The Taxation and Revenue Department began accepting 2023 New Mexico Personal Income Tax returns on Monday.
Starting this year, New Mexico families will be able to claim a new child tax credit that can be worth up to $600 per qualifying child. The credit gradually decreases in value as income rises. This new child tax credit is expected to provide an estimated $180 million total to 292,000 families statewide.
“We know child tax credits reduce childhood poverty, so this is another critical step to lift up New Mexico families,” said Gov. Michelle Lujan Grisham.
The credit is refundable, ensuring that taxpayers receive the full value even if it exceeds their tax liability.
“We’re very excited about this new credit, which will provide more financial stability for thousands of New Mexico families,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.
Paper returns are due this year on April 15. Taxpayers who file and pay electronically have until April 30.
Taxpayers are encouraged to file early and electronically, either through a commercial service or directly on the Department’s Taxpayer Access Point (TAP) website for free. Filing electronically minimizes delays in processing and results in faster refunds. Filing early lessens the chances of being affected by a fraudulent return being filed in your name.
The special rebates and relief payments issued by the Taxation and Revenue Department in 2023 do not need to be declared as income for New Mexico income tax purposes. However, the rebates may have federal income tax implications for taxpayers who itemize on their federal returns rather than claiming the standard federal deduction. Those taxpayers who itemize on their federal return should have received a form 1099-G from the department with the amount of their rebates and any state tax refunds.
A variety of refundable rebates and credits are available to low- and moderate-income New Mexicans that can substantially reduce tax liability and increase refunds. Taxpayers should be sure to read the Personal Income Tax instructions carefully to see if they qualify for such programs as the Working Families Tax Credit, the Low-Income Comprehensive Tax Rebate and others.
New Mexicans who aren’t required to file an income tax return because they are below the IRS income threshold may find it beneficial to file a state return. Refundable credits and rebates such as the Property Tax Rebate for low-income seniors and the Medical Care Credit may result in tax refunds even for residents who have had no tax withheld during the year.
The department may reach out to taxpayers by mail to verify personal income tax returns to combat identity theft. It will not contact taxpayers by phone unsolicited, except when conducting collection efforts. Once the requested information is received, confirming identity can add six to eight weeks to processing time.