Category: New Mexico
New Mexico Military Filing Information
New Mexico’s law says every person who has income from New Mexico sources and who is required to file a federal income tax return must file a personal income tax return in New Mexico.
Filing Requirements: Residents
If you are a New Mexico resident, you must file a New Mexico return if you meet any of the following conditions:
• You have to file a federal return.
• You want to claim a refund of any New Mexico state income tax withheld from your pay.
• You want to claim any New Mexico rebates or credits.
Filing Requirements: Non-residents
Non-residents, including foreign nationals and persons who reside in states that do not have income taxes must file a New Mexico return when they have a federal filing requirement and have income from any New Mexico source whatsoever.
If you are a member of the United States armed forces, were a resident of New Mexico at the time of enlistment, and have not changed your legal residence for purposes of withholding state income tax from military pay, the amount of your military pay that is subject to federal income tax is also subject to New Mexico income tax. You are required to file a resident return and claim a deduction for military active duty pay included in federal adjusted gross income.
You are still a New Mexico resident if your permanent home (domicile) was in New Mexico when you entered the military, and you kept New Mexico as your legal residence for state withholding tax purposes. File a New Mexico resident return even if you are presently serving outside New Mexico.
Your military pay is not subject to New Mexico income tax if your permanent home (domicile) was in New Mexico when you entered the military, but you have established domicile in another state and changed your legal residence for withholding state income tax.
Military pay of an enrolled member of an Indian nation, tribe or pueblo is exempt when the servicemember’s home of record is on the lands of that Indian nation, tribe or pueblo and the legal residence for state withholding tax purposes has not been changed.
Military Servicemember’s Spouse
Beginning with the tax year 2009, the Military Spouses Residency Relief Act allows a military servicemember’s spouse, who moves to a state solely to be with their spouse who is in that state because of military orders, to keep the residency status of their state of domicile and allocate their non-military wages, salaries, tips and other income from services performed, to their state of residence, even if it was earned in another state.
Certain restrictions apply:
• The servicemember and spouse must have declared "legal residence for purposes of withholding state income taxes from military pay" in the other state.
• The servicemember and spouse must be in the state in compliance with military orders.
• The servicemember’s spouse must be in the state solely to be with their spouse.
NOTE: The non-resident servicemember must continue to allocate non-military income from services performed to the state in which the income was earned.
A resident of New Mexico who is a qualifying servicemember’s spouse living in another state, completes New Mexico Form PIT-1, as a resident taxpayer and allocates wages, salaries, tips and other income from services performed on Schedule PIT-B, as if from New Mexico sources. They do so, even if the income was earned in another state.
A non-resident of New Mexico who is a qualifying servicemember’s spouse living in New Mexico, completes New Mexico Form PIT-1, as a non-resident taxpayer and allocates income from services performed in New Mexico to their state of residence on Schedule PIT-B. A part-year or first-year New Mexico resident who is a qualifying servicemember’s spouse allocates income from services performed in New Mexico to New Mexico during periods in which they were residents of New Mexico.
A military servicemember’s spouse, who is eligible to claim an exempt New Mexico withholding status based on the Military Spouses Residency Relief Act, must annually submit Form RPD-41348, Military Spouse Withholding Tax Exemption Statement, to the employer or payer responsible for withholding New Mexico tax. A copy, signed by the employer or payer, must be kept in the taxpayer’s records. Do not submit Form RPD-41348 with Form PIT-1 unless the Department requests the copy. A new Form RPD-41348 must be signed by the employer or payer annually, or when the military servicemember’s spouse situation changes.
If you qualify for a federal or state extension for military personnel deployed in a combat zone, special instructions and backup are required. See publication FYI-311, Military Extensions for New Mexico Personal Income Tax, for details.