A. Except as otherwise provided in this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual is entitled to a tax rebate during the 2005 taxable year for a portion of state and local taxes to which the person has been subject during the 2005 taxable year, even if the resident has no income taxable pursuant to the Income Tax Act.

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Terms Used In New Mexico Statutes 7-2-7.2

  • Dependent: A person dependent for support upon another.

B. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual; provided that, in the case of a husband and wife who have filed a joint return where only one individual is a New Mexico resident, the number of exemptions shall be reduced by one.

C. Except as otherwise provided in Subsection D of this section, the tax rebate provided for in this section is allowed for the amount shown in the following table:

Adjusted Gross Income is:         And the total number of exemptions is:

Over     But Not Over 1             2             3             4             5             6 or more $0     $10,000         $139         $179         $214         $244         $269         $289 10,000     20,000         124         164         189         214         234         249 20,000     35,000         109         139         164         184         199         209 35,000     45,000             94         119         139         154         164         169 45,000     60,000             79         104         124         139         149         154 60,000                             64             84             99         109         114         119.

    D. If a resident’s adjusted gross income is less than or equal to zero, the resident is entitled to a rebate in the amount shown in the first row of the table appropriate for the resident’s number of exemptions.

E. Except as otherwise provided in this section, the secretary shall make an advance payment of the tax rebate provided for in this section not later than November 15, 2005 to each resident who filed a 2004 New Mexico personal income tax return. Advance payment amounts shall be based on the number of federal exemptions allowable for federal income tax purposes on the 2004 New Mexico personal income tax return of the resident for whom a rebate is allowed pursuant to this section and on the federal adjusted gross income reported by that resident on the same return. A resident who does not receive an advance payment may claim the tax rebate provided for in this section on that resident’s 2005 New Mexico personal income tax return based on the federal adjusted gross income and on the number of federal exemptions allowable for federal income tax purposes reported on that return.

F. The department shall not make an advance payment of the tax rebate provided for in this section to a person who:

(1)     was an inmate of a public institution for more than six months during the 2004 taxable year; or

year.

(2)     was not a resident of New Mexico on the last day of the 2004 taxable G. The department shall not allow a tax rebate provided in this section to a person who claims the rebate on that person’s 2005 personal income tax return, but:

(1)     was an inmate of a public institution for more than six months during the 2005 taxable year; or

year.

(2)     was not a resident of New Mexico on the last day of the 2005 taxable H. The secretary may adopt regulations necessary to administer the provisions of this section.

I. For purposes of this section, “dependent” means “dependent” as defined by Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.