Understanding the 2018 Non-Resident Tax Return for New Mexico

For individuals who are not residents of New Mexico but have earned income within the state, filing a non-resident tax return is a crucial step. This guide will help you navigate through the 2018 non-resident tax return for New Mexico, ensuring that you comply with the state’s tax regulations.

Eligibility and Deadlines

Firstly, it’s important to understand who qualifies as a non-resident for tax purposes. Generally, if you do not live in New Mexico but earn income there, you are considered a non-resident. This includes individuals who work in New Mexico, receive rental income from property in the state, or have other forms of income sourced from New Mexico.

The deadline for filing the 2018 non-resident tax return for New Mexico is April 15, 2019. However, if you live outside of the United States, you have an automatic two-month extension until June 15, 2019. It’s always advisable to file your return as soon as possible to avoid any penalties or interest.

Steps to File the Return

1. Gather Necessary Documents: Before you start, gather all the necessary documents, including your W-2 forms, 1099 forms, and any other income documents. This will help you accurately report your income.

2. Complete Form RT-4: The Form RT-4 is the main form used for non-residents to file their income tax return in New Mexico. Ensure that you fill out all the required sections accurately, including your personal information, income details, and any deductions or credits you may be eligible for.

3. Calculate Tax Owed: Use the instructions provided with the form to calculate the tax you owe. This may involve subtracting any non-resident tax withheld from your income.

4. Pay Any Tax Owed: If you owe tax, you must pay it by the filing deadline. You can pay online through the New Mexico Taxation and Revenue Department’s website or by mail with a check or money order.

Deductions and Credits

New Mexico offers a variety of deductions and credits for non-residents. Here are some key points to consider:

• Standard Deduction: Non-residents are eligible for a standard deduction, which can help reduce the amount of income subject to tax.

• Itemized Deductions: If you choose to itemize deductions, you can deduct expenses such as state and local taxes paid, unreimbursed employee business expenses, and medical expenses that exceed 7.5% of your adjusted gross income.

• Credits: Depending on your circumstances, you may be eligible for various credits, such as the child tax credit, education credit, or the earned income credit.