Section 7-2-5.8 - Exemption for low- and middle-income taxpayers. - New Mexico Statutes

7-2-5.8. Exemption for low- and middle-income taxpayers.

A.     An individual may claim an exemption in an amount specified in Subsections B through D of this section not to exceed an amount equal to the number of federal exemptions multiplied by two thousand five hundred dollars ($2,500) of income includable, except for this exemption, in net income.    

B.     For a married individual filing a separate return with adjusted gross income up to twenty-seven thousand five hundred dollars ($27,500): 

(1)     if the adjusted gross income is not over fifteen thousand dollars ($15,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and 

(2)     if the adjusted gross income is over fifteen thousand dollars ($15,000) but not over twenty-seven thousand five hundred dollars ($27,500), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows: 

(a)     two thousand five hundred dollars ($2,500); less 

(b)     twenty percent of the amount obtained by subtracting fifteen thousand dollars ($15,000) from the adjusted gross income.  

C.     For single individuals with adjusted gross income up to thirty-six thousand six hundred sixty-seven dollars ($36,667): 

(1)     if the adjusted gross income is not over twenty thousand dollars ($20,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and 

(2)     if the adjusted gross income is over twenty thousand dollars ($20,000) but not over thirty-six thousand six hundred sixty-seven dollars ($36,667), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows: 

(a)     two thousand five hundred dollars ($2,500); less  

(b)     fifteen percent of the amount obtained by subtracting twenty thousand dollars ($20,000) from the adjusted gross income.  

D.     For married individuals filing joint returns, surviving spouses or for heads of households with adjusted gross income up to fifty-five thousand dollars ($55,000): 

(1)     if the adjusted gross income is not over thirty thousand dollars ($30,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and 

(2)     if the adjusted gross income is over thirty thousand dollars ($30,000) but not over fifty-five thousand dollars ($55,000), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows: 

(a)     two thousand five hundred dollars ($2,500); less  

(b)     ten percent of the amount obtained by subtracting thirty thousand dollars ($30,000) from the adjusted gross income.