The bill amends Section 7-2-5.14 of the New Mexico Income Tax Act to remove the income cap for the Social Security income exemption. Previously, individuals were limited in claiming this exemption based on their adjusted gross income, with specific thresholds set for different filing statuses, including $75,000 for married individuals filing separately, $150,000 for heads of household and married individuals filing jointly, and $100,000 for single individuals. The new language eliminates these income limits, allowing individuals to claim an exemption equal to the amount of Social Security income included in their adjusted gross income without regard to their total income.

Additionally, the bill specifies that the exempted amount shall not exceed the individual's net income. The changes will take effect for taxable years beginning on or after January 1, 2025, thereby providing a broader tax relief for individuals receiving Social Security income in New Mexico.

Statutes affected:
introduced version: 7-2-5.14