What Are New Mexico’s Basic Qualifications to Claim Refundable Credits and Rebates?

If you're claiming refundable credits or rebates on your New Mexico return, you may need to meet one or more of the following requirements:

• You were a New Mexico resident during the tax year.
• You were physically present in New Mexico for at least six months during the tax year (this requirement does not apply to the New Mexico Child Day Care Credit).
• You were not eligible to be claimed as a dependent of another taxpayer.
• You were not an inmate of a public institution for more than six months during the tax year.

Modified Gross Income Matters

Eligibility for New Mexico rebates and credits is based on your Modified Gross Income (MGI).

Modified Gross Income includes all income and compensation from all sources for:

• You
• Your spouse
• Your dependents

This applies whether the income is taxable by the federal government or the State of New Mexico. It can include wages, Social Security benefits, pensions, public assistance, business income, capital gains, gifts, interest, dividends, child support, and other income sources.

Married Taxpayers

If you're filing jointly and only one spouse meets the general qualifications, the spouse who does not qualify is not eligible for the rebate or credit.

Special Rules for Dependents

For purposes of the Low Income Comprehensive Tax Rebate:

• Dependents who are not New Mexico residents do not qualify as household members.
• Dependents who are New Mexico residents but were not physically present in New Mexico for at least six months may still qualify as household members.

Common New Mexico Refundable Credits and Rebates

If you meet the applicable qualifications, you may be able to claim:

• Low Income Comprehensive Tax Rebate
• Property Tax Rebate for Persons Age 65 or Older
• Additional Low Income Property Tax Rebate (Los Alamos, Santa Fe, Doña Ana, or Bernalillo County residents)
• New Mexico Child Day Care Credit
• Refundable Medical Care Credit for Persons 65 or Older
• Special Needs Adopted Child Tax Credit
• Child Income Tax Credit

Program Entry

1. Go to State Section
2. Select New Mexico
3. Choose the three dots (Edit) for the New Mexico return
4. Click Credits
5. Complete the applicable credit or rebate screens and answer the qualification questions.