New Mexico 2011: Part Year Resident Income Excluded when Spouse Earned Military Income
Updated: 8/31/2012
Article ID: SLN62734
In certain situations the income earned by a military spouse is being excluded from the New Mexico taxable income. In the state interview experience, TurboTax will ask you if you qualify for the Spouses of Active Duty Military Income Exclusion, however answering no to this question will incorrectly maintain the income exclusion. This issue occurs when ALL of the following applies to your tax situation:
- Taxpayer is part year resident of New Mexico, and earned income in New Mexico while a resident
- Spouse is NOT a resident of New Mexico, and received military income
Work around - TurboTax Desktop
To work around the issue, you must allocate New Mexico income directly on the form. Please follow these steps:
- In TurboTax desktop, click on the Forms icon located in the top right hand corner of the TurboTax window
- Locate and click on Form PIT-B in the Forms in My Return section
- Enter the New Mexico portion of income in Column 2
- Click on the Step-by-Step icon and continue with filing your return
Workaround - TurboTax Online
Please contact us so that we can walk you through the process of resolving your issue.
