The bill amends the New Mexico Income Tax Act by removing the income cap for the Social Security income exemption. Previously, individuals were only eligible for this exemption if their adjusted gross income did not exceed specific 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. The new language eliminates these income limits, allowing all individuals to claim an exemption for the amount of Social Security income included in their adjusted gross income.

The changes will take effect for taxable years beginning on or after January 1, 2026. This amendment aims to provide broader access to the Social Security income exemption, potentially benefiting a larger number of taxpayers in New Mexico by allowing them to exclude their Social Security income from net income calculations without regard to their overall income level.

Statutes affected:
introduced version: 7-2-5.14