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INSTRUCTIONS FOR 2008 PIT-RC SCHEDULE
NEW MEXICO REBATE AND CREDIT SCHEDULE
GENERAL INFORMATION you must calculate allowable house- of federal tax you may owe and may
hold members and extra exemptions. increase your refund from the IRS. To
SECTION I You must complete lines 1 through 3 see if you may claim the credit, read
The questions in SECTION I must be to claim the rebate. the rules in the federal 1040, 1040A,
answered to claim any of the rebates and 1040EZ tax packages or see IRS
or credits reported in SECTIONS II Note: New Mexico uses the same Publication 596. You may also read
through V. definitions and qualifications as the about the EITC credit on the IRS web
Internal Revenue Service to determine site at www.irs.gov and download the
The general qualifications* for claim- if someone is your dependent. See the publication there.
ing refundable rebates and credits in federal Form 1040, 1040A or 1040EZ
Sections II through V are: instructions for dependent definitions The instructions for each rebate or
• You must have been a resident of and qualifications. credit provides additional, specific
New Mexico during the tax year, eligibility requirements.
and MODIFIED GROSS INCOME
All claimants must complete line 28.
• You must have been physically Eligibility for all rebates and cred-
present in New Mexico for at least its shown in Sections II through V In these PIT-RC instructions a line
six months during the tax year depends on MODIFIED GROSS entry is explained only if additional
(except for the Child Day Care INCOME (MGI). MGI is different from guidance would be helpful or if the
Credit), and federal adjusted gross income, federal item is unique to New Mexico.
taxable income or New Mexico taxable
• You were not eligible to be claimed income. See What is Modified Gross STEPS FOR PREPARING THE
as a dependent of another tax- Income? on page 3 RC for details and SCHEDULE PIT-RC
payer for the tax year, and definitions.
• You were not an inmate of a Prepare your federal return first. Even
public institution for more than six NOTE: You may be eligible for an if you are not required to file a federal
months of the tax year. Earned Income Tax Credit (EITC) from return, it is easier to complete the
the Internal Revenue Service (IRS) if Schedule PIT-RC when you fill out a
*NOTE: To claim the refundable tax you qualify for any of the low income sample federal return first.
credits in Section VI (see page 8 rebates and credits on Schedule
RC) individuals do not need to meet PIT-RC. If you qualify, you may also Also read the section Filling in your tax
“general qualifications.” They may skip qualify for the Working Families Tax return on page 16 of the Form PIT-1
Section I when completing the PIT-RC Credit on your New Mexico return. See instructions.
schedule. See the instructions for lines the instructions for lines 25 and 25a, ______________________________
23 through 27 for further details. Schedule PIT-RC for more details.
STEP 1 - Gather all forms and pub-
ALLOWABLE HOUSEHOLD MEM- The Federal EITC is a refundable lications you need.
BERS AND EXTRA EXEMPTIONS federal income tax credit for low-
When claiming the Low Income Com- income working individuals and fami- If you need additional forms or instruc-
prehensive Tax Rebate in Section II, lies. The credit reduces the amount tions, see Contacting the Department
Modified Gross Income Limitations for 2008 Refundable Tax Credits
in Section VI, Schedule PIT-RC
If your modified • Refundable medical care credit for
gross income is: You may qualify for; persons age 65 or older;
• Approved film production tax credit;
$22,000 or less Low Income Comprehensive Tax Rebate
• Working families tax credit, if you
$16,000 or less Property Tax Rebate (if you are 65 or older) also qualify for the federal Earned
$27,248 or less Child Day Care Credit Income Tax Credit;
• Special needs adopted child tax
credit; and
Los Alamos County Residents Only
• Renewable energy production tax
$24,000 or less Low Income Property Tax Rebate credit.
for Los Alamos County residents.
PIT-RC - 1 RC - www.tax.state.nm.us
on page 12 of the Form PIT-1 instruc- mentation with your return. However, under Sections II through V, you have
tions. as with all deductions, rebates and completed Section I, and answered all
______________________________ credits claimed on your tax return, required questions. Make sure your
you must keep receipts and records social security number is correct on
STEP 2 - Get your records together. so that the Department may determine page 2 of Schedule PIT-RC.
your correct tax due. The Department _____________________________
If you received a salary or wages, get may require copies of your records to
all your 2008 wage and tax statements support your claim. See instructions STEP 5 - Transfer the amount on
together. for line 23. line 28 to your Form PIT-1.
If you received an annuity, pension, To claim the film production tax credit, Be careful to enter the correct total
retirement pay, IRA distributions, Rail- you will need Form RPD-41228, Film amount of rebates and credits on
road Retirement or sick pay or social Production Tax Credit Claim Form. line 21 on Form PIT-1. Continue with
security benefits in 2008, gather your Prior approval from the Economic the line instructions and remaining
federal Form(s) 1099-R, 1099-RRB Development Department and the steps for completing your 2008 Form
and 1099-SSA. Taxation and Revenue Department is PIT-1.
required. See instructions for line 24. _____________________________
Collect your records of gambling or LINE INSTRUCTIONS
lottery winnings. You will need your To claim the working families tax
2008 federal Form W-2G if the form credit, you will need all documentation Enter the primary taxpayer’s name
was issued to you. used to compute the Federal Earned and social security number exactly as
Income Credit reported on the 2008 it appears on Form PIT-1.
If you received public assistance federal personal income tax return.
from Temporary Assistance to Needy See instructions for line 25. Individuals claiming rebates and credits
Families (TANF), the New Mexico under Sections II through V must
Works Act or similar program, welfare In the first year you claim the special complete Section I in its entirety, or
benefits or Supplemental Security needs adopted child tax credit for a the rebate or credit will be denied.
Income (SSI) during 2008, you will qualifying adopted child, you will need Individuals claiming ONLY refundable
need records of the amounts. to attach a copy of the certificate issued tax credits in Section VI, skip Sections
by the Human Services Department or I through V. All claimants must com-
Gather the records of any other income the licensed child placement agency plete line 28.
you received in 2008 — whether or for each child you adopted in that year.
not taxable — such as an insurance See instructions for line 26. Section I: Qualifications for Credits
settlement, a scholarship or grant, VA and Rebates Reported in Sections
benefits, income from an inheritance To claim the renewable energy pro- II through V.
or trust, gifts of cash or marketable duction tax credit, you will need Form
property, alimony or child support. RPD-41227, Renewable Energy Pro- Question A. On a joint return check
duction Tax Credit Claim Form. Prior BOTH boxes if one spouse was a
To claim the Low-Income Property approval from the Energy, Minerals resident of New Mexico during the tax
Tax Rebate for Los Alamos County and Natural Resources Department is year and the other spouse was not.
Residents, you need records of the required. See instructions for line 27.
property tax billed for 2008 on your ______________________________ Question B. Check BOTH boxes on a
principal place of residence in Los joint return if one spouse was physi-
Alamos County. STEP 3 - Fill in Schedule PIT-RC. cally present in New Mexico for at
least six months and the other spouse
If you plan to claim the Property Tax Complete Schedule PIT-RC using was not.
Credit for those 65 or older, you need the line instructions that follow.
records of the property tax billed for ______________________________ Question C. If you were a dependent,
2008 or the rent paid on your principal or you qualify as a dependent of
place of residence. STEP 4 - Check the figures on your another individual for federal income
Schedule PIT-RC. tax purposes, check the YES box
If you plan to claim the Child Day Care whether or not you were actually
Credit, you will need a Caregiver’s Make sure your arithmetic is correct claimed as a dependent on the other
Statement, Form PIT-CG, from each and you limited your calculations to person’s federal return. If you were a
person who provided child day care the maximum when required. dependent of another taxpayer, you
during 2008. may not claim any tax rebate or the
Check that the first page of Schedule Child Day Care Credit.
To claim the refundable medical care PIT-RC shows your correct name and
credit for persons 65 or older you will social security number, and if claiming Inmate Checkbox. Check the appro-
not need to submit additional docu- one or more of the rebates and credits priate box(es) if either spouse was an
PIT-RC - 2 RC - www.tax.state.nm.us
inmate of a public institution for more Dependents who are non-residents LINE 2h. If you and your spouse are
than six months in 2008. A taxpayer of New Mexico DO NOT qualify as filing separately, you must exclude the
who is an inmate of a public institution a household member for purposes number of household members and
for more than six months does not of claiming the low income compre- extra exemptions your spouse claimed
qualify for rebates or credits and does hensive tax rebate. Include non- on line 2g of his or her PIT-RC.
not qualify as a household member resident dependents on line 2a of
for purposes of rebates or credit. If Schedule PIT-RC. Dependents who LINES 4 through 12.
the inmate has a spouse who was not are residents of New Mexico, but are Calculation of Modified Gross
an inmate, the spouse of the inmate not physically present in New Mexico Income
may still qualify to claim the rebates for six months, qualify as household
or credits. members for purposes of claiming Read What is Modified Gross Income?
the Low-Income Comprehensive Tax below before completing these lines.
LINE 1. Rebate.
Number of Exemptions What is Modified Gross Income?
EXAMPLE: A married couple filing
Enter the number of exemptions from a joint return reports six exemptions Modified Gross Income (MGI) is
line 2, Form PIT-1. This is the same on line 1 of Schedule PIT-RC. The unique to New Mexico law. In general,
number of qualified federal exemptions husband lived out of state for seven MGI is ALL income and other compen-
as reported on your federal return. Re- months of the tax year. Since he was sation you receive from ALL sources
fer to the instructions on your federal not physically present in New Mexico (regardless of whether that income is
return to determine the correct entry. for six months, the family allowance taxable by the U.S. Government or the
is only five household members when state of New Mexico) for yourself, your
LINES 2 and 3. claiming the Low-Income Compre- spouse and your dependents. You
Allowable Household Members and hensive Tax Rebate. If both taxpayers may not reduce MGI by deductions
Extra Exemptions for Purposes of lived out of state for seven months, or offset MGI by losses allowed for
Claiming Low-income Comprehen- none of the household members income tax purposes under the New
sive Tax Rebates would qualify. Mexico Income Tax Act or under the
Internal Revenue Code.
LINE 2a. EXAMPLE: The taxpayer qualifies for
Number of Household Members the tax rebates, but has a dependent When calculating MGI, include the
Who Do Not Qualify who is out of state temporarily to MGI of the taxpayer and all household
attend school. The dependent is still members. Even if you are married but
Enter the number of household mem- a resident of New Mexico. Although filing separate returns, the total modi-
bers who DO NOT qualify. If all house- the dependent may be gone for most fied gross income of both husband and
hold members qualify, leave this field of the year, the taxpayer may claim a wife must appear in the calculation.
blank. rebate counting that dependent as a
household member. The following items are excluded from
Household members who do not the definition of MGI and DO NOT
qualify: You or your spouse must EXAMPLE: If a citizen of another have to be reported:
meet the general qualifications listed country is a resident of New Mexico, • money lent to you that you are
below or all members of your house- that person may claim the tax rebates. legally bound to repay;
hold do not qualify. You or your spouse If the spouse, children or other • the face value of food stamps or
must: dependents are not residents of New WIC vouchers;
• be a resident of New Mexico Mexico, the filer cannot claim a rebate
based on exemptions for them. • payments by any party or by
during the tax year; Medicare or any similar plan for
• be physically present in New hospital, dental, medical or drug
Mexico for at least six months LINE 2c. If you or your spouse (if filing
a joint return) is blind as defined for expenses whether or not the
during 2008; payment is made directly to the
federal income tax purposes, check
• be neither eligible to be claimed, the appropriate box(es) and enter the insured/recipient or a third-party
nor actually claimed, as a depen- total number of boxes you checked provider, and whether or not a
dent of another taxpayer for 2008, in line 2c. premium is paid;
and • money received during the year
• not be an inmate of a public insti- LINES 2e and 2f. Additional special as low-income or property tax
tution for more than six months exemptions are available if you, or rebates or child day care credit;
during 2008. your spouse if married filing jointly, • medical care payments made
If either you or your spouse meets the are age 65 or older on the last day of by Medicaid, the State Human
general qualifications, but not both, the tax year. Complete the lines as Services Department, the County
then the non-qualifying spouse is not instructed on the form. Indigent Hospital Claims Fund,
eligible. Champus, Veterans’ Administra-
PIT-RC - 3 RC - www.tax.state.nm.us
tion, or Workers’ Compensation; LINE 10. Enter all gifts of cash or LINE 14.
• rent subsidies, weatherization, marketable tangible items no matter Low Income Comprehensive Tax
energy and housing rehabilita- who gave them to you. Gifts of tangible Rebate
tion benefits (such as Section 8 items must be given a reasonable
housing assistance); value. To qualify for a rebate a claimant
• stipends paid to foster grand- must:
parents; and LINE 11. Enter all income not included • have a modified gross income of
on lines 4 through 10, regardless of $22,000 or less;
• free room and board when not whether it is taxable as federal or state
considered compensation. • be a resident of New Mexico
income. This may include, but is not during the tax year;
limited to:
LINE 4. Enter wages, salaries, tips, • be physically present in New
etc.. If wages, salaries, tips, etc., were • interest, including interest from Mexico for at least six months
exempted or deducted from federal U.S. Government securities and during 2008;
adjusted gross income on Schedule interest on state and municipal
bonds; • be neither eligible to be claimed,
PIT-ADJ, they must be included on line nor actually claimed, as a depen-
4, for purposes of computing modified • dividends; dent of another taxpayer for 2008,
gross income. • alimony, separate maintenance and
and child support payments; • not be an inmate of a public insti-
LINE 5. Enter the gross amount of • gross gambling, gaming and lot- tution for more than six months
social security benefits, other retire- tery winnings from any source. during 2008.
ment benefits, including Railroad Do not reduce winnings by any
Retirement benefits and veterans’ losses; Line 14. Turn to the Low-Income
benefits, and amounts received from • receipt of contribution withdraw- Comprehensive Tax Rebate Table
pensions and annuities WITHOUT als from deferred compensation (Table 1, page 5 RC). Go down the
deduction for Medicare premiums or plans; column on the left until you find the
other deductions. line that includes the Modified Gross
• royalties from any source;
• distributions from employee Income you entered on line 13. Read
LINE 6. Enter unemployment benefits across until you reach the column
from all sources and Workers’ Com- stock ownership plans or other
employee benefit plans, except showing the number of exemptions
pensation benefits received. Do not you calculated on line 13a. This figure
include medical benefits. for medical benefits;
is your Low-Income Comprehensive
• income from discharge of indebt- Tax Rebate.
LINE 7. Enter amounts received from edness (not involving bankruptcy);
public assistance, TANF or a similar • value of a legacy, devise, bequest All taxpayers, other than married
program, welfare and general assis- or inheritance received; couples filing separate returns, enter
tance benefits, and Supplemental • income from an estate or trust; this amount on line 14 of Schedule
Security Income (SSI). DO NOT PIT-RC. Married couples filing sepa-
include medical care benefits, rent • distributions from partnerships,
S corporations or similar pass- rate returns must divide the amount
subsidies, weatherization, energy and from the table by 2 and enter the
housing rehabilitation benefits. through entities;
• scholarships, fellowships, prizes, result on line 14 of Schedule PIT-RC.
awards or grants; (Include this amount on line 28 of the
LINE 8. Enter your net profit from Schedule PIT-RC.)
business, profession, farm or rentals. • other cash prizes and awards;
This includes income from self- • insurance or court settlements; LINES 15 through 17.
employment. If it is a loss, enter zero. • amounts received from endow- Property Tax Rebate for Persons
If you have more than one business, ment contracts; 65 or Older
farm or rental property, you MAY NOT
offset the loss of one business, farm • the value of room and board
received as compensation; The property tax rebate may not
or rental against the profit of another exceed $250. ($125 for a married
business, farm or rental or against any • all ordinary gains from dealing in
or selling property; and taxpayer filing a separate return.)
other source of income.
• cost-of-living, moving or other There is no property tax rebate
LINE 9. Enter your gross capital gains. allowances received as compen- available for property that is not
Do not reduce them by capital losses. sation. already subject to property tax.
Include in capital gains any gain on
the sale of a personal residence in To qualify for a rebate a claimant
2008 that is deferred or not subject to must:
federal income tax.
• have a modified gross income of
$16,000 or less;
PIT-RC - 4 RC - www.tax.state.nm.us
TABLE 1 - 2008 LOW INCOME COMPREHENSIVE TAX REBATE
Modified Gross Income
Number of Exemptions from Line 13a of PIT-RC
from Line 13 of PIT-RC
But Not Over 1 2 3 4 5 6 or more
0 $ 500 $ 120 $ 160 $ 200 $ 240 $ 280 $ 320
501 1,000 135 195 250 310 350 415
1,001 1,500 135 195 250 310 350 435
1,501 3,500 135 195 250 310 350 450
3,501 4,500 135 195 250 310 355 450
4,501 5,000 125 190 240 305 355 450
5,001 5,500 115 175 230 295 355 430
5,501 6,000 105 155 210 260 315 410
6,001 7,000 90 130 170 220 275 370
7,001 8,000 80 115 145 180 225 295
8,001 9,000 70 105 135 170 195 240
9,001 10,000 65 95 115 145 175 205
10,001 11,000 60 80 100 130 155 185
11,001 12,000 55 70 90 110 135 160
12,001 14,000 50 65 85 100 115 140
14,001 15,000 45 60 75 90 105 120
15,001 16,000 40 55 70 85 95 110
16,001 17,000 35 50 65 80 85 105
17,001 18,000 30 45 60 70 80 95
18,001 19,000 25 35 50 60 70 80
19,001 20,000 20 30 40 50 60 65
20,001 21,000 15 25 30 40 50 55
21,001 22,000 10 20 25 35 40 45
• be age 65 or older on the last day — whether owned or rented — and tax has been billed. Add the property
of the tax year; only the amount of land surrounding tax billed on the home to the amount
it reasonably necessary to use the of property tax billed on the land. The
• be a resident of New Mexico dur-
dwelling as a home. The surrounding total is the amount of property tax
ing the tax year;
land may not exceed five acres for billed. Use that amount in computing
• be physically present in New purposes of this rebate. this rebate.
Mexico for at least six months
during 2008; If you have more acreage than is LINE 15. Complete line 15 only if you
• be neither eligible to be claimed, reasonably necessary to maintain a own your principal place of residence
nor actually claimed, as a depen- dwelling, adjust the amount of property and were billed property tax. See
dent of another taxpayer for 2008; tax billed to reflect the principal place definition of “Principal Place of Resi-
and of residence only. You may use only dence” above.
• not be an inmate of a public insti- this smaller amount to calculate the
tution for more than six months tax rebate. NOTE: If you paid rent for your prin-
during 2008. cipal place of residence for part of the
EXAMPLE: If a taxpayer’s principal year and were billed property tax for
The rebate is for property tax billed or place of residence is located on 25 your principal place of residence for
for rent paid during tax year 2008 on acres, include the total amount of the other part of the year, you may
the rebate claimant’s principal place property tax billed for the house alone claim both portions. The property tax
of residence in New Mexico. plus the portion of the land that is you would claim on line 15 is only
reasonably necessary to maintain the that part of the annual property tax
What is the Principal Place of residence, but not more than 5 acres. billed for the period you lived there. If
Residence? “Principal place of resi- If only one acre is reasonably neces- you were billed property tax on your
dence” for purposes of the Property sary to maintain the residence, divide manufactured home and you also paid
Tax Rebate for persons 65 or older the tax due on the land by the total rent for your lot or space, you may
is the dwelling and related structures number of acres for which property claim both.
PIT-RC - 5 RC - www.tax.state.nm.us
TABLE 2 - 2008 MAXIMUM PROPERTY TAX LIABILITY TABLE
Modified Gross Income from Line 13 of PIT-RC Modified Gross Income from Line 13 of PIT-RC
Maximum Property Maximum Property
Tax Liability Tax Liability
But Not Over But Not Over
$ 0 $ 1,000 $ 20 $ 8,001 $ 9,000 $ 60
1,001 2,000 25 9,001 10,000 75
2,001 3,000 30 10,001 11,000 90
3,001 4,000 35 11,001 12,000 105
4,001 5,000 40 12,001 13,000 120
5,001 6,000 45 13,001 14,000 135
6,001 7,000 50 14,001 15,000 150
7,001 8,000 55 15,001 16,000 180
LINE 16a. Complete line 16a only if LINE 18. There is no property tax rebate for
you paid rent on your principal resi- Property Tax Rebate for Low Income property that is not already subject to
dence. Enter the total amount of rent Residents of Los Alamos County property tax.
you paid during 2008. Count any rent
subsidy paid by a government entity The property tax rebate may not What is “Principal Place of Resi-
to your landlord. Put an “X” in the box exceed $350 ($175 for a married dence” for purposes of the low-
if applicable. taxpayer filing a separate return). income property tax rebate for Los
Alamos County residents? Principal
LINE 17b. See Maximum Property Tax You do not have to be 65 or older to be place of residence is the dwelling and
Liability Table above (Table 2). Find eligible for this rebate. If you are a Los related structures the taxpayer owns
the Modified Gross Income range for Alamos resident who is age 65 or older and occupies, and only that amount
the amount you entered on line 13 on the last day of the tax year, you of land surrounding it reasonably
of Schedule PIT-RC. Read across may be eligible for this rebate AND necessary to use the dwelling as a
the table to the column showing your the Property Tax Rebate for Persons home. For purposes of this rebate a
maximum property tax liability and 65 or Older reported on line 17c. You principal place of residence does not
enter the amount on line 17b. must attach a property tax statement include rented land or structures. The
to your return if the mailing address surrounding land may not exceed five
LINE 17c. Taxpayers, other than on your 2008 Form PIT-1 is not a Los acres.
married couples filing separate re- Alamos County address.
turns, subtract the amount on line If you have more acreage than is
17b (Maximum Property Tax Liability) To qualify for the rebate a claimant reasonably necessary to maintain a
from the amount on line 17a (allowable must: dwelling, adjust the amount of prop-
amount of property tax billed and rent • have a principal place of resi- erty tax billed to reflect the principal
paid). Enter the difference on line 17c. dence in Los Alamos County; place of residence only. Only this
If the amount is less than zero, enter • have a modified gross income of smaller amount may be used to cal-
“0”. If the amount is over $250, enter $24,000 or less; culate the tax rebate.
only $250.
• be a resident of New Mexico dur- LINE 18b. Go to the Low Income
ing the tax year; Property Tax Rebate Table for Los
Married couples filing separate re-
turns must subtract line 17b from line • be physically present in New Alamos County Residents Only (Table
17a, divide the difference by 2 and Mexico for at least six months 3). Find the Modified Gross Income
enter this amount on line 17c. If the during 2008; range that includes the amount you
amount is less than zero, enter “0”. If • be neither eligible to be claimed, entered on line 13 of Schedule PIT-
the amount is over $125, enter only nor actually claimed, as a depen- RC. Read across the table to the
$125. dent of another taxpayer for 2008; column showing your property tax
and rebate percentage and enter the
Be sure to include the amount on • not be an inmate of a public insti- amount on line 18b.
line 17c in the amount on line 28 of tution for more than six months
Schedule PIT-RC. during 2008. LINE 18c. Taxpayers, other than mar-
ried couples filing separate returns,
This rebate is for the property tax billed multiply the percentage on line 18b
during tax year 2008 on your principal (Property Tax Rebate Percentage)
place of residence in New Mexico. by the amount on line 18a (allowable
property tax billed) and enter the result
PIT-RC - 6 RC - www.tax.state.nm.us
on line 18c. If the amount is less than $27,248 or less; • was at least 18 years old at the
zero, enter “0”. If the amount is over • be a resident of New Mexico dur- time care was provided;
$350, enter only $350. ing the tax year; • provided the day care service
• furnish over half the cost of main- within New Mexico;
For example, the property tax billed taining a household for one or • provided day care for fewer than
to Los Alamos Resident A, on his more qualifying dependents for 24 hours daily; and
principal place of residence was $800 that part of the tax year for which • could not be claimed as a depen-
for calendar year 2008. On line 18a, the rebate is claimed (either sepa- dent by you or your spouse for
A enters $800. Because his modified rately or jointly with a spouse); federal income tax purposes.
gross income for 2008 was 19,000, • be gainfully employed for that
A enters on line 18b the property part of the tax year for which the A husband and wife maintaining a
tax rebate percentage of 45%. To credit is claimed. If they file a joint household for one or more qualifying
compute line 18c, A multiplies $800 return, both spouses must have dependents, but filing separate returns
by 45% (0.45). The result is $360, been gainfully employed unless for a tax year may each claim only half
but because the maximum rebate one was disabled for that part of the credit allowed for a joint return.
allowable is $350, A enters $350 on the tax year for which the credit is
line 18c. claimed; Definitions You Need to Know to
• not be a recipient of public as- Claim the Child Day Care Credit.
Married couples filing separate returns sistance under the Temporary 1) “qualifying dependent” means a
multiply 18a by 18b, divide the answer Assistance for Needy Families person under the age of 15 at the end
by 2, and enter this amount on line program (TANF), the New Mexico of the tax year who has received the
18c. If the amount is less than zero, Works Act or similar program, services of a caregiver. Dependent
enter “0”. If the amount is over $175, during that part of the tax year for includes a child of divorced or legally
enter only $175. which the credit is claimed, and separated parents when the taxpayer
• not have been reimbursed or meets all requirements for claiming a
Include the amount on line 18c in compensated for the amount of federal child care credit.
the amount on line 28 of Schedule child day care expense for which 2) “gainfully employed” means work-
PIT-RC. a credit is being claimed. Reim- ing for others for compensation, either
bursed or compensated child day full-time or part-time, or being self-
LINES 19 through 22. care expenses like those paid with employed. Actively seeking employ-
Child Day Care Credit pre-tax dollars under a cafeteria ment or school attendance does not
and similar benefit plans are also qualify as gainful employment.
The Child Day Care Credit may not ineligible. 3) “cost of maintaining a household”
exceed $1,200. ($600 for a married means the expenses for operating
taxpayer filing a separate return.) NOTE: The Department checks with the principal place of residence for
Please see Brochure #11, New appropriate state agencies to verify the mutual benefit of its occupants.
Mexico Income Tax - Child Day Care whether a claimant is receiving public These expenses include property
Credit on the TRD web page. Click assistance. taxes, mortgage interest, rent, utility
on “Publications”. charges, upkeep and repairs, property
No credit can be claimed for amounts insurance and food. Cost of maintain-
A credit claimant must: paid to a caregiver unless the care- ing a household DOES NOT include
• have a Modified Gross Income of giver: cost of clothing, education, medical
treatment, vacations, life insurance,
transportation or principal payments
Table 3 – 2008 Low Income Property Tax Rebate Table on mortgages.
For Los Alamos County Residents Only 4) “disabled person” means a person
who has a medically determinable
Modified Gross Income
physical or mental impairment, cer-
from Line 13 of PIT-RC Property Tax Rebate Percentage tified by a licensed physician, that
But Not Over (of property tax liability)
renders the person unable to engage
$ 0 $ 8,000 75% in gainful employment. NOTE: The
8,001 10,000 70% Department may ask you to provide
10,001 12,000 65% certification of disability from your
12,001 14,000 60% physician, but DO NOT include it with
14,001 16,000 55% your return.
16,001 18,000 50% 5) “caregiver” means either an indi-
18,001 20,000
vidual 18 years of age or over or a
45%
corporation who receives compensa-
20,001 22,000 40%
tion from the credit claimant for provid-
22,001 24,000 35%
ing direct care and supervision to a
PIT-RC - 7 RC - www.tax.state.nm.us
qualifying dependent in New Mexico. tax year. The fee was $10 daily for SECTION VI: Refundable Tax
A caregiver may be related to, but not each child. The taxpayer’s available Credits
a dependent of, the claimant. New Mexico day care credit amount
is $1,200. LINES 23 through 27.
EXAMPLE: The taxpayer is a single If you are claiming any of the refund-
parent who provides over 50% of the On the Child Day Care Credit Work- able tax credits on lines 23 through
support of a dependent child. The sheet, the taxpayer enters the first 27 and no other refundable rebate or
taxpayer attended school from Janu- child’s name and age in columns A and credit on Form PIT-RC, then follow
ary through May and became gainfully B. The number of days of care (200) these special procedures for complet-
employed full time on June 1. The tax- is entered in column C. The taxpayer ing Schedule PIT-RC:
payer had child care expenses for the enters $8 in column D even though
entire year from a caregiver located in the actual amount paid out was $10. Enter the name and social security
New Mexico. The taxpayer was not The maximum daily amount for com- number of the primary taxpayer shown
compensated or reimbursed for child puting the credit is $8. Two hundred on pages 1 and 2 of Schedule PIT-RC.
day care services during the tax year. times $8 equals $1,600 (column E). Complete the applicable lines 23, 24,
The taxpayer can claim the credit for Forty percent of $1,600 equals $640. 25, 25a, 26 or 27 only and enter the
child care only for expenses from June Because $640 is greater than $480 total on line 28. Important: If claiming
through December while the taxpayer (the maximum allowable amount per the working families tax credit, you
was employed. The taxpayer may not child), the taxpayer enters $480 in must complete both lines 25 and 25a,
count expenses for child care from column G. or the credit will be denied. Carry the
January through May. amount on line 28 to line 21 of Form
The taxpayer computes the credit PIT-1 for 2008. Continue with the line
To calculate your allowable Child Day amounts for the second and third instructions and remaining steps for
Care Credit, complete the Child Day child in the same way. The sum for completing the Form PIT-1. You must
Care Credit Worksheet found on page the three children is $1,440. It is more submit Schedule PIT-RC, and any
11 of the Schedule PIT-RC instruc- than $1,200 (the maximum allowable other documentation required, to the
tions. Each caregiver is required to credit amount), so the taxpayer enters Department with Form PIT-1.
give you a Form PIT-CG, Caregiver’s $1,200 on line 19.
Statement. The information on the LINE 23.
PIT-CG is necessary to complete EXAMPLE: More than one rate paid Refundable Medical Care Credit for
the worksheet. Submit a copy of the for child care. The taxpayer’s child Persons 65 or Older
Child Day Care Credit Worksheet and received 100 days of care at $7 per
all Form(s) PIT-CG, with your New day and 50 more days at $10 per day. If you or your spouse is 65 years of
Mexico Personal Income Tax return. The taxpayer’s available day care age or older and you paid unreim-
Keep the original for your records. credit amount is $440. bursed and uncompensated medical
care expenses of $28,000 or more
LINE 19. From the Child Day Care On the Child Day Care Credit Work- during tax year 2008, you may claim
Credit Worksheet, enter the sum of sheet, the taxpayer enters the child’s a tax credit of $2,800. The medical
the amounts in column G, but no more name and age in columns A and B. In care expenses may be for the care
than $1,200. This is your available columns C and D, the taxpayer enters of any combination of yourself, your
Child Day Care Credit. 100 (days of care) and $7 (amount spouse or dependents. The tax credit
paid per day). One hundred times $7 is allowed for out-of-state residents
LINE 20. Enter the total of qualified equals $700 (entered in column E). with income tax responsibility to New
dependents receiving child day care Forty percent of $700 equals $280 Mexico.
services. (entered in column G).
Enter $2,800 if you qualify. Married
couples filing separate returns may
LINE 21. Enter the amount of federal On the next line of the worksheet the
each claim one-half of the credit that
child care credit you claimed on your taxpayer writes, “same child”. The
would have been allowed on a joint
federal income tax return. taxpayer enters 50 (days of care) in
return.
column C and $8 (maximum daily
LINE 22. Subtract line 21 from line amount for this credit although the If you are eligible to claim the refund-
19. This is the amount of New taxpayer actually paid $10 per day) in able medical care credit for persons
Mexico Child Day Care Credit you column D. Fifty times $8 equals $400 age 65 years or older, you are also
may claim. (entered in column E). Forty percent eligible to claim the medical care
of $400 equals $160. expense exemption for persons 65
EXAMPLE: More than one child. The years or older reported on line 16 of
taxpayer’s three children each re- The sum of the two partial credit Schedule PIT-ADJ allowing an addi-
ceived 200 days of care. The taxpayer amounts for this child is $440, entered tional tax benefit. You must complete
was not compensated or reimbursed on line 19. Schedule PIT-ADJ to claim the tax
for child day care services during the exemption.
PIT-RC - 8 RC - www.tax.state.nm.us
The types of medical expenses that LINE 25. You may claim the Special Needs
you may include are described in the Working Families Tax Credit Adopted Child Tax Credit if:
instructions for line 13, Form PIT-1 with • you file a New Mexico personal
the following exception. You may also Enter on line 25a, the amount of Fed- income tax return;
include the portion of unreimbursed eral Earned Income Tax Credit (EITC) • you are not a dependent of
and uncompensated medical care reported on your 2008 Federal Income another taxpayer;
expenses which have been included Tax Return. Multiply the amount on • you have adopted a special needs
in itemized deductions on Schedule A, line 25a by 10% (.10) and enter on child, and
federal Form 1040. line 25. Important: you must complete • the special needs adopted child is
both lines 25 and 25a, or the credit will claimed as a dependent on your
To compute the unreimbursed and un- be denied. federal return.
compensated medical care expenses
for purposes of this credit, you may An individual who was a New Mexico A Special Needs Adopted Child
include all of the qualified expenses resident during any part of 2008 and means an individual who may be over
which are used to compute the refund- who files a New Mexico personal 18 years of age and who is certified
able medical care expense exemption income tax return may claim a credit by the Children, Youth and Families
for persons 65 years or older reported in an amount equal to ten percent Department or a licensed child place-
on line 16 of Schedule PIT-ADJ. Unre- of the Federal EITC for which that ment agency as meeting the definition
imbursed and uncompensated medi- individual is eligible for the same tax of a “difficult to place child” pursuant
cal care expenses used to compute year. An individual who qualifies for to the Adoption Act; and the classifi-
the medical care expense deduction the working families tax credit may cation is based on physical or mental
claimed on line 13, Form PIT-1 also receive a refund if the credit exceeds impairment that is at least moderately
may be used to compute the medical the income tax liability for the tax year disabling.
expenses for purposes of this credit. of the claim.
In the first year you claim the special
LINE 24. To claim the working families tax needs adopted child tax credit for a
Film Production Tax Credit credit, you must enter on line 25a, the qualifying adopted child, you will need
amount of the Federal EITC reported to attach a copy of the certificate
Enter the amount of approved film on your 2008 federal Form 1040, issued by the Human Services Depart-
production tax credit claimed on Form 1040A, or 1040EZ or your credit will ment or the licensed child placement
RPD-41228. Attach a copy of the be denied. agency for each child you adopted in
credit approval from the Taxation and that year.
Revenue Department. The Federal EITC is a refundable fed-
eral income tax credit for low-income If you claimed the credit for adoption
The film production tax credit provides working individuals and families. The of special needs children for a qualify-
a credit for an eligible film production credit reduces the amount of federal ing adopted child in a prior year, you
company. The amount of the credit tax you may owe and may increase do not need to attach the supporting
is equal to 25% of direct production your refund from the IRS. To see if documentation to the return. Maintain
and direct postproduction expendi- you may claim the credit, read the the documentation in your files.
tures. Direct production expenditures rules in the federal 1040, 1040A, and
must be directly attributable to the 1040EZ tax packages or see IRS NOTE: Effective January 1, 2007,
production in New Mexico of a film Publication 596. You may also read the exemption for adoption of special
or commercial audiovisual and both about the EITC credit on the IRS web needs children has been repealed,
direct and post production expendi- site at www.irs.gov and download the and a new special needs adopted child
tures must be subject to taxation by publication there. tax credit was created. Those who
the State of New Mexico. Excluded previously claimed the exemption,
from the credit are costs for which the LINE 26. may qualify for the new credit.
film production company has already Special Needs Adopted Child Tax
issued a nontaxable transaction cer- Credit LINE 27.
tificate under Section 7-9-86 NMSA Renewable Energy Production Tax
1978. To obtain approval for the credit, If you qualify for the Special Needs Credit
first apply to the New Mexico Film Adopted Child Tax Credit, enter
Office of the Economic Development $1,000 for each special needs adopted Enter the amount of approved renew-
Department (EDD). When it receives child on line 26 of Schedule PIT-RC. able energy production tax credit
approval from EDD, the film produc- If you are married filing separately, claimed on Form RPD-41227, Renew-
tion company may apply for Taxation enter $500 for each child. A husband able Energy Production Tax Credit
and Revenue Department approval and wife who file separate returns Claim Form.
of the credit. See the Application for may each claim only one-half of the
Film Production Tax Credit, Form credit. To claim the credit you must attach to
RPD-41229. Form PIT-1, a completed Form RPD-
PIT-RC - 9 RC - www.tax.state.nm.us
41227, the certificate of eligibility is- personal income tax liability for the LINE 28.
sued by Energy, Minerals and Natural tax year: Total Rebates and Credits
Resources Department (EMNRD), 1. the excess may be carried forward Claimed
the Allocation Notice approved by for 5 years, or
EMNRD, if applicable, and docu- 2. if the tax credit was issued with re- Add the amounts, if any, on lines 14,
mentation of the amount of electricity spect to a qualified energy gener- 17c, 18c, 22, 23, 24, 25, 26 and 27.
produced by the facility in the tax year. ator that first produced electricity Enter the total on line 28. Transfer the
The credit may be deducted from the using a qualified energy resource amount on line 28 to line 21 of your
taxpayers corporate or personal in- on or after October 1, 2007, the Form PIT-1.
come tax liability for which the credit is excess shall be refunded to the
claimed. If the amount of the tax credit taxpayer.
exceeds the taxpayer’s corporate or
Obtenga su reembolso
de impuestos a través
del internet.
www.tax.state.nm.us
¡Es Rápido, Fácil y Seguro!
PIT-RC - 10 RC - www.tax.state.nm.us
New Mexico Taxation and Revenue Department
Child Day Care Credit Worksheet
Print your name (first, middle, last) YOUR SOCIAL SECURITY NUMBER
You must answer both questions.
Yes Were the child day care expenses reimbursed or otherwise paid by another party? You
No may only claim uncompensated and unreimbursed child day care expenses.
Yes Was public assistance received under the Temporary Assistance for Needy Families, New
Mexico Works Act or a similar program during that part of the tax year for which the credit
No
was claimed? You may not claim child day care expenses during periods in which you
received assistance from one of these programs?
NOTE: The Department checks with appropriate state agencies to verify whether a claimant is receiv-
ing public assistance.
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G
Name of Child Age of Child Number of days Amount paid per day Day Care Expenses Multiply Col. E by .40 Available day care credit
of care not to exceed $8.00 Multiply Col. C by Col. D Enter in Column G not to exceed $480/child
.40
.40
.40
.40
.40
.40
.40
To complete the Child Day Care Credit Worksheet:
Column A: Enter the name of the qualified dependent child who received day care during 2008. If you
need more space, attach a worksheet in the same format.
Column B: Enter the age of the child at the end of the 2008 tax year.
Column C: Enter the total number of days of qualified child day care service provided for the child.
Column D: Enter the amount paid per day for the child. The maximum is $8 per child per day. Only
include amounts actually paid by you; do not include amounts that were reimbursed or
paid for by another party (such as your employer or the State of New Mexico).
Column E: Multiply column C by column D and enter the result.
Column G: Multiply column E by column F (.40) and enter the result, but no more than $480 per
child.
Add the amounts in column G and enter the total on line 19, Schedule PIT-RC, but no more than
$1,200.
ATTACH TO FORM PIT-1
PIT-RC - 11 RC - www.tax.state.nm.us
REV. 11/2007
PIT-CG NEW MEXICO CAREGIVER'S STATEMENT
This schedule must be completed by the caregiver and given to the taxpayer to be attached to Form PIT-1 and Schedule PIT-1-RC. A sepa-
rate PIT-CG should be completed by each caregiver who provided day care services for which a credit amount is being claimed. Failure to
attach the required PIT-CG to the Form PIT-1 will cause the amount claimed for the child day care credit to be disallowed.
The caregiver must furnish the information on the number of days of care provided each month and the compensation received for each
child for whom the credit is being claimed. The three qualification questions must be completed and the name, address, phone number and
New Mexico CRS identification number of the caregiver provided. For each child receiving day care services, provide the name and social
security number. The statement must be signed by the caregiver.
Do not include any charges for child care for periods of unemployment or for child care provided either before or after work (plus any neces-
sary travel time) or for periods a taxpayer is attending school.
Taxpayer's first name & initial (as it appears on Form PIT-1) Last name Taxpayer's social security number
PART I - QUALIFICATIONS FOR INDIVIDUAL CAREGIVERS
Caregiver's name Address New Mexico CRS ID or social security
number
1. Were you, as a caregiver, age eighteen (18) or over at the time the care was performed? YES NO
2. Did you, as a caregiver, provide day care service for less than 24 hours daily? YES NO
3. Were you a dependent of the above taxpayer for whom you provided child care services? YES NO
PART II - STATEMENT OF COMPENSATION RECEIVED BY CAREGIVER
CHILD 1, Name and SSN CHILD 2, Name and SSN CHILD 3, Name and SSN CHILD 4 , Name and SSN
YEAR
Compensation Compensation Compensation Compensation
No. of No. of No. of No. of
20____ Days
Amount Received
Days
Amount Received
Days
Amount Received
Days
Amount Received
Per Month Per Month Per Month Per Month
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
TOTAL
Caregiver's signature __________________________________________ Caregiver's phone number ____________________
PART III - TAXPAYER: IF YOU COULD NOT OBTAIN A STATEMENT FROM CAREGIVER, COMPLETE THIS PORTION
OF THE FORM.
If all reasonable attempts to complete this schedule have been made, and the taxpayer is still unable to locate the caregiver or to obtain the required informa-
tion, the taxpayer should complete Part I and II of this schedule based on previous billings or other records, provide the name and address of the caregiver
and explain below why the caregiver did not complete the statement.
Taxpayer's signature ____________________________________________
PIT-RC - 12 RC - www.tax.state.nm.us
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