USA New Mexico double tax

[Whipsaw Kid]

Hello,

We have most of our income sourced from out of state. We live in NM, but now they seem to want to charge us tax on income
that we paid tax already to other states. If we pay this double tax, the tax rate will be 50% on the income we have earned inside NM state. This also happened last year, so I called them and the attitude was tuff, thats the way it is.

Please tell me if they can do this legally, and if this is correct. If not I will find out what is wrong with my tax program or fill out a form by hand.

Thanks,
Whip

 

[Drmdcpa]

You should get credits for taxes paid to other states. You have to know which states give which credits.

For example CA gives credit for most states with a few exceptions. I believe if it is an AZ CA issue, AZ gives the credit no CA. I would have to look up NM to determine what states it gives credit for and what states give credit to.

 

[Whipsaw Kid]

OK, thx.

Yes Im in he credit section now, so we will see if it is reasonable.

 

[geezer]

NM taxes personal income for residents regardless of where it is sourced. However, if you'll read the instructions for the NM personal income tax return, there is a line for a credit for taxes paid to another state. But read the instructions, there are rules concerning the credit.

 

[Whipsaw Kid]

Gr8 Thx, I think I will amend last years too....