TurboTax indicates my NM state return has not been filed due to "Reject Code TY25_NM_Capital_Gains"--the fix for this should be released on 2/26/26. Is there an update?

[LeticiaF1]

Yes, there was an update to the New Mexico tax returns that had Form PIT-ADJ capital gains. This update was released on February 26, 2026.  

Log in to ensure your product has been updated (online versions update automatically). Once updated, review the New Mexico capital gains deduction by going through the New Mexico return and clarify the type of capital gain deductions, complete a final review and resubmit your return.

[beccaporter]

The update does not appear to be updated as it’s March 4th and I am still receiving the same

error.

 Any assistance would be appreciated.

[BTaxFreeTax]

I've attemped multiple times to follow the guidance provided, with no luck. 

1. Can you advise how I can ensure the product has been updated for my online version?

2. Could you please explain the steps on how to fix the issue?  I am unsure how to "clarify the type of capital gain deductions".   

Thank you

[beccaporter]

Is there an update?  It is March 7th, and I'm still receiving this message:  The New Mexico tax return has not been e-filed due to a pending product update related to Form PIT-ADJ capital gains. This update is scheduled for release on February 26, 2026. On or after that date, please log in to ensure your product has been updated (online versions update automatically). Once updated, review the New Mexico capital gains deduction by going through the New Mexico return and clarify the type of capital gain deductions, complete a final review and resubmit your return.

Please provide information on how to resolve this and file my NM state taxes.  I've already paid turbo tax for state tax filing, and this is holding up the completion of filing. 

[BTaxFreeTax · Accepted solution]

I called into TurboTax again this weekend and was told the product update has applied.

Since clicking "fix my return" was not guiding me to the actual area needing updates, here is what the TurboTax agent had me do:

1) Clear my cache and cookies

2) Delete my NM State taxes to start over

3) On the Capital gains section, I did have to change the amount manually (it was pulling a higher dollar amount than what should have populated)

Redoing the State Tax was fairly easy for me, since it still pulled the data from the Federal Return

It did not charge me again since I previously paid. If ithe system tried to charge me again, I was told to call in before accepting. Connecting with an Agent on the phone may be worth it if you'd like them to guide you through the first 2 steps. 

This is not professional advice (I am just a Turbotax customer), but I can confirm my NM return was accepted after following the above steps to redo my state taxes. 

[CatinaT1]

Clear Cache and Cookies and resubmit your state return.

[beccaporter]

Thank you!  This was actually helpful advice. Much appreciated that you took the time to respond.  Have a wonderful day!