NM exemptions changed for 2025?

[biggap]

Did the NM medical exemptions eligibility change this year? We are now non-residents, but one spouse consults periodically in NM, and thus generates NM income. We used to be able to deduct our Long Term Care premiums, and now that we are over 65, our Medicaid Part B premiums. Instructions for PIT-ADJ implies that these are still available, but the number I entered was rejected for being greater than an amount that I can't find explained anywhere. 

Similarly, the net capital gains deduction used to be 50% of the total, now it appears to be "up to" a specific amount that I also can't find explained. 

[MindyB]

For the 2025 tax year, New Mexico implemented new limits on the deductions you previously used. 

The state now has a cap on the "Additional Exemption for Persons 65 or Older." You can only claim $3,000 per person if you paid unreimbursed and uncompensated medical care expenses of $28,000 or more during tax year 2025. 

As far as capital gains, for general gains (stocks, etc.), the deduction is now capped at a flat $2,500. As an exception, you can only take a larger percentage deduction if the gain came specifically from the sale of a New Mexico-based business. If your gain isn't from a local NM business, the maximum you can enter is $2,500.

As non-residents, these exemptions are further reduced based on the percentage of your income that actually comes from New Mexico.

Here are the instructions for NM adjustments: 2025 PIT-ADJ Instructions and for non-resident allocations: 2025 PIT-B Instructions