State provides guidance on how to take advantage of New Mexico pandemic tax breaks
ALBUQUERQUE, N.M.- Gov. Michelle Lujan Grisham signed economic measures Wednesday that go toward helping New Mexicans that have been hurt by the pandemic.
One of the new measures will provide a $600 personal income tax rebate to frontline and low-wage workers.
People who are eligible to receive the $600 income tax rebate just need to fill out their taxes. People who already completed their taxes will also receive their rebate, according to the state.
"To be eligible to receive the $600 rebate, the taxpayer needs to be eligible for and claim the Working Families Tax Credit, which about 200,000 New Mexico tax filers claim each year," said New Mexico Taxation and Revenue Sec. Stephanie Schardin. "And they also need to have income under a certain threshold. It’s about $31,200 income for a single filer and I believe it’s $39,000 for married, filing jointly or head of household.
The state estimates that people who file electronically will get their refund in about seven days. Those who mail their tax returns in can expect their refund in about 18 days.
Another measure signed by the governor will provide a four-month tax holiday for food and beverage businesses.
"This holiday stretches from March through June, for those four months," Schardin said. "And so when restaurants and bars go to file their GRS taxes, their gross receipts taxes, starting in April, they’re going to claim a deduction to basically deduct all their receipts from the sale of food and drinks and, and we’ll be putting out information to that industry in due time."
The tax holiday is expected to give $90 million back to the food and beverage industry and $109 million to working families.
For those who received unemployment benefits, Schardin reminds them the income is taxable.
"Workforce Solutions Department in New Mexico withholds federal tax from those benefits, but does not withhold state tax," she said. "So if you have received unemployment benefits over the calendar year, and you’re filing your returns, just be ready to know that you’ll owe state tax."