What type of income needs to be added to my New Mexico return?

NM 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 means all federally tax-exempt interest and dividends reported on IRS Forms 1040 or 1040A 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 IRS Form 1040. Enter as a positive amount. The federal net operating loss carry-forward is added to the income you reported on line 9 of the Form PIT-1 because 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 NM Education Trust Fund:

Enter the amount of contributions refunded to you during the tax year from the New Mexico Education Trust Fund (from one of the New Mexico-approved Section 529 college savings plans) if you closed a New Mexico-approved Section 529 college savings plan account, and enter contributions rolled-over from a New Mexico-approved Section 529 college savings plan account to a non-New Mexico-approved Section 529 college savings plan account. Do this only if you deducted the Contributions to a New Mexico-approved Section 529 Plan on Schedule PIT-ADJ of an earlier New Mexico personal income tax return. Do not include earnings refunded. 

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

1. State Section
2. Additions to Income

For additional information pertaining to Schedule PIT-ADJ, please click here.