Diego Lopez, Reporter
Tax Changes are coming to benefit New Mexico’s seniors and veterans. These changes to the tax code come from the New Mexico State Legislature’s 2022 session and will mean additional tax write-offs for New Mexicans seniors and veterans.
Social Security
Starting with the 2022 tax season, which will be filed by New Mexicans in Spring 2023, most social security benefits will be exempt from the New Mexico Personal Income Tax. Seniors on social security will not have to claim these benefits when they file their taxes. Seniors making less than $100,000, or $150,000 for joint tax filers, will receive this exemption.
Because the change in tax code may be confusing for many New Mexicans, instructions will be available to the public by the New Mexico Taxation and Revenue Department, keep an eye out for these instructions. “For years, New Mexico was one of just a few states that still taxes social security benefits. New Mexico seniors deserve to hold on their hard-earned benefits – and now, they will.” New Mexico Governor Michelle Lujan Grisham said in a statement.
Military Retirement
Veterans will be able to exclude $10,000 in military retirement benefits for the 2022 tax year. This exemption will continue to rise over the next few years as New Mexico looks at ways to thank its veterans. In the 2023 tax year, the exemption will rise to $20,000 in military retirement benefits, and increase again to $30,000 in 2024. If the exemption is not continued by the New Mexico State Legislature, the exemptions will end in 2027. Like with the social security change, look for more information as tax season approaches from the NM Taxation and Revenue Department for instructions on how veterans can claim their exemptions.
Other Tax Credits and Rebates There are four new tax credits and rebates available to qualifying New Mexicans. From a refundable medical care credit which will affect senior citizens by allowing them to claim credit when their medical expenses run over $28,000. Senior citizens living in poverty, those making up to $16,000 a tear, will be able to receive a $250 property tax rebate. Veterans, or unmarried widows of veterans, can check to see if they are eligible for a $4,000 reduction in the tax they pay for their primary place of residence. This only applies to the home the veterans or unmarried widow of a veteran lives. Veterans can check with the Cibola County Assessor’s Office or the NM Department of Veterans Services to see if they qualify for this new exemption.
Veterans who are completely disabled, and unmarried widows of veterans, can check with the Cibola County Assessor or the Department of Veteran’s Services to see if they qualify for a property tax waiver, which would mean they do not have to pay property tax. This is unlike the previous exemption for veterans and widows of veterans, as that only accounts for a $4,000 decrease, this will waive the entire fee.
New Mexicans in need of tax assistance can call 505-224-5997 to speak with a representative from the NM Tax and Revenue Department.
Veterans who wish to connect with the Department of Veterans Services can contact 505-287-6300.