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

[NMtaxpayer]

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 · Accepted solution]

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).