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Eligibility:

New Mexico has a "Low-income Comprehensive Tax Rebate" for certain state income taxpayers. It has similarities to other state Earned Income Credit (EIC) programs but, unlike other states, New Mexico's program is not directly related to the federal EIC program.

To qualify you must:

• Have been physically present in New Mexico for six months or more during the tax year;
• You must have been a resident of New Mexico on the last day of the tax year; and
• Your modified gross income must be less than $22,000. 
• Not be eligible for or claimed as a dependent on someone else's current year tax return
• Not been an inmate of a public institution for more than 6 months during the current tax year

This rebate has some similarities to an earned income credit, but does not use the federal EIC as a basis for claiming the tax credit.

Claim amount:

This tax credit is refundable, which means it will first be used to lower or eliminate any state income tax you might owe and if the credit is larger than what you owe in state tax the amount will be refunded to you. The credit amount ranges approximately between $10 - $320, depending upon a taxpayer's modified gross income and number of exceptions claimed on the state income tax return.

How to obtain state income tax forms and instructions:

Click on the link to visit the New Mexico Taxation and Revenue Department web site to find the appropriate tax forms and instructions you will need.

Some additional things to know about the State of New Mexico's tax credit:

• The New Mexico state income tax return, like the federal tax return, is due on or about April 15th each year, for the preceding January-December calendar year.

• State income tax forms can usually be picked up wherever federal tax forms can be obtained (e.g., post offices, libraries, etc).

• You can usually receive assistance in completing state tax returns at sites that assist taxpayers in completing federal returns. For example, see our information on Central New Mexico Community College's Tax Help New Mexico program - locations are available in many areas of the state.