New Mexico allows you to exclude your retirement income of up to $8,000 based off of your filing status and your federal adjusted gross income if you meet one of the following:
- You are 65 or older
- You are not 65, but are considered blind for federal tax purposes
- An enrolled member of a NM federally recognized Indian nation, tribe or pueblo who domiciled in the boundaries of the reservation or pueblo grant and;
- Your retirement or pension is a result of employment
This is an automatic deduction calculated by the program once all of your information has been entered.
Note: You may not exempt retirement or pension income from employment outside the boundaries of your reservation or pueblo grant or outside the boundaries of land defined as “Indian country”.
See also Is my military pension/retirement income taxable to New Mexico?