Instructions Draft For Pit-1 - New Mexico Personal Income Tax Return - 2013 Page 43
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44•
If you or your spouse are enrolled in
made during the tax year to the New
You are not yet 65, but considered
a New Mexico Medical Care Savings
Mexico Education Trust Fund (an
blind for federal income tax pur-
Account (NMMSA) established by an
account in one of the New Mexico-
poses.
employer, and during 2013 you made
approved Section 529 college savings
or received contributions to the ac-
plans) for each beneficiary. Contribu-
Find the column in Table 1 below that
count or made or received distributions
tions include the principal and earn-
matches your filing status. Then find
from the account, you may be entitled
ings of amounts rolled over to a New
the row that includes your federal
DRAFT 1.1
to claim a New Mexico medical care
Mexico-approved Section 529 college
adjusted gross income. Read across
savings account exemption.
savings plan account from a non-New
to the last column for the exemption
Mexico-approved Section 529 college
amount.
An NMMSA is a tax-exempt trust or
savings plan.
custodial account set up by a self-em-
When both persons in a married couple
ployed individual or a small employer
NOTE: You may only deduct contribu-
are either 65 or older or blind on the
9/6/2013
that maintains a high-deductible indi-
tions to a Section 529 plan established
last day of the tax year, the amount in
vidual or family health plan. The funds
and approved by the New Mexico
the table applies to each taxpayer on
from the NMMSA are used to pay the
Education Trust Board. See Brochure
a joint return.
employee’s unreimbursed medical
#6, New Mexico Income Tax and Your
care expenses. To qualify for the ex-
Education Trust (529) Plan, on the
Be sure to mark the correct boxes
emption, the qualified contributions or
Department’s website.
on your PIT-1 return, page 1. If you
distributions must be included in your
or your spouse are 65 years of age or
federal taxable income.
Each person of a married couple who
older, mark boxes 1d and 2d. If you
files separate returns may claim half
or your spouse are blind for federal
CAUTION: Generally, qualified con-
the deduction allowed on a joint return.
income tax purposes, mark boxes 1c
tributions and earnings are excluded,
and 2c. If you leave these box(es)
exempted, or deducted from federal
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blank, the Department must deny your
adjusted gross income and distribu-
Net capital gains deduction
exemption on the Schedule PIT-ADJ.
tions paid for eligible medical expenses
are excluded, exempted, or deducted
You may deduct all or a portion of your
The Department at some time may
from federal taxable income. If your
net capital gains deduction reported
request proof that you or, if applicable,
qualified contribution or distribution is
and claimed on your federal tax return.
your spouse are blind for federal pur-
excluded, exempted, or deducted from
You may deduct the greater of:
poses. Please do not attach the proof
federal taxable income, you may not
• 100% of your net capital gains de-
to your return.
claim the exemption from New Mexico
duction, not to exceed $1,000; or
taxable income.
NOTE: You cannot take deductions
• 50% of your net capital gains de-
for being both 65 or older and blind.
duction
The following are exempt from New
The Department allows one deduction
Mexico income tax, and are reported
per person.
Each person of a married couple who
on line 13, if they are included in your
files separate returns may claim only
federal adjusted gross income:
EXAMPLE: A married couple files
half the net capital gains deduction
jointly and both people are 65 or older.
• Principal contributed to an NMMSA
allowed on a joint return.
Their federal adjusted gross income
• Interest earned on an NMMSA
is $35,000. According to the table be-
NOTE: You may not claim the net
• Money paid for eligible medical
low, the exemption amount is $12,000
capital gains deduction in addition to
expenses from funds in an NMMSA
($6,000 x 2).
credit provided by the Venture Capital
• Money advanced to the employee
Investments Act.
by the employer for eligible medical
If the same couple is also blind, the
expenses, according to the Medical
exemption is still $12,000.
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Care Savings Account Act
Armed Forces
active duty
Military
EXAMPLE: A married couple files
pay
jointly. The primary taxpayer is 65 and
Do not include excess contributions,
the spouse is 45 and blind. Their fed-
unqualified distributions, or money
If pay, wages, or salaries paid to you
eral adjusted gross income is $28,000.
rolled over into another NMMSA.
or your spouse for
U.S. Armed Forces
According to the table below, the ex-
active duty military service in the U.S.
emption is $16,000 ($8,000 x 2).
Armed Forces was included in your
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federal adjusted gross income on your
Deduction for contributions to a
LINE 13
PIT-1 return, line 9, enter the amount
New Mexico-approved Section 529
Exemption for New Mexico medical
here. This exemption from state in-
college savings plan
care savings account
come tax applies to residents and to
non-residents of New Mexico.
You can deduct contributions you
PIT-ADJ
- 5 A -
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