New Mexico families benefit from $94M in tax relief

Politics - Government

NEW MEXICO (KRQE) – Nearly $100 million in tax relief has been sent out to New Mexico families under a special, one-time rebate. According to Taxation & Revenue New Mexico, about 157,000 taxpayers who claimed the Working Families Tax Credit have received a one-time $600 income tax rebate that was authorized in Senate Bill 1 during the 2021 legislative session.

The department states in a press release that the rebate is going to taxpayers who claim the credit on their 2020 Personal Income Tax return and have an adjusted gross income of $31,000 or less for single filers or $39,000 for those married filing jointly or heads of household.

Qualifications for the Working Families Tax Credit this year are the same as for the federal Earned Income Tax Credit. Information on the rebate is available in Tax Bulletin 100.39 at tax.newmexico.gov.

More families will now be able to qualify next year under the provisions of that rebate. The department reports that under provisions of House Bill 291, the Working Families Tax Credit will be available to taxpayers without Social Security numbers and to taxpayers that are as young as 18.

In 2019, nearly 200,000 families claimed the credit under the old eligibility rules. Additionally, the law will expand the income tax level for LICTR eligibility from $22,000 to $36,000, increases the maximum rebate from $450 to $730 and indexes the rebate to inflation so that over time its values doesn’t erode.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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