The bill amends the Social Security income exemption under the Income Tax Act in New Mexico by removing the income cap that previously limited eligibility based on adjusted gross income. Specifically, the existing law stipulated that individuals could only claim the exemption if their adjusted gross income did not exceed certain thresholds: $75,000 for married individuals filing separately, $150,000 for heads of household, surviving spouses, and married individuals filing jointly, and $100,000 for single individuals. These income limits have been deleted from the law.

In place of the income caps, the new language allows individuals to claim an exemption equal to the amount of Social Security income included in their adjusted gross income, with the stipulation that the exempted amount shall not exceed the individual's net income. This change aims to provide broader access to the exemption for individuals receiving Social Security income, effective for taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-5.14