas is a temporary absence.  This means, you still only have on home state.  If you were working in a state other than Texas, that had income taxes, then you would have to file a non resident return for that state and a resident return for NM.  But since Texas does not have income tax, you will only need to file a NM resident return which will include all of your income from all sources.  

Level 2
Mar 9, 2024 10:55:22 AM

@Vanessa A So I wouldn’t be able to claim part time resident either? Since I stayed in Texas part time? I was hoping the fact that I stayed in Texas part time then all my income was in Texas would change the full time resident status.  I still don’t want to move from NM and will be living part time in Texas. So then I’d need to change something to Texas to be a Part time resident in NM? Thank you for all the information, it’s very helpful. 

Expert Alumni
Mar 12, 2024 7:23:26 AM

New Mexico is pretty clear on their law.  They leave no room for not paying taxes on the income.  As long as your primary home is in NM, they are taxing all of your income.  Staying in a hotel or driving back and forth to work will not count as you being a resident of another state.  You would actually have to set up a home and make it your primary home, not just your second home.  

 

 

 

"Part-Year Resident You are a New Mexico part-year resident if you meet all of these conditions:

  • You were a New Mexico resident for part of the year. 
  • You were not physically present in New Mexico for 185 days or more. 
  • On December 31, you were no longer domiciled in New Mexico and you had moved to another state, intending to maintain domicile status in that other state.

Resident For purposes of the Income Tax Act, you are a New Mexico resident if either of the following are true

  •  Your domicile was in New Mexico for the entire year or; 
  •  You were physically present in New Mexico for a total of 185 days or more during the tax year, regardless of your domicile."  New Mexico Personal Income Tax Instructions