New Mexico Taxpayers Advisement

From the State of New Mexico Taxation & Revenue Department

The New Mexico Taxation and Revenue Department is advising taxpayers to review the
withholding information they have chosen on their W-4s because of changes in federal and state
tax laws.
New Mexico uses the federal W-4 for determining withholding amounts for state income tax, but
the forms employees have on file with their employers may be outdated. The older federal form
will be phased out and replaced with the 2020 federal form for those beginning new jobs or
updating their withholding amounts.
Taxpayers who owed significant payments or who were due large refunds when filing last year’s
income tax return are especially advised to take the time to review the amount of federal and
state taxes being withheld from their paychecks.
Others strongly advised to review their withholding amounts include individuals who have
multiple jobs, a job and self-employment income, who are married to a spouse who is not
working outside the home or who expect to itemize deductions on their income tax returns.
Taxpayers can adjust their state and federal withholding to try to ensure the amount withheld
over a year is roughly equal to the taxes they will owe.
Employees may want to lower or increase the amount withheld from their paychecks depending
on their particular circumstances. Those wishing to make changes should use the new 2020 W-
4, which they can obtain from their employers. Anyone wishing to change only their New Mexico
withholding amount should specify on the form that it is intended for New Mexico withholding
purposes.
More detailed information for employees and employers is available in FYIs 104, 107, and 330
on the Department’s website, tax.newmexico.gov. Click on the Forms & Publications link, open
the Publications folder and then the FYIs folder.

 

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