$600 New Mexico Child Tax Credit: How You Can Still Claim It

New Mexico child tax credit: how to claim it

In 2022, New Mexico joined the growing list of states to offer a child tax credit, and last year, lawmakers increased the credit amount through House Bill 547. This means that this is the first tax season that the increased credit is available to taxpayers.

“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 at the start of this year’s tax filing season.

New Mexico’s Taxation and Revenue Department estimates that the increased child tax credit will offer $180 million to eligible parents and will benefit about 300,000 families in the state.

The credit is refundable, meaning taxpayers will get the credit amount even if it exceeds their tax liability. Moreover, the credit isn’t taxable in New Mexico but may be federally taxed.

Eligible parents can get from $25 to $600 per child, depending on their income. For instance, those with adjusted gross income (AGI) of $25,000 or less qualify for the full credit of $600 per child, while those with income over $350,000 will get $25 in credit.

Eligible parents who haven’t yet filed their tax returns can still claim the New Mexico child tax credit by filing their return by April 15 (paper tax returns). The deadline for taxpayers who file their return electronically is April 30.

Other rebates and credits available

In addition to the New Mexico child tax credit, residents, especially low- and moderate-income, can benefit from a variety of refundable rebates and credits that can help them to reduce their tax liability and boost refunds significantly.

Thus, it is important for taxpayers to carefully read the Personal Income Tax instructions to check whether or not they qualify for other rebates and credits, such as the Working Families Tax Credit, the Low-Income Comprehensive Tax Rebate, and more.

Even those who are not required to file an income tax return because they don’t meet the IRS income threshold may benefit from filing a state return. Such people may qualify for refundable credits and rebates such as the Property Tax Rebate for low-income seniors and the Medical Care Credit even if they had no tax withheld during the year.

Central New Mexico Community College’s (CNM) TAX HELP NEW MEXICO and AARP are offering filing assistance in the Albuquerque and Santa Fe areas. Also, taxpayers can contact their local office for free filing assistance. Taxpayers can visit tax.newmexico.gov to access Personal Income Tax forms.