New Mexico Income Tax

[kmcgeo]

Does New Mexico tax Social Security payments

[DianeW777]

Yes, Social Security retirement benefits are taxable in New Mexico, but they are also partially deductible. The exemption is $2,500 for taxpayers under the age of 65. For persons age 65 and older, the deduction is $8,000.

Who is required to file?

New Mexico’s law says every person who meets both of the following conditions must file Form PIT-1, New Mexico Personal Income Tax Return:

• Every person who is a New Mexico resident or has income from New Mexico sources.
• Every person who is required to file a federal income tax return.

New Mexico sources includes the net income of every nonresident employed or engaged in business in, into or from this state or deriving any income from any property or employment within this state.