There are some new benefits for New Mexicans preparing to file their 2021 personal income tax returns, according to a press release from the state’s Taxation and Revenue Department.
According to the release, benefits for low- and moderate-income New Mexicans that have been expanded include:
- The Working Families Tax Credit, which is now worth 20 percent of the federal earned income tax credit and is now available to taxpayers who file using an individual tax identification number (ITIN). That particular tax credit’s also available to taxpayers between the ages of 18 and 25 with or without children. Eligibility depends on earned income and family size.
- The Low Income Comprehensive Income Tax Rebate, which is now available to taxpayers with up to $36,000 in modified gross income. The average rebate is expected to rise from $78 to $195.
Taxpayers may receive a refund back from the state in both cases, even if they don’t have any tax liability, per the release.
There’s also a new personal income tax rate of 5.9 percent (up by one percentage point from the previous number) for those with taxable incomes above $210,000 for singles and above $315,000 for married couples filing jointly.
The Taxation and Revenue Department started accepting 2021 returns, which are due by April 18.
For more information on preparing taxes, visit uwcnm.org/tax-help-new-mexico.