New Mexico residents — who have already gotten several tax breaks this year — will soon get another round of tax refunds as the state prepares to send payments totaling $250 or $500 to households that have filed taxes in 2021.
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Payments could come as early as next week, KRQE reported. This will be the third round of discounts sent to New Mexicans.
Residents who filed their 2021 state taxes as individuals will receive a July rebate if they earned less than $75,000 in adjusted gross income in 2021. Single filers who meet this requirement will receive a payment $250 from the state.
Married couples who jointly filed their New Mexico state taxes for 2021 will receive a July rebate if they earned less than $150,000 in AGI in 2021. For those who meet this threshold, the rebate will be $500.
You can verify your 2021 AGI by looking at federal tax documents such as Form 1040, Form 1040-SR, and Form 1040NR. The AGI must be on the first page, in box 11.
Rebates are expected to begin processing in the first full week of July, KRQE noted, citing comments from New Mexico Department of Tax and Revenue spokesman Charlie Moore. Since Monday, July 4 is a federal holiday, the first refunds could be processed as early as Tuesday, July 5.
It will likely take a full month for all refunds to be paid to all eligible taxpayers, Moore said. The state will automatically pay July rebates by direct deposit or paper check. Checks will be sent to those who do not have direct deposit banking information on file with the state.
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The state expects to send about 710,000 refunds, with the split between single filers and joint filers estimated to be about 50-50. Government officials said some checks could be less than $250 or $500 if taxpayers incorrectly calculated their income tax payments and still owed money, or if they filed late and incurred interest. had been assessed. In addition, you may not receive reimbursement if you were declared a dependent on another person’s declaration.
Direct deposits could also be delayed if a taxpayer used a preparation service and received an advance from the preparer on their refunds. In these cases, the refunds are first paid into an account opened as part of the advance process and must be transmitted by the preparation service to the taxpayer.
New Mexicans have gotten plenty of tax breaks so far in 2022 beyond refunds. As previously reported by GOBankingRates, New Mexico became the latest state to exempt Social Security income from taxes when Governor Michelle Lujan Grisham signed sweeping tax legislation on March 9. married couples file jointly.
Other benefits included in the invoice:
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This article originally appeared on GOBankingRates.com: Taxes: New Mexico Residents to Get $250 and $500 Tax Rebates in July – What You Need to Know