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Certain tax credits are available from both the federal government and the State of New Mexico to eligible individuals and families. These tax credits can serve to lower the amount of tax you owe or, for some programs, result in receiving a cash payment even if you don't owe any taxes. Several of these programs offer substantial tax credits or payments to those who are eligible and it could be worthwhile to see if you may claim any of them.
Please note that this is not a complete list of tax credits that may be available to you.
Click on a program name for more information:
The Earned Income Credit (also called the Earned Income Tax Credit) is a federal program that provides a tax credit and frequently a cash payment to low-to-moderate income workers who qualify.
The Child Tax Credit (CTC) is a federal tax credit for low and moderate income families with dependent children under age 17. The purpose of the Child Tax Credit is to lower the tax burden of families who are raising children. The maximum CTC is $1000 per qualifying child.
This is a refundable tax credit which households with low-income can claim when filing a New Mexico state income tax return.
Free tax preparation service for those whose incomes are under $42,000 or who are 65 or older.
Recent federal tax incentives offer substantial tax credits to eligible first time homebuyers and homebuyers who have owned their principal residence for five of the last eight years. Tax credits reduce your tax bill or increase your tax refund dollar for dollar and range from a maximum of $7,500 in 2008, to a maximum of $8,000 in 2009, to a maximum of $6,500 for homes purchased between November 7, 2009 and April 30, 2010. The 2008 tax credit must be repaid in 15 annual installments at 0% interest. The 2009 and 2010 tax credits do not need to be repaid.
Many New Mexico residents will receive state income tax rebates based on 2007 tax returns. Households making over $70,000 per year are not eligible. Other households who filed a 2007 tax return will receive this rebate check automatically. Rebates range from $25 for individual taxpayers to $100 for a taxpayer and spouse filing jointly, depending on income. Additional rebates are available for dependent children, ranging from $25 to $50. You can still file a 2007 tax return if you have not done so.
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