Filing your 2019 New Mexico state income tax return can seem overwhelming, but knowing the requirements and process will make it much easier. Whether you are a resident, part-year resident, or nonresident with income from New Mexico sources, you must meet specific obligations under the New Mexico Taxation and Revenue Department’s rules. This guide explains those requirements, how they connect to your federal income tax return, and how to avoid costly mistakes.
The purpose of this guide is to simplify the filing process for all taxpayers, from individuals to small business owners. It outlines the forms you need, the deductions and credits you may qualify for, and the step-by-step process to complete and submit your state income tax return. You will also find tips for using the New Mexico Taxpayer Access Point (TAP) to file and pay electronically and advice on when to seek help from a tax professional.
Filing accurately and on time is essential to avoid penalties, interest, and delayed refunds. Correctly preparing your return ensures you claim every benefit available, comply with state tax laws, and maintain organized records for the current tax year and beyond. Whether you choose e-filing for faster processing or traditional paper submission, following the proper steps will make your NM tax filing smooth and stress-free.
Overview of New Mexico State Income Tax for 2019
Who Needs to File
- New Mexico residents with federal filing requirements: If you are a resident and must file a federal return, you must file a New Mexico state income tax return. This includes individuals living in the state full-time or part-time and temporarily away but maintaining residency in New Mexico.
- Non-residents with New Mexico income: If you live outside the state but earn income from New Mexico sources, you must file a state return. This applies whether you live in another state with or without an income tax and includes situations where you must also file a federal return.
- Military personnel with New Mexico residency: Service members who enlisted as New Mexico residents and have not changed their residency status must file a state return. This requirement applies even if they are stationed outside the state for active duty.
- Small business owners and self-employed individuals: If you own a business or earn self-employment income in New Mexico, you must file a state income tax return. In addition, you may also be responsible for paying gross receipts tax, which applies to certain goods and services sold within the state.
Income Thresholds and Filing Status
Your federal adjusted gross income is the starting point for calculating your New Mexico personal income tax. The state offers exemptions to reduce taxable income for qualifying taxpayers:
- Single filers: Federal AGI of $36,667 or less qualifies for the low- and middle-income exemption, reducing taxable income by up to $2,500 per exemption.
- Married filing separately: A federal AGI of $27,500 or less qualifies for the same benefit, helping reduce your overall state tax owed.
- Married filing jointly, head of household, or qualifying widow(er): A federal AGI of $55,000 or less qualifies for the exemption, which can be especially valuable for families with multiple dependents.
Key Changes from 2018
For the 2019 tax year, several changes affected how taxpayers calculated and reported their state taxes:
- Working Families Tax Credit increase: The credit rose from 10% to 17% of the federal Earned Income Tax Credit, providing more relief for low-income taxpayers.
- New dependent deduction: Due to the suspension of the federal personal exemption, taxpayers filing jointly as head of household or married filing jointly could deduct $4,000 for certain dependents.
- Capital gains deduction reduction: The deduction for capital gains decreased from 50% to 40%, affecting taxpayers with investment income.
- New top tax bracket: A 5.9% rate applied to income over $315,000, impacting higher-income taxpayers.
Filing Deadlines for 2019 Returns
Understanding the due dates for the 2019 New Mexico state income tax return is essential to avoid late-filing penalties and interest charges. The state’s deadlines varied depending on whether you filed electronically or by paper and whether you also submitted payment online. Federal extensions also applied to state returns, but payment deadlines remained firm to prevent penalties.
- Standard paper return deadline: April 15, 2020, was the due date for taxpayers submitting a paper return by mail, regardless of whether payment was included.
- Electronic filing with online payment: Taxpayers who used the New Mexico Taxpayer Access Point system to file and pay had until April 30, 2020, to do so electronically. This extension applies only if both filing and payment were completed online.
- Federal extension to October 15, 2020: New Mexico honored the federal filing extension if you filed IRS Form 4868. However, any taxes owed still had to be paid by April 15, 2020, to avoid penalties and interest.
- Late-filing penalty: A 2% charge on unpaid taxes per month or part of a month, up to a maximum of 10%, applied for late returns.
- Interest charges: Interest accrued on unpaid taxes from the original due date until payment was made in full.
Filing on time, even without full payment, prevents additional penalties and allows you to request a payment arrangement with the New Mexico Taxation and Revenue Department if needed.
What Forms You Need
Filing your 2019 New Mexico state income tax return starts with selecting the correct forms. All taxpayers required to file must complete the primary return, but depending on your income sources, residency status, and deductions, you may also need to attach additional schedules. Choosing the proper forms ensures your return is processed without delays and you have all deductions and credits you are entitled to.
Main Form PIT-1
- PIT-1 (New Mexico Personal Income Tax Return): This is the primary form for all residents, part-year residents, and non-residents with New Mexico income. It must be filed whether you are owed a refund, have tax due, or are claiming. Filing the correct form ensures compliance with New Mexico’s tax laws and accurate calculation of your state tax liability.
Common Schedules and Supporting Forms
- PIT-ADJ (Additions, Deductions, and Exemptions): Used to report certain New Mexico deductions and exemptions, such as military active duty pay, significant medical expenses, or retirement income exemptions. This form helps reduce your taxable income.
- PIT-B (Allocation and Apportionment of Income): Required for non-residents with New Mexico income or residents earning income from other states. It ensures that only the correct portion of your income is taxed by New Mexico.
- PIT-RC (Rebate and Credit Schedule): Used to claim state rebates and credits such as the Low-Income Comprehensive Tax Rebate, property tax rebates for seniors, child day care credit, or medical care credits. Completing this form correctly can increase your refund or reduce taxes owed.
- PIT-CR (Non-Refundable Credits): Allows taxpayers to claim certain specifics or individual tax credits that reduce tax liability but do not result in a refund.
- PIT-X (Amended Return): This form corrects a previously filed return. Filing this form ensures that errors are fixed and your tax record remains accurate.
When preparing your return, carefully review the instructions for each form to determine whether you need to include additional schedules. Omitting required forms can delay processing or result in the denial of the credits.
Step-by-Step Instructions to Complete Your Return
Step 1: Gather Your Required Documents
Collect your federal tax return (Form 1040), all W-2s and 1099s, records of estimated tax payments made during 2019, and documentation for any deductions or credits you plan to claim. Having everything in place prevents delays, reduces data entry errors, and helps ensure your New Mexico state income tax return is accurate the first time.
Step 2: Complete Your Personal Information
Enter your name, address, and Social Security Number as they appear on your federal return. Your filing status must match your federal return, and you should list all dependents with their Social Security Numbers to secure any deductions or credits tied to dependency.
Step 3: Calculate your federal adjusted gross income
Transfer from your federal return to your New Mexico return. If New Mexico requires additions or adjustments, use the appropriate schedule to report them so your state income figure reflects New Mexico rules.
Step 4: Determine Your Deductions
Use your federal standard or itemized deduction as instructed, then add any New Mexico-specific deductions you qualify for. In 2019, this may include the dependent deduction and the low and mid-income tax burden exemption, which directly lowers your tax burden.
Step 5: Calculate Your NM Tax
Subtract your deductions from your adjusted income to determine your New Mexico taxable income, then apply the state tax tables or rates. Claim any eligible credits, such as the Working Families Tax Credit or the credit for taxes paid to another state, to reduce your final liability.
Step 6: Determine Your Amount Due or Refund
Compare your total withholdings and payments against your calculated tax. If you paid more than you owe, you will receive a refund; if you spent less, the submitted balance will be used to avoid additional penalties and interest.
Common Mistakes to Avoid
- Using a different filing status from the federal return: The state return must mirror the federal return’s filing status to be processed correctly. A mismatch can trigger delays, notices, or adjustments that slow your refund.
- Forgetting to attach required documents for paper filings: Missing W-2s, 1099s, or needed schedules can lead to denied credits or deductions. Including every required attachment helps the Taxation and Revenue Department verify your figures quickly.
- Claiming deductions not allowed by New Mexico: Some federally deductible items are not permitted at the state level. Reviewing the New Mexico instructions prevents disallowed claims and the interest or assessments that can follow.
- Overlooking the 2019 dependent deduction or low and middle income exemption: Many filers miss state-specific benefits introduced or modified for 2019. Checking eligibility can reduce your taxable income and increase your potential refund.
- Failing to sign and date a paper return: Unsigned returns are considered incomplete and may be treated as late until corrected. A quick final check for signatures avoids processing holds and penalty exposure.
How to File Your Return
Your 2019 state income tax return can be filed electronically or on paper, depending on your preference and resources. Electronic filing is generally faster and more secure, but paper is still available for those who prefer traditional submission or cannot access online services. Selecting the correct method ensures your return reaches the New Mexico Taxation and Revenue Department on time and is processed without unnecessary delays.
E-Filing (Recommended)
- Faster processing: E-filing typically results in refunds being issued within 6–8 weeks compared to 8–12 weeks for paper returns.
- Extended deadline for e-file with payment: If you file and pay through the New Mexico Taxpayer Access Point system, you have until April 30, 2020.
- Free filing options: Taxpayers can use the electronic submission of their state return, the TAP system, approved commercial tax software, or authorized tax professionals to electronically file. Electronic filing provides instant proof of submission, reducing uncertainty about whether your return was received.
Paper Filing
Paper filing may take longer, but it remains a valid option for taxpayers who prefer a physical submission or cannot file electronically. Accuracy is especially important to prevent processing delays when filing by paper. You must attach all required forms, W-2s, 1099s, and schedules, and sign and date the return before mailing.
- Returns with payment:
NM Taxation and Revenue Dept.,
P.O. Box 8390,
Santa Fe, NM 87504-8390
- Returns without payment:
Personal Income Tax Correspondence
Taxation and Revenue Department
P.O. Box 25122
Santa Fe, NM 87504-5122
- General correspondence:
P.O. Box 630,
1200 South St. Francis Drive
Santa Fe, NM 87504-0630
Paper returns generally take 8–12 weeks to process, so they are less ideal if you expect a refund quickly. If you file close to the deadline, consider certified mail or another trackable delivery method to confirm timely receipt.
How to Make a Payment
You have several payment options if you owe taxes on your 2019 New Mexico state income tax return. The Taxation and Revenue Department accepts electronic and paper payments, allowing you to choose the best method for your needs. Paying on time is critical to avoid penalties and interest, even if you cannot pay the full amount immediately.
Online Payment Options
- Taxpayer Access Point (TAP): The official online payment portal allows you to pay directly from your checking or savings account via electronic check (ACH) at no cost. You can schedule your payment for a future date, access payment history, and receive immediate confirmation.
- Credit or debit card payments: These are available through these vendors linked from the TAP site. These payments may include a convenience fee charged by the vendor. Flexibility is available if you prefer card transactions.
- 24/7 availability: Online payment services are accessible anytime, making it easy for last-minute submissions before the due date.
Payment by Check
- Make payable to: All checks should be payable to the New Mexico Taxation and Revenue Department. This ensures your payment is routed to the correct state agency for processing and credited to your account without delays.
- Include identifying information: Write your Social Security Number or ITIN, the tax year, and your phone number on the check. This information helps the department accurately match your payment to your tax account and avoid processing errors.
- Mailing with your return: If mailing your payment with your completed tax return, send both to the “returns with payment” address listed in the filing instructions. If sending the payment separately, mail it to the same address along with the required payment voucher to ensure proper credit.
Important Payment Deadlines
- Paper returns: Payment for paper-filed returns is due by April 15, 2020, regardless of whether you request a federal filing extension. Missing this deadline may result in penalties and interest being applied to your account.
- Electronic filing with e-payment: If you file electronically and pay through the Taxpayer Access Point (TAP), you have until April 30, 2020, to submit your return and payment. This extra time is only available when both actions are completed online.
- Estimated taxes for 2020: The first quarterly tax payment for 2020 was due April 15, 2020. Timely estimated payments help you avoid underpayment penalties and keep your account in good standing throughout the tax year.
Pay at least 90% of your current year’s tax or 100% of the previous year’s liability to avoid underpayment penalties. If you cannot pay in full, submit your return on time and contact the New Mexico Taxation and Revenue Department to request a payment plan.
How to Track Your Refund or Balance Due
After filing your 2019 New Mexico state income tax return, you can easily track your refund or check your balance due through the New Mexico Taxpayer Access Point system. Knowing the status of your return helps you plan your finances and ensures there are no unexpected delays.
“Where’s My Refund?” Tool
- Easy access: You can check your refund status by visiting the New Mexico TAP website, selecting the “Personal Income” option, and clicking “Where’s My Refund?” This online tool allows taxpayers to get updates quickly without calling the department, helping reduce wait times and improve convenience.
- Information needed: Enter your Social Security Number or ITIN and the exact expected refund amount to use the tool. No account creation is required, making it accessible for all taxpayers and especially advantageous for those who want quick updates without extra steps.
Processing Times
- Electronic returns: Refunds from electronically filed returns are typically processed within a few weeks. Choosing direct deposit when you e-file is the fastest way to receive your money, often cutting processing time significantly compared to paper returns.
- Paper returns: Paper-filed returns generally take 8–12 weeks due to manual review and mailing times. This longer timeline can delay refunds, so e-filing is recommended for faster turnaround.
- Possible delays: Returns may be delayed if additional identity verification is required, if documents are incomplete, or if there are errors in the filing. Addressing these issues promptly can minimize extended wait times for your refund.
When to Contact the Department
If you have not received your refund or confirmed payment after the full processing timeframe, contact the New Mexico Taxation and Revenue Department with your Social Security Number, filing status, refund amount, and any correspondence you have received.
- Phone: 1-866-285-2996 (Monday–Friday, 8 AM–4:30 PM MT)
- Email: TRD.TaxReturnHelp@tax.nm.gov
It is best to wait until the standard processing time has passed before contacting the department. This ensures resources are focused on completing returns and reduces unnecessary delays for all taxpayers.
Final Filing Checklist
Before submitting your 2019 New Mexico state income tax return, take a few minutes to review your documents and confirm that all required information is included. A thorough review can prevent delays, rejected returns, and lost refunds. Keep a copy of everything you submit for your records.
- Complete PIT-1 form: Ensure every section is filled out accurately, with correct figures transferred from your federal return.
- Attached W-2s and 1099s: Include all wage and income statements for paper filings so the Taxation and Revenue Department can verify your income.
- Required schedules included PIT-ADJ, PIT-B, PIT-RC, or PIT-CR if your filing situation requires them.
- Select payment method: If you owe taxes, confirm whether you will pay online, by check, or through another approved method.
- Used the correct mailing address: Match your address choice to your file—whether with or without payment, or general correspondence.
- Signed and dated the return: Unsigned paper returns are considered incomplete and will not be processed.
- Kept copies for your records: Retain a full copy of your return and all attachments for at least three years in case of an audit or verification request.
Completing this checklist before submission helps ensure your return is processed quickly and without unnecessary issues.
Frequently Asked Questions
What if I missed the filing deadline?
If you missed the April 15, 2020, deadline for paper returns or the April 30, 2020, deadline for electronic filing with payment, file as soon as possible to minimize penalties and interest. New Mexico charges a late-filing penalty of 2% per month, up to a 10% maximum, plus interest on unpaid taxes. Prompt filing reduces overall costs and prevents further collection actions.
Can I e-file for free?
Most taxpayers can e-file for free through the New Mexico Taxpayer Access Point (TAP) system. This platform also supports filing through approved commercial tax software or with a tax professional who offers electronic submission. E-filing provides immediate confirmation of receipt, reduces mailing delays, and generally results in faster refunds than traditional paper filing methods.
What deductions are most commonly missed?
Taxpayers often overlook valuable deductions on their New Mexico state income tax return, including the $4,000 dependent deduction, the low- and middle-income exemption, specific medical care expenses from licensed providers, and the military active duty pay exemption. These state-specific deductions can substantially reduce taxable income and, in many cases, increase refund amounts when claimed correctly and supported with proper documentation.
How do I request a filing extension?
New Mexico honors the federal extension when you file IRS Form 4868, giving you until October 15, 2020, to submit your state return. However, any taxes owed must still be paid by April 15, 2020, to avoid late payment penalties and interest. An extension grants more time to file paperwork but does not extend your payment deadline.
Can I file jointly if I moved mid-year?
If your federal return is filed jointly, your New Mexico state return must also use joint status. If you became or stopped being a resident during the year, you should complete Schedule PIT-B to allocate income earned in New Mexico versus other states. This ensures accurate income reporting and proper taxation for resident and non-resident periods.
What if I am a part-year resident?
Part-year residents must file a New Mexico state income tax return and use Schedule PIT-B to allocate income between the periods of residency and non-residency. You will pay New Mexico tax on all income earned while living in the state and on New Mexico-source income earned while living elsewhere. Proper allocation prevents overpayment and ensures compliance with state tax rules.
What if I have income from other states?
If you are a New Mexico resident earning income from another state, you may qualify for a credit for taxes paid to that state. To claim this credit, attach a complete copy of the other state’s tax return to your New Mexico filing. Non-residents should use Schedule PIT-B to allocate New Mexico-sourced income for proper taxation accurately.
