Bill > SB184

This bill proposes to remove the income cap for the Social Security Income tax exemption in New Mexico, which previously limited the exemption for different filing statuses (single, married filing separately, head of household, etc.) at income levels ranging from $75,000 to $150,000. Under the proposed change, individuals will be able to claim an exemption for Social Security income regardless of their adjusted gross income, with the exempted amount still limited to the individual's net income. The exemption is based on the amount of Social Security income included in adjusted gross income as defined by Section 86 of the Internal Revenue Code. The changes will take effect for taxable years beginning on or after January 1, 2025, meaning taxpayers will first be able to use this new exemption when filing their 2025 tax returns in early 2026. This modification aims to provide broader tax relief for Social Security recipients by eliminating previous income-based restrictions on the exemption.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=184&year=25