Instructions Draft For Pit-1 - New Mexico Personal Income Tax Return - 2013 Page 6
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44spouse due to an understatement of
Beginning January 1, 2012, annual
generated from the separate property
withholding* from owners, members,
of the spouse who owns the property.
tax, divorce, or separation, you may be
able to claim Innocent Spouse Relief,
or partners (owners) of a pass-through
A spouse may not need to report half of
Separation of Liability, or Equitable
entity (PTE) is required. PTEs are
certain combined community income
Relief from the Internal Revenue Ser-
required to withhold from the owner’s
(e.g., wages, salaries, professional
vice (IRS).
share of the PTE’s allocable net in-
fees, pay for professional services,
come earned in the year at the rate
partnership income, trade or business
If you file a joint tax return and all or
of 4.9%. Certain exceptions to the re-
income, and social security benefits
part of your portion of the overpay-
quirement to withhold are allowed, and
if all of the following conditions exist:
ment (for community property) was
documentation must be maintained
•
You and your spouse lived apart all
DRAFT 1.2
or is expected to be applied (offset)
in the PTE’s records to establish that
year.
the PTE had reasonable cause for not
to your spouse’s legally enforceable
•
You and your spouse did not file a
past-due liability, you may be able to
withholding. A complete list of excep-
joint return.
claim Injured Spouse Relief from the
tions is provided in the instructions for
•
You and your spouse had wages,
IRS. Please refer to IRS Publications
Form RPD-41367, Annual Withholding
salaries, and professional fees that
971, Innocent Spouse Relief, and 504,
of Net Income From a Pass-Through
10-08-2013
are community income.
Entity Detail Report. The withholding is
Divorced or Separated Individuals.
•
reported on Form RPD-41367.
You and your spouse did not trans-
Although state law prohibits the De-
fer (directly or indirectly) any of the
partment from forgiving state taxes
* For tax year 2011 only, PTEs were
wages, salaries or professional
due, the Department Secretary has the
required to withhold quarterly from the
fees between you and your spouse
discretion to decline to bring collection
owner’s share of the PTE’s net income
during any part of the year.
action against an “innocent or injured
earned.
spouse” when it is unfair to hold that
Report half the total of all other types of
spouse liable. When relief is granted in
A PTE must also file the annual PTE
community income (dividends, rents,
writing by the IRS, the spouse receiv-
return. An S corporation must file the
royalties, or gains) if you meet all of
ing the relief may provide the docu-
S-Corp return. For complete details,
the above criteria. See FYI-310, Com-
mentation of the relief to the Depart-
see the instructions for those returns.
munity Property, Divorce, Separation
ment and request the Department to
and Your New Mexico Income Tax, for
decline to bring or to cease collection
Estates and Trusts
further details.
action against them to the extent they
Estates and trusts are subject to New
are granted relief by the IRS.
Mexico personal income tax. The fidu-
Married Filing Separately
ciary for an estate or trust files FID-1,
For married persons filing separately,
Fiduciary Income Tax Return. See the
Additionally, you may request from
persons separated or divorced dur-
the Secretary that collection action
instructions for the FID-1 return for
ing the year, or married persons filing
not be brought against you for any of
more details. Each beneficiary of an
jointly, claiming the exemption for
the following:
estate or trust includes the beneficia-
income of persons 100 years or older,
ry’s share of the estate or trust income
•
both your New Mexico and federal
Liabilities established by your
on the New Mexico personal income
returns MUST reflect a correct division
spouse when the income that
tax return even if the estate or trust
of community and separate income
established the liability were not
itself was not required to file a FID-1.
and payments. If your income and
claimed as community property.
payments are not evenly distributed,
•
You expect your portion of com-
Community Property and Division
attach a copy of a statement reflecting
munity property to be offset to clear
of Income
a correct division of community and
the spouse’s separate debt.
New Mexico is a community property
separate income and payments.
•
Business-related debt, when you
state, and all assets and liabilities ac-
can show that you had no knowl-
quired during a marriage are the com-
See also the instructions for Schedule
edge of the business, did not
munity property of both spouses, un-
PIT-B for allocation and apportionment
benefit from the business, and the
less the property is separate property.
rules for the community property when
income from the business was not
Debt established during a marriage
one spouse is a resident (but not both
claimed as community property.
is the liability of both spouses, even
spouses), the couple is filing a joint
after the marriage is dissolved. Debt
return, and the couple has income
To request relief from the Depart-
established before or after a marriage
from sources both in and out of New
ment, submit a written request to New
is considered separate debt, and only
Mexico.
Mexico Taxation and Revenue Depart-
50% of community property may be
ment, P.O. Box 630, Santa Fe, NM
pursued to clear separate debt.
Innocent or Injured Spouse Relief,
87504-0630, or to your local district
Separation of Liability, and Equi-
office. The addresses of the district
When a couple files married filing
table Relief
offices are on the back of the front
separately, each spouse reports 50%
If you believe a joint federal tax li-
cover of this packet. Do not attach the
of community income and all income
ability should be paid solely by your
PIT-1
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