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: Enter the amount of any federal net operating loss carry-forward or carryback from “Other income” (line 21) 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 7 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.
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.
These additions can be added to your New Mexico return by following the steps below:
- State Section
- Additions to Income
For additional information pertaining to Schedule PIT-ADJ, please click here.