New Mexico Allocation and Apportionment of Income:
PIT-B is for taxpayers with income from sources both inside and outside New Mexico. Schedule PIT-B provides a credit against New Mexico tax equal to the New Mexico source income divided by total income everywhere.
Interest and Dividends from Federal Tax-Exempt Bonds:
Enter the interest or dividend income from all state and municipal bonds that was excluded from federal adjusted gross income. This includes all federally tax-exempt interest and dividends reported on Form 1040 or 1040SR from state and municipal obligations.
If you subtracted expenses for tax-exempt investment income on your federal return, add them back on this line to determine New Mexico taxable income. A deduction for interest and dividends of obligations exempt from New Mexico taxable income is allowed on Schedule PIT-ADJ.
Net Operating Loss Carryover
Enter the amount of any federal net operating loss carry-forward or carryback from “Other income” (line 8) of the Form 1040. A positive amount is required. The federal net operating loss carry-forward is added to the income you reported on line 9 of the Form PIT-1.
The rules for applying a net operating loss deduction to New Mexico taxable income are different from the federal rules. See the instructions for PIT-ADJ, for more information on the deduction for a New Mexico net operating loss carry-forward.
Donation of Land for Conservation Purposes:
You claimed a charitable deduction on Federal Form 1040, Schedule A for a donation of land to private non-profit or public conservation agencies for conservation purposes from which you were allowed the New Mexico land conservation tax credit. If both of the following are true, you must add back the charitable deduction amount included in the itemized deductions claimed on your federal Schedule A:
- You donated land to private nonprofit or public conservation agencies for conservation purposes from which you claimed a New Mexico land conservation incentives tax credit.
- You claimed a charitable deduction for the same contribution in the federal itemized deductions on your federal personal income tax return.
Contributions Refunded from the New Mexico Education Savings Plan:
Enter the amount of qualified contributions refunded to you during the tax year from a New Mexico approved Section 529 education savings plan account only if the contributions were deducted on an earlier New Mexico income tax return and if any of the following are true:
- You closed a New Mexico approved Section 529 education savings plan account, and received a refund of the contributions.
- You rolled over contributions from a New Mexico approved Section 529 education savings plan account to a non New Mexico approved Section 529 education savings plan account.
Tax paid by a Pass-Through-Entity on distributed net income:
Enter the amount of tax paid by a Pass-Through-Entity on distributed net income.
Program Entry
- State Section
- Additions to Income
For additional information pertaining to Schedule PIT-ADJ, please click here.