2018 Non Resident NM Tax Return: Key Details Inside
Understanding the 2018 Non-Resident New Mexico Income Tax Form
For individuals who earned income in New Mexico but do not reside there, understanding the 2018 Non-Resident New Mexico Income Tax Form is crucial. This form helps determine the amount of income tax that non-residents owe to the state of New Mexico. In this article, we will delve into the details of the form, its sections, and the process of filing it.
General Information
The first section of the form requires basic information about the taxpayer, such as name, Social Security number, and filing status. It is essential to fill out this section accurately to ensure that the rest of the form is processed correctly.
Income Information
The next section of the form requires the taxpayer to report all income earned in New Mexico. This includes wages, salaries, tips, and other compensation. It is important to note that only income earned in New Mexico is subject to New Mexico tax, not worldwide income.
Here are some key points to consider when reporting income:
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Report all income earned in New Mexico, even if it was paid to you by an employer outside of the state.
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Include income from self-employment if it was earned in New Mexico.
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Do not include income from sources outside of New Mexico.
Exemptions and Deductions
Non-residents of New Mexico may be eligible for certain exemptions and deductions. The form allows taxpayers to claim these deductions to reduce their taxable income. Common deductions include:
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Standard deduction: Taxpayers can claim a standard deduction based on their filing status.
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Itemized deductions: Taxpayers can choose to itemize deductions if they believe they will save more money by doing so.
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Retirement contributions: Contributions made to certain retirement accounts may be deductible.
Calculating Taxable Income
After reporting income and applying deductions, the form calculates the taxable income. This is the amount on which the tax rate will be applied. The tax rate for non-residents of New Mexico is different from the rate for residents.
Filing the Form
Once the taxable income is determined, the form calculates the tax owed. Taxpayers must then file the form with the New Mexico Taxation and Revenue Department. The form can be filed electronically or by mail.
Here are some tips for filing the form:
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Double-check all information before submitting the form to avoid errors.
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Keep copies of the form and any supporting documents for your records.
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Consider seeking professional tax advice if you are unsure about any part of the form.
Conclusion
Filing the 2018 Non-Resident New Mexico Income Tax Form can be a complex process, but it is essential for non-residents who earned income in the state. By understanding the form’s sections, reporting the correct income, applying deductions, and following the filing process, taxpayers can ensure they meet their tax obligations to New Mexico.