If you claimed the standard deduction on your federal return, you cannot itemize deductions on your New Mexico return.
New Mexico requires you to use the same deduction method on your state return that you used on your federal return.
- If you claimed the federal standard deduction, you must use the standard deduction on your New Mexico return.
- If you itemized deductions on your federal return, you may use your federal itemized deduction amount on your New Mexico return.
Why Does New Mexico Require This?
New Mexico uses information from your federal return to calculate state taxable income. Because of this, the state requires consistency between your federal and state deduction methods.
What Should I Enter on My New Mexico Return?
- If you claimed the standard deduction on your federal return, enter the allowable federal standard deduction amount on your New Mexico return.
- If you itemized deductions on your federal return, enter the allowable federal itemized deductions and mark the itemized deduction box on the New Mexico return.
In short, you cannot switch from the federal standard deduction to itemizing on your New Mexico return. Your deduction method must match your federal return.