ALBUQUERQUE (KRQE)– Senate voted 37-0 to pass Senate Bill 166.
The bill would allow New Mexico taxpayers to take a tax credit the following tax year for taxes on personal income that were overstated and overpaid.
The overpayment of taxes may have resulted from overstated amounts of personal income, social security, Medicaid, or Workers Compensation.
The Federal Government currently gives a tax credit on next year taxes for overpayment of taxes on personal income.
The state however, does not offer that credit as of yet.
SB 166 will create a new section of the Income Tax Act that allows taxpayers who made a ‘claw back’ repayment and has taken a federal credit to take a credit on their New Mexico income tax.