NEW MEXICO (KRQE) – The New Mexico Taxation and Revenue Department is advising taxpayers to view the withholding information on their W-4s as there have been changes in federal and state tax laws.
The federal W-4 is used by the state to determine withholding amounts for state income tax, however, the forms that employees have on file with employers may be outdated. Individuals who are starting new jobs aor updating their withholding amounts will see the 2020 federal form which will phase out the outdated federal form.
Those who owed significant payments or were due large refunds during last year’s income tax return are especially advised from the department to review the amount of federal and state taxes withheld from their paychecks. Those who have multiple jobs, a job and income from self-employment, those who are married to a spouse who is not working out of the home or those who anticipate to itemize deductions are also advised to review withholding amounts.
Taxpayers who would like to make changes to lower or increase the amount withheld from paychecks should use the new 2020 W-4 that can be obtained from employers. Those wishing to only change their New Mexico withholding amount are asked to specify on the form for New Mexico withholding purposes.
Additional information for employers and employees can be found on the New Mexico Taxation and Revenue Department’s website under Forms and Publications in the folder labeled FYIs.