The bill amends the existing law regarding the Social Security income exemption under the Income Tax Act in New Mexico. It removes the income cap that previously limited eligibility for the exemption based on adjusted gross income thresholds for different filing statuses, including married individuals, heads of household, and single individuals. Specifically, the previous income limits of $75,000 for married individuals filing separately, $150,000 for heads of household and married individuals filing jointly, and $100,000 for single individuals have been deleted.

In place of these income caps, the bill introduces a new provision stating that the exempted amount shall not exceed the individual's net income. This change aims to provide broader access to the Social Security income exemption for individuals regardless of their income level. The new provisions will take effect for taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-5.14