(The Square at Central) – The New Mexico Department of Taxation estimates that a new child tax credit of up to $600 per qualified child will save 292,000 New Mexican families approximately $180 million in taxes. For wealthy families, the value of the credit decreases.
Governor Michelle Lujan Grisham said, “This is another crucial step to lift New Mexico families. We know child tax credits reduce childhood poverty.”
People will receive the entire benefit of the tax credit, even if it exceeds their tax burden because New Mexico made it refundable.
Taxation and Revenue Secretary Stephanie Schardin Clarke stated, “We’re very excited about this new credit, which will provide more financial stability for thousands of New Mexico families.”
For state income taxes in New Mexico, paper filers have until April 15 to file their returns; electronic filers have until April 30.
“Filing electronically minimizes delays in processing and results in faster refunds,” according to a release. “Filing early lessens the chances of being affected by a fraudulent return being filed in your name.”
It will not be necessary for New Mexico income tax returns to include rebates that the Taxation and Revenue Department issues in 2023. The changes “may have federal income tax implications for taxpayers who itemize on their federal returns rather than claiming the standard federal deduction,” according to the press release.
The state also encourages low- and moderate-income citizens to learn more about the tax credits they are eligible for. It specifically asks individuals to check their eligibility for the Low-Income Comprehensive Tax Rebate and the Working Families Tax Credit, among other benefits.
“Even New Mexicans who aren’t required to file an income tax return because they are below the IRS income threshold may find it beneficial to file a state return,” the agency stated.
The state lists several reasons why citizens who do not owe state income tax can nevertheless choose to submit a return, including refundable tax credits and rebates like the Medical Care Credit and the Property Tax Rebate (for low-income seniors).