You must file a New Mexico income tax return if you are required to file a federal income tax return and you are either a New Mexico resident or have income from New Mexico sources.
Residents
If you are a New Mexico resident, you must file a New Mexico return if any of the following apply:
- You are required to file a federal income tax return.
- You want a refund of New Mexico income tax withheld from your wages.
- You want to claim New Mexico rebates or tax credits.
Nonresidents
If you are a nonresident, you must file a New Mexico return if both of the following are true:
- You are required to file a federal income tax return.
- You received income from any New Mexico source.
New Mexico-source income may include wages, self-employment income, rental income, royalties, business income, or income from an estate or trust.
Military Servicemembers
Military servicemembers generally must file a New Mexico resident return if both of the following apply:
- New Mexico was your domicile (permanent home) when you enlisted.
- You have not changed your legal residence for state income tax withholding purposes.
Special rules may apply if you changed your domicile to another state, are a military spouse, or are a member of a federally recognized New Mexico tribe or pueblo.
Filing Status
New Mexico requires you to use the same filing status on your state return that you used on your federal return.
Is New Mexico a Community Property State?
New Mexico is a community property state.
In a community property state, most property, income, assets, and debts acquired during a marriage are considered jointly owned by both spouses unless classified as separate property.
Married Filing Separately
When married taxpayers file separate returns, each spouse generally must report:
- 50% of community income.
- 100% of income generated from their own separate property.
Exception to Community Income Splitting
You may not need to report half of certain community income, such as wages, salaries, professional fees, business income, partnership income, or Social Security benefits, if all of the following conditions are met:
- You and your spouse lived apart for the entire year.
- You and your spouse did not file a joint return.
- Both spouses had wages, salaries, or professional fees that are community income.
- Neither spouse transferred wages, salaries, or professional fees to the other spouse during the year.
If you meet all of these requirements, you may still need to split other types of community income, such as dividends, rental income, royalties, and capital gains.
Other Community Property States
In addition to New Mexico, the following states are community property states:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- Texas
- Washington
- Wisconsin
If you're married filing separately, divorced during the year, or have income connected to more than one state, you may need to attach a statement showing the proper division of community and separate income.