New Mexico – Schedule PIT-ADJ – Credit for Taxes Paid to Another State

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Article: 50492

Overview 

If you are a New Mexico resident who earned income in another state (or a foreign country) and paid income tax on that income to that other jurisdiction, you may qualify for a to avoid being taxed twice on the same income. This is reported using the Credit for Taxes Paid to Another State section of the PIT-ADJ (Schedule of Additions, Deductions, and Credits) form. 

Who is Eligible for the Credit? 

You may claim this credit if: 

  • You are a full-year New Mexico resident, and 
  • You earned income that is also taxed by another U.S. state or a foreign country, and 
  • You paid income tax to that jurisdiction on the same income, and 
  • The income is also reported on your New Mexico return. 

Note: The credit is nonrefundable and may not exceed the New Mexico tax liability on the same income. If claiming for multiple jurisdictions, you must complete separate entries for each.  

How to Report 

  1. Navigate to the State Taxes section on the left-hand side of the screen. 
  1. Click the link: I’d like to see the forms I’ve filled out or search for a form. 
  1. In the dropdown menu, select New Mexico. 
  1. Click on the Credit tab. 
  1. Select Credit for Taxes Paid to Another State to open the screen. 
  1. Enter all applicable information.  
  1. Click Save once complete. 

Additional Resources 

For further guidance, see: 2024 New Mexico PIT-ADJ Instructions (PDF) 

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