Category: New Mexico
New Mexico Child Day Care Credit
The Child Day Care Credit may not exceed $1,200 ($600 for a married taxpayer filing a separate return).
To claim the credit you must:
- have a Modified Gross Income of $30,160 or less;
- be a resident of New Mexico during the tax year;
- furnish over half the cost of maintaining a household for one or more qualifying dependent for that part of the tax year for which the rebate is claimed (either separately or jointly with a spouse);
- be gainfully employed for that part of the tax year for which the credit is claimed. If they file a joint return, both spouses must have been gainfully employed unless one was disabled for that part of the tax year for which the credit is claimed;
- not be a recipient of public assistance under the Temporary Assistance for Needy Families program (TANF), the New Mexico Works Act or similar program, during that part of the tax year for which the credit is claimed, and
- not have been reimbursed or compensated for the amount of child day care expense for which a credit is being claimed. Reimbursed or compensated child day care expenses like those paid with pre-tax dollars under cafeteria and similar benefit plans are also ineligible.
Note: The Department checks with appropriate state agencies to verify whether a claimant is receiving public assistance.
No credit can be claimed for amounts paid to a caregiver unless the caregiver:
- was at least 18 years old at the time care was provided;
- provided the day care service within New Mexico;
- provided day care for fewer than 24 hours daily; and
- could not be claimed as a dependent by you or your spouse for federal income tax purposes.
A husband and wife maintaining a household for one or more qualifying dependents, but filing separate returns for a tax year may each claim only half the credit allowed for a joint return.
For additional information pertaining to the Child Day Care Credit, please see Form PIT-RC.