New Mexico families will now be able to claim a child tax credit that could give them up to $600 per child. Eligible families need to file their state tax returns to get the new child tax credit from New Mexico. New Mexico’s Taxation and Revenue Department started accepting Personal Income Tax returns yesterday, i.e., January 29.
New child tax credit from New Mexico: how to claim it
In 2022, New Mexico created its own child tax credit program, and in 2023, the lawmakers increased credit value through House Bill 547. The new credit is estimated to provide $180 million to 292,000 families across the state, according to New Mexico’s Taxation and Revenue Department.
“We know child tax credits reduce childhood poverty, so this is another critical step to lift up New Mexico families,” Governor Michelle Lujan Grisham said in a press release.
With the start of the tax filing season, eligible families will be able to claim the new child tax credit from New Mexico, which could give them $25 to $600 per qualifying child. The last date to file paper returns is April 15, while electronic returns can be filed until April 30.
New Mexico’s Taxation and Revenue Department advises taxpayers to file early and electronically. Filing electronically will minimize processing delays, as well as result in faster refunds. Filing early, on the other hand, reduces the chances of a “fraudulent return being filed in your name,” the department says.
New Mexico’s new child tax credit is refundable, which means taxpayers will get the full value even if the credit is more than their tax liability. Also, the credit is income-based, which means the credit amount decreases as income rises.
For instance, those with AGI (adjusted gross income) equal to or less than $25,000 will get the full $600, while those with AGI above $350,000 will get $25.
Note that recipients don’t need to declare the credit as income when filing their state return. The credit may have federal income tax implications for taxpayers.
How to claim a 2022 unclaimed rebate
In 2022, New Mexico sent millions of dollars in rebate payments to help residents cover the rising costs of living. As of last month, however, more than $6 million worth of rebates was unclaimed, the state’s Taxation and Revenue Department (TRD) said.
The unclaimed rebates are mostly comprised of rebate payments sent out in the mail but returned as undeliverable. Such unclaimed rebates now sit at TRD’s unclaimed property office.
If you believe you were eligible for the 2022 rebate but didn’t get it, you can search the unclaimed property database for your missing rebate payment. You need to enter your name to search the database.
If you didn’t receive the rebate, you can contact TRD at [email protected]. According to TRD, recipients need to provide their updated mailing address to get the rebate payment.
Visit the Department’s website to find out more about searching and claiming unclaimed property.
