What Is the New Mexico Child Day Care Credit?

The New Mexico Child Day Care Credit helps eligible taxpayers offset the cost of child care expenses.

For tax year 2026:

• The maximum credit is $1,200 per return.
• Married taxpayers filing separately may claim up to $600.
• The maximum credit allowed per qualifying child is $480.
• Married individuals who maintain a household for one or more qualifying dependents and file separate returns may each claim only half of the credit allowed on a joint return.

Who Qualifies?

To claim the credit, all of the following must be true:

• Your Modified Gross Income (MGI) is $30,160 or less.
• You were a New Mexico resident during some part of the tax year.
• You paid more than half the cost of maintaining a household for one or more qualifying dependents.
• You were gainfully employed during the period for which you are claiming the credit.
• You did not receive public assistance under TANF, the New Mexico Works Act, or a similar program during the period for which you are claiming the credit.
• You were not reimbursed or compensated for the child care expenses you are claiming.
• Child care expenses paid with pre-tax dollars through cafeteria plans or similar benefit plans do not qualify.
• You were not eligible to be claimed as a dependent by another taxpayer.

Residency Requirements

You may claim the credit if you qualify as a:

• Full-year resident
• First-year resident
• Part-year resident of New Mexico

Caregiver Requirements

You cannot claim the credit unless all of the following are true about the caregiver:

• The caregiver was at least 18 years old when care was provided.
• The child care services were provided in New Mexico.
• The caregiver provided care for less than 24 hours per day.
• Neither you nor your spouse could claim the caregiver as a dependent on a federal income tax return.

Important Notes

• The New Mexico Taxation and Revenue Department will verify whether you received public assistance.
• A qualifying dependent is generally a child under age 15 who received child care services.
• "Gainfully employed" means working for compensation as an employee or self-employed. Simply attending school or looking for work does not qualify.

Required Documentation

To claim the credit, you'll need:

• A completed Child Day Care Credit Worksheet
• A PIT-CG, New Mexico Caregiver's Statement, from each caregiver who provided child care services during the year

Program Entry

1. Go to State
2. Select the three dots (Edit) for the New Mexico return
3. Choose Credits
4. Select Child Day Care Credit
5. Enter the qualifying child care information and caregiver details.