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INSTRUCTIONS FOR 2020 PIT-RC
NEW MEXICO REBATE AND CREDIT SCHEDULE
General Information
You can find general information about Form PIT‑RC, New Modified gross income is different from federal adjusted
Mexico Rebate and Credit Schedule, starting on this page. gross income, federal taxable income, or New Mexico
taxable income. For details, see What is Modified Gross
The instructions later in this document provide additional, Income? on page RC‑4.
specific eligibility requirements for each rebate and credit.
Instructions are given for lines when additional guidance is SECTION VI
helpful or if the item is unique to New Mexico. To claim the refundable tax credits in Section VI, you do not
need to meet the basic qualifications for Sections I to V. You
SECTIONS I TO V also do not need to complete Section I. For details about
To claim any of the rebates or credits reported in Sections II Section VI, see page RC‑10, and the instructions for lines
to V, you must answer the questions in SECTION I. 23 and 24 later in this document.

Basic Qualifications SECTION VII
To claim any refundable rebates and credits in Sections II to All claimants must complete line 25.
V, you must meet all these qualifications:
• You must have been a resident of New Mexico during PREPARING YOUR SCHEDULE PIT-RC
the tax year. Follow these steps to prepare and complete Schedule PIT‑
• You must have been physically present in New Mexico RC:
for at least six months during the tax year (except to 1. Prepare your federal return. Even if you are not required
claim the child day care credit). to file a federal return, it is easier to complete the PIT‑
• You were not eligible to be claimed as a dependent of RC after you fill out a sample federal return.
another taxpayer for the tax year. 2. In the PIT‑1 instructions, read page 19, What To Do
• You were not an inmate of a public institution for more Next.
than six months of the tax year. 3. Refer to the table on the next page to find the informa‑
tion you need to support the rebates and credits you can
Allowable Household Members and Extra Exemptions, claim.
Lines 1 to 3 4. Complete PIT‑RC by using the instructions starting on
To claim the Section II, Low Income Comprehensive Tax Re‑ page RC‑3.
bate, you must calculate total allowable household members 5. Check these entries on your PIT‑RC:
and extra exemptions. In Section I, complete lines 1 to 3 to • Make sure your arithmetic is correct.
calculate the total so you can claim this rebate. • When required, make sure you limited your calcula‑
tions to the maximum amount allowed for the rebate
NOTE: New Mexico uses the same definitions and qualifica‑ or credit.
tions as the Internal Revenue Service (IRS) to determine if • On pages 1 and 2, make sure your name and social
someone is your dependent. For dependent definitions and security number are correct.
qualifications, see federal Form 1040 or 1040SR instructions. • If you are claiming one or more rebates and credits in
Sections II to V, make sure Section I is complete and
Modified Gross Income, Line 12 that you answered all required questions.
Eligibility for all rebates and credits in Sections II through V • If you claim the additional low income property tax
depends on Modified Gross Income, line 12. rebate for Los Alamos or Santa Fe County residents

Modified Gross Income Limitations for 2020 Refundable Tax Credits
in Section VI
If your modified
gross income is: You may qualify for: • Refundable medical care
credit for persons age 65 or
$22,000 or less Low Income Comprehensive Tax Rebate (Section II) older
$16,000 or less Property Tax Rebate, if you are 65 or older (Section III) • Special needs adopted child
$30,160 or less New Mexico Child Day Care Credit (Section V) tax credit

Los Alamos or Santa Fe County Residents Only
$24,000 or less Low Income Property Tax Rebate for Los Alamos or
Santa Fe County Residents (Section IV)

PIT-RC RC‑1 www.tax.newmexico.gov

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in Section IV, make sure you mark the box indicating any part of the tax year, mark the box. If married filing jointly
the county where you reside. and if both spouses were residents of New Mexico during
6. Transfer the amount on line 25 to your PIT‑1, line 24. the tax year, mark both boxes.
Make sure you copy the amount correctly.
7. Submit the PIT‑RC and other required documents with Statement B. If you were physically present in New Mexico
your PIT‑1. for at least six months during 2020, mark the box. If married
filing jointly and if both spouses were physically present in
TOP OF PAGE 1 New Mexico for at least six months during 2020, mark both
Enter the primary taxpayer’s name and social security num‑ boxes.
ber exactly as they appear on your PIT‑1 return.
Statement C. If you were not a dependent, or if you do
If you are claiming rebates and credits under Sections II to not qualify as a dependent of another person for federal
V, complete all of Section I to avoid denial of the rebate income tax purposes, mark the box. If you are married filing
or credit. If you are only claiming refundable tax credits in jointly and if both spouses were not eligible to be claimed
Section VI, skip Sections I to V. as a dependent of another taxpayer for income tax purposes
in 2020, mark both boxes.
SECTION I
Qualifications for Credits and Rebates Reported in If you were a dependent of another taxpayer, you do not
Sections II to V qualify:
If statement A, B, C, or D is true for you, mark the TAX- • For any rebates
PAYER box(es). If you are married filing jointly, mark the true • For the child day care credit
statements in the SPOUSE box(es). If you are not married, • As a household member, for purposes of rebates or cred‑
leave those boxes blank. If a statement is false, leave the its
box blank.
Whether or not you were actually claimed as a dependent on
Statement A. If you were a resident of New Mexico during another person’s federal return, you qualify as a dependent.

If you received any of the following in 2020 You need
Salary or wages All 2020 wage and tax statements

An annuity, pension, retirement pay, IRA distributions, Federal Form(s) 1099‑R, RRB‑1099, and SSA‑1099
Railroad Retirement or sick pay, or social security benefits
Gambling or lottery winnings Records of the amounts and, if issued to you, Form W‑2G

Public assistance from Temporary Assistance to Needy Records of the amounts you received
Families (TANF), New Mexico Works Act or similar program,
welfare benefits, or Supplemental Security Income (SSI)

Any other income—whether or not taxable—such as an Records of the amounts you received
insurance settlement, a scholarship or grant, VA benefits,
income from an inheritance or trust, gifts of cash or market‑
able property, alimony, or child support

To claim the following rebates and credits You need
Low Income Property Tax Rebate for Los Alamos or Santa Records of property tax billed for 2020 on your principal place
Fe County Residents of residence in Los Alamos or Santa Fe County.
Property Tax Rebate For Persons 65 or Older Records of the property tax billed for 2020 or rent paid on
your principal place of residence.
New Mexico Child Day Care Credit Child Day Care Credit Worksheet and Form PIT‑CG, New
Mexico Caregiver’s Statement, from each person who pro‑
vided child day care during 2020.
Refundable Medical Care Credit for Persons 65 or Older Receipts and records of your qualifying expenses. See in‑
structions for line 23.

Special Needs Adopted Child Tax Credit for a qualifying Copy of certificate issued by Children Youth and Families
adopted child during the first year of your claim Department or the licensed child placement agency for each
child you adopted that year. See instructions for line 24.

PIT-RC RC‑2 www.tax.newmexico.gov

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If you are a dependent with a spouse who was not a de‑ Income Comprehensive Tax Rebate.
pendent of another taxpayer, your spouse may still qualify
to claim rebates or credits. Example 1. A married couple filing a joint return reports six
exemptions (which includes their four children) on PIT‑RC,
Statement D. If you were not an inmate of a public institution line 1. One spouse lived out of state for seven months of
for more than six months in 2020, mark the box. If married the tax year, and the other spouse lived in New Mexico with
filing jointly and if both spouses were not inmates of a public their four children. Because the out‑of‑state spouse was not
institution for more than six months in 2020, mark both boxes. physically present in New Mexico for at least six months, the
couple makes these entries:
If you were an inmate of a public institution for more than • Line 1 is 6.
six months, you do not qualify for rebates or credits, and • Line 2a is 1.
you do not qualify as a household member for purposes of The allowable household members on line 2b is 6 ‑ 1 = 5.
rebates or credits. If you were an inmate and your spouse
was not an inmate, your spouse may still qualify to claim These 5 exemptions are for the spouse who lives in New
rebates or credits. Mexico with the couple’s four children. Five household
members are allowed when claiming the low income com‑
LINES 1 TO 3 prehensive tax rebate.
Calculate Allowable Household Members and Extra
Exemptions If both taxpayers lived out of state for seven months, no
Use lines 1 to 3 to calculate household members and extra household members qualify for the rebate as shown with
exemptions for Section II so that you can claim the low in‑ these entries:
come comprehensive tax rebate. • Line 1 is 6.
• Line 2a is 6.
LINE 1. Number of Exemptions • Line 2b is 0.
Enter the number of exemptions from PIT‑1, line 5. This The allowable household members on line 2b is 6 ‑ 6 = 0.
includes you, your spouse if filing a joint return, your quali‑
fying dependents, and your qualifying other dependents as Example 2. The taxpayer qualifies for tax rebates, but has a
reported on your federal return. dependent who is out of state temporarily to attend school.
The dependent is still a resident of New Mexico. Although
LINES 2 and 3 the dependent may be out of state for most of the year, the
Allowable Household Members and Extra Exemptions taxpayer may claim a rebate counting that dependent as a
for Purposes of Claiming Low Income Comprehensive household member.
Tax Rebates
Example 3. If a citizen of another country is a resident of
LINE 2a. Enter the number of household members who New Mexico, that person may claim the tax rebates. If the
DO NOT qualify. If all household members qualify, leave citizen’s spouse, children, or other dependents are not
this field blank. residents of New Mexico, the citizen cannot claim a rebate
based on exemptions for them.
Household members who do not qualify: You or your
spouse must meet the general qualifications listed below, or LINE 2c.If you oryour spouse (if filing a joint return), but not
all members of your household do not qualify. You or your both, are blind as defined for federal income tax purposes,
spouse must: enter 1.
• be a resident of New Mexico during the tax year;
• be physically present in New Mexico for at least six If you and your spouse are blind as defined for federal in‑
months during 2020; come tax purposes, enter 2.
• be neither eligible to be claimed, nor actually claimed, as
a dependent of another taxpayer for 2020, and; LINES 2e and 2f. Additional special exemptions are avail‑
• not be an inmate of a public institution for more than six able if you or your spouse (if filing a joint return) are age
months during 2020. 65 or older on the last day of the tax year. Enter on2 the
lines that apply.
If either you or your spouse meet the general qualifications,
but not both, then the non‑qualifying spouse is not eligible. LINE 2h. If you and your spouse are filing separately, you
must subtract the number of household members and extra
Dependents who are non‑residents of New Mexico DO exemptions your spouse claimed on the spouse’s Schedule
NOT qualify as a household member for purposes of claim‑ PIT‑RC, line 2g.
ing the Low Income Comprehensive Tax Rebate. Include
nonresident dependents on line 2a of Schedule PIT‑RC. LINES 3. Combine the total of lines 2g and 2h and enter the
Dependents who are residents of New Mexico, but are not amount on line 3.
physically present in New Mexico for six months, qualify
as household members for purposes of claiming the Low‑

PIT-RC RC‑3 www.tax.newmexico.gov

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LINES 4 TO 12 LINE 6. Enter your unemployment benefits from all sources
Calculate Modified Gross Income and any workers’ compensation benefits you received. Do
Before you complete lines 4 to 12, read New Mexico’s defini‑ not include medical benefits.
tion of modified gross income that follows.
LINE 7. Enter the amount you received from public as‑
What is Modified Gross Income? sistance, TANF or a similar program, general assistance
Modified gross income (also called MGI) is unique to New benefits, and SSI. Do not include medical care benefits, rent
Mexico law. In general, modified gross income is all income subsidies, weatherization, energy, or housing rehabilitation
and other compensation you receive from all sources (re‑ benefits.
gardless of whether that income is taxable by the U.S. Gov‑
ernment or the State of New Mexico) for you, your spouse, LINE 8. Enter your net profit from business, farm, or rentals.
and your dependents. This includes income from self‑employment. If it is a loss,
enter zero. If you have more than one business, farm, or
You may not reduce modified gross income by deductions or rental property, you may not offset the loss of one business,
offset modified gross income by losses allowed for income farm, or rental against the profit of another business, farm,
tax purposes under the New Mexico Income Tax Act or under or rental or against any other source of income.
the Internal Revenue Code.
LINE 9. Enter your gross capital gains. Do not reduce them
When calculating modified gross income, include the modi‑ by capital losses. Include in capital gains any gain on the
fied gross income of the taxpayer and all household mem‑ sale of a personal residence in 2020 that is deferred or not
bers. Even if you are married and filing separate returns, the subject to federal income tax.
total modified gross income of both spouses must appear in
the calculation. LINE 10. Enter all gifts of cash or marketable tangible items
no matter who gave them to you. You must give a reason‑
Because the following items are excluded from the defini‑ able value to the gifts.
tion of modified gross income, you do not need to report
any of them: LINE 11. Enter all income not included on lines 4 to 10, re‑
• Money lent to you that you are legally bound to repay gardless of whether it is taxable as federal or state income.
• Supplemental Nutrition Assistance Program (SNAP) This income may include, but is not limited to:
benefits or Women, Infants, and Children (WIC) vouch‑ • Interest, including interest from U.S. Government obliga‑
ers tions and interest on state and municipal bonds
• Payments by any party or by Medicare or any similar plan • Dividends
for hospital, dental, medical, or drug expenses whether or • Gross gambling, gaming, and lottery winnings from any
not the payment is made directly to the insured/recipient source without reducing winnings by any losses
or to a third‑party provider, and whether or not a premium • Insurance or court settlements
is paid • Scholarships, fellowships, prizes, awards, or grants
• Money received during the year as low income or prop‑ • Other cash prizes and awards
erty tax rebates or as child day care credit • VA benefits
• Medical care payments made by Medicaid, the State Hu‑ • Income from an estate or trust
man Services Department, the County Indigent Hospital • Alimony, separate maintenance, and child support pay‑
Claims Fund, CHAMPUS, Veterans Administration (VA), ments
or Workers’ Compensation • Receipt of contribution withdrawals from deferred com‑
• Rent subsidies, weatherization, energy, and housing re‑ pensation plans
habilitation benefits, such as Section 8 housing assis‑ • Royalties from any source
tance • Distributions from employee stock ownership plans or
• Stipends paid to foster grandparents other employee benefit plans, except for medical benefits
• Free room and board when not considered compensa‑ • Income from discharge of indebtedness not involving bank‑
tion ruptcy
• Value of a legacy, devise, bequest, or inheritance re‑
LINE 4. Enter your wages, salaries, tips, etc. If your wages, ceived
salaries, tips, etc. were exempt or deducted from federal • Distributions from partnerships, S corporations, or similar
adjusted gross income on Schedule PIT‑ADJ, you must in‑ pass‑through entities
clude them on line 4 to calculate your modified gross income. • Amounts received from endowment contracts
• The value of room and board received as compensation
LINE 5. Enter the gross amount of social security benefits, • All ordinary gains from dealing in or selling property
pensions, annuities, and Railroad Retirement benefits. If • Cost‑of‑living, moving, or other allowances received as
Medicare or other deductions were taken out of pensions or compensation.
annuities, show the full pension or annuity amount before
deductions.

PIT-RC RC‑4 www.tax.newmexico.gov

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SECTION II 65 or older, principal place of residence is the dwelling and
Low Income Comprehensive Tax Rebate related structures—whether owned or rented—and only
the amount of surrounding land reasonably necessary to
LINE 14. To qualify for this rebate, all of the following must use the dwelling as a home. The surrounding land may not
be true: exceed five acres.
• You have a modified gross income of $22,000 or less. If you have more acreage than is reasonably necessary to
• You were a resident of New Mexico during the tax year. maintain a dwelling, adjust the amount of property tax billed
• You were physically present in New Mexico for at least to reflect the principal place of residence only. You may use
six months in 2020. only this smaller amount to calculate the tax rebate.
• You are not eligible to be claimed as a dependent of an‑
other taxpayer for 2020. Example. If a taxpayer’s principal place of residence is
• You were not an inmate of a public institution for more located on 25 acres, include the total amount of property
than six months in 2020. tax billed for the house alone plus the part of the land that
is reasonably necessary to maintain the residence, but not
To find the amount of your low income comprehensive tax more than 5 acres.
rebate, follow these steps:
1. In the left column of Table 1, 2020 Low Income Compre- If only one acre is reasonably necessary to maintain the
hensive Tax Rebate Table, find the line that includes the residence, divide the tax due on the land by the total number
modified gross income you entered on line 13. of acres for which property tax was billed.
2. Read across to the column that shows the number of ex‑
emptions you calculated on line 13a. This amount is your Add the property tax billed on the home to the amount of
low income comprehensive tax rebate. property tax billed on the land. The total is the amount of
3. All taxpayers, other than married couples filing separate property tax billed. Use this total amount to calculate your
returns, enter this rebate amount on PIT‑RC, line 14. Mar‑ rebate.
ried couples filing separate returns divide this amount by
2 and then enter the result on PIT‑RC, line 14.
TABLE 1. 2020 Low Income Comprehensive Tax Rebate Table
NOTE: Include your rebate amount on PIT‑RC, Modified Gross Income Number of Exemptions from PIT‑RC, Line
line 25. from PIT‑RC, Line 13 13a
6 or
SECTION III But not over 1 2 3 4 5
more
Property Tax Rebate for Persons 65 or Older 0 500 120 160 200 240 280 320
This rebate is for property tax billed or rent paid 501 1,000 135 195 250 310 350 415
during tax year 2020 on your principal place of 1,001 1,500 135 195 250 310 350 435
residence in New Mexico. The property tax rebate 1,501 3,500 135 195 250 310 350 450
cannot exceed $250 or, for a married taxpayer filing 3,501 4,500 135 195 250 310 355 450
a separate return, the rebate cannot exceed $125.
4,501 5,000 125 190 240 305 355 450
IMPORTANT: No property tax rebate is available 5,001 5,500 115 175 230 295 355 430
for property that is not subject to property tax. 5,501 6,000 105 155 210 260 315 410
6,001 7,000 90 130 170 220 275 370
To qualify for a rebate all of the following must be 7,001 8,000 80 115 145 180 225 295
true:
8,001 9,000 70 105 135 170 195 240
• You have a modified gross income of $16,000
or less. 9,001 10,000 65 95 115 145 175 205
• You were age 65 or older on the last day of the 10,001 11,000 60 80 100 130 155 185
tax year. 11,001 12,000 55 70 90 110 135 160
• You were a resident of New Mexico during the 12,001 14,000 50 65 85 100 115 140
tax year.
14,001 15,000 45 60 75 90 105 120
• You were physically present in New Mexico for
at least six months in 2020. 15,001 16,000 40 55 70 85 95 110
• You are not eligible to be claimed as a depen‑ 16,001 17,000 35 50 65 80 85 105
dent of another taxpayer for 2020. 17,001 18,000 30 45 60 70 80 95
• You were not an inmate of a public institution for 18,001 19,000 25 35 50 60 70 80
more than six months in 2020.
19,001 20,000 20 30 40 50 60 65
What is Principal Place of Residence? 20,001 21,000 15 25 30 40 50 55
For purposes of the property tax rebate for persons 21,001 22,000 10 20 25 35 40 45

PIT-RC RC‑5 www.tax.newmexico.gov

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LINE 15. Complete line 15 only if you own your principal Subtract line 17b (maximum property tax liability) from line
place of residence and you were billed property tax. The 17a (allowable amount of property tax billed and rent paid),
property tax you claim on line 15 is only that part of the an‑ and then divide the difference by 2. Enter this amount on
nual property tax billed for the period you lived there. line 17c.

For the definition of “principal place of residence,” seeWhat If the amount is less than zero, enter 0. If the amount is $125
is Principal Place of Residence? beginning on page RC‑5. or over, enter $125 (the maximum allowed).

Changes in Your Principal Place of Residence TABLE 2. 2020 Maximum Property Tax Liability
If you paid rent for your principal place of residence for part Table
of the year, and you were billed property tax for your princi‑ Maximum Property
pal place of residence for the other part of the year, you can Modified Gross Income from PIT‑RC
Tax Liability
claim both for the parts of the year you lived in the residence.
But Not Over
If you were billed property tax on your manufactured home 0 1,000 20
and you also paid rent for your lot or space, you can claim 1,001 2,000 25
both. 2,001 3,000 30
3,001 4,000 35
LINE 16. Complete line 16 only if you rented your principal
4,001 5,000 40
place of residence in 2020.
5,001 6,000 45
LINE 16a. Complete line 16a only if you paid rent on your 6,001 7,000 50
principal place of residence. 7,001 8,000 55
8,001 9,000 60
Enter the total amount of rent you paid during 2020, including
any rent subsidy paid by a government entity to your landlord. 9,001 10,000 75
10,001 11,000 90
LINE 16b. If a government entity paid a subsidy, mark an 11,001 12,000 105
X in box 16b. 12,001 13,000 120
LINE 16c. Multiply line 16a by 0.06, and enter the product 13,001 14,000 135
in 16c. 14,001 15,000 150
15,001 16,000 180
LINE 17. This rebate is for the property tax billed during tax
year 2020. The property tax rebate may not exceed $250 SECTION IV
or, for a married taxpayer filing a separate return, the rebate Additional Low Income Property Tax Rebate for Los
may not exceed $125. Alamos and Santa Fe County Residents Only
This low income property tax rebate is for property tax paid
IMPORTANT: Make sure to include the amount on line during tax year 2020 on your principal place of residence
17c in the amount on PIT‑RC, line 25. (defined later in this section) in Los Alamos or Santa Fe
County. This property tax rebate may not exceed $350 or,
LINE 17b. To find your maximum property tax liability, follow for a married taxpayer filing a separate return, $175.
these steps:
1. On Table 2, 2020 Maximum Property Tax Liability Table, IMPORTANT: No property tax rebate is available for property
find the Modified Gross Income range for the amount you that is not subject to property tax.
entered on PIT‑RC, line 13.
2. Read across Table 2, 2020 Maximum Property Tax Li- No Age Limit
ability Table to the Maximum Property Tax Liability col‑ You do not need to be 65 or older to be eligible for this re‑
umn, and enter the amount on line 17b. bate. If you are a Los Alamos or Santa Fe County resident
who is age 65 or older on the last day of the tax year, you
LINE 17c. Subtract the amount on line 17b from the amount may be eligible for this rebate and the property tax rebate
on line 17a. Enter the amount of the difference on line 17c. for persons 65 or older on line 17c.

If the amount is less than zero, enter 0 . If the amount is $250 Requirements
or over, enter $250 (the maximum allowed). To qualify for the rebate, all of the following must be true:
• You have a principal place of residence in Los Alamos or
Married Couples Filing Separately Santa Fe County.
Married couples filing separate returns calculate the property • You have a modified gross income of $24,000 or less.
tax rebate in a different way than other taxpayers. • You were a resident of New Mexico during the tax year.

PIT-RC RC‑6 www.tax.newmexico.gov

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• You were physically present in New Mexico for at least six follow these steps:
months in 2020. 1. On Table 3, 2020 Low Income Property Tax Rebate Ta-
• You were not eligible to be claimed as an other dependent ble for Los Alamos or Santa Fe County Residents Only,
of another taxpayer for 2020. find the Modified Gross Income range that includes the
• You were not an inmate of a public institution for more amount you entered on PIT‑RC, line 13.
than six months in 2020. 2. Read across to the Property Tax Rebate Percentage
column, and enter this percentage on line 18b.
Mailing Address Not In Counties
If the mailing address on your 2020 PIT‑1 return is not a LINE 18c. Multiply the percentage on line 18b (property tax
Los Alamos or Santa Fe County address, you must attach rebate percentage) by the amount on line 18a (allowable
a property tax statement to your return. property tax billed). Enter the product on line 18c.

Definition of “Principal Place of Residence” For This If the amount is less than zero, enter 0. If the amount is $350
Rebate or over, enter $350 (the maximum allowed).
For the purposes of the low income property tax rebate for
Los Alamos and Santa Fe Country residents only, principal Married Couples Filing Separately
place of residence is the dwelling and related structures the Married couples filing separate returns calculate the property
taxpayer owns and occupies, and only that amount of sur‑ tax rebate in a different way than other taxpayers.
rounding land reasonably necessary to use the dwelling as
a home. The surrounding land may not exceed five acres. Multiply 18a by 18b, and then divide the product by 2. Enter
For purposes of this credit, a principal place of residence this amount on line 18c.
does not include rented land or structures.
If the amount is less than zero, enter 0. If the amount is $175
If you have more acreage than is reasonably necessary to or over, enter $175 (the maximum allowed).
maintain a dwelling, adjust the amount of property tax billed
to reflect the principal place of residence only. You are re‑ Example. The property tax billed to Los Alamos Resident A
quired to use this smaller amount to calculate the tax rebate. on her principal place of residence was $800 for calendar
year 2020. On line 18a, Resident A enters $800. Because
Table 3. 2020 Low Income Property Tax her modified gross income for2020 was $19,000, Resident
Rebate Table for Los Alamos or Santa Fe A enters on line 18b the property tax rebate percentage
County Residents Only of 45%.
Modified Gross Property Tax
To calculate line 18c, Resident A multiplies $800 by 0.45
Income from PIT-RC, Rebate Percentage
(45%). The result is $360, but because the maximum rebate
Line 13 (of property tax liability)
allowable is $350, she enters $350 on line 18c.
But Not
Over IMPORTANT: Include the amount on line 18c in the amount
0 8,000 75% on PIT‑RC, line 25.
8,001 10,000 70%
SECTION V
10,001 12,000 65% New Mexico Child Day Care Credit
12,001 14,000 60% The child day care credit may not exceed $1,200 or, for a
married taxpayer filing a separate return, $600.
14,001 16,000 55%
16,001 18,000 50% Married individuals maintaining a household for one or more
qualifying dependents, but filing separate returns for a tax
18,001 20,000 45%
year, may each claim only half the credit allowed on a joint
20,001 22,000 40% return.
22,001 24,000 35%
To qualify for the credit, all of the following must be true:
• You have a modified gross income of $30,160 or less.
Boxes 18. Mark either the Los Alamos County box or the
• You were a resident of New Mexico during any part of the
Santa Fe County box to indicate the county where your
tax year.
principal place of residence was located and for which you
are claiming the additional low income property tax rebate. • You provided over half the cost of maintaining a house‑
hold for one or more qualifying dependents for the part of
LINE 18a. For property you own that is your principal place the tax year for which you are claiming the credit (either
of residence, enter the tax billed for the calendar year. separately or jointly with a spouse).
• You were gainfully employed for the part of the tax year
LINE 18b. To find the percentage of your property tax rebate, for which you are claiming the credit.

PIT-RC RC‑7 www.tax.newmexico.gov

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• You were not a recipient of public assistance under TANF, “Cost of maintaining a household” means the expenses for
the New Mexico Works Act, or a similar program during operating the principal place of residence for the mutual ben‑
the part of the tax year for which you are claiming the efit of its occupants. These expenses include property taxes,
credit. mortgage interest, rent, utility charges, upkeep and repairs,
• You have not been reimbursed or compensated for the property insurance, and food. Cost of maintaining a household
amount of child day care expense for which you are does not include cost of clothing, education, medical treatment,
claiming the credit. vacations, life insurance, transportation, or principal payments
on mortgages.
Reimbursed or compensated child day care expenses, like
those paid with pre‑tax dollars under cafeteria and similar “Disabled person” means a person who has a medically de‑
benefit plans, are also ineligible. terminable physical or mental impairment, as certified by a
licensed physician or an advanced practice registered nurse,
Residency Requirement certified nurse‑midwife or physician assistant working within
If you qualify as a first‑year, full‑year, or part‑year resident that person’s scope of practice, that renders the person unable
of New Mexico, you may claim the child day care credit. to engage in gainful employment.
For definitions of residency, see PIT‑1 instructions, page 3,
Definitions. NOTE: The Department may ask you to provide certification of
your disability, but do not include it with your return.
Public Assistance
The Department checks with appropriate state agencies to “Caregiver” means either an individual 18 years of age or older,
verify if you are receiving public assistance. or a corporation that receives compensation from the credit
claimant for providing direct care and supervision to a qualify‑
Caregiver Qualifications ing dependent in New Mexico. A caregiver may be related to,
You cannot claim a credit for amounts paid to a caregiver but not a dependent of, the claimant.
unless all of the following are true for the caregiver:
Example of Attending School and Working. You are a
• If an individual, the caregiver was at least 18 years old
single parent who provides over 50% of the support for a
when providing the care.
dependent child. You attended school from January through
• The caregiver provided the day care service in New Mex‑ May, and became gainfully employed full time on June 1. You
ico. had child care expenses for the entire year from a caregiver
• The caregiver provided day care for less than 24 hours located in New Mexico. You were not compensated or reim‑
daily. bursed for child day care services during the tax year.
• You or your spouse could not claim the caregiver as a
dependent for federal income tax purposes. You can claim the credit for child care only for expenses
from June through December, while you were employed. You
Married Couples Filing Separately cannot count expenses for child care from January through
If spouses file a joint return, both must have been gainfully May, while you were attending school and not working.
employed unless one was disabled for the part of the tax year
for which you are claiming the credit. Couples who maintain Calculating and Claiming the Credit
a household for one or more qualifying dependents, but file To calculate and claim your allowable Child Day Care Credit,
separate returns for a tax year, may each claim only half the follow these steps:
credit allowed for a joint return. 1. From each caregiver, get a Form PIT‑CG, New Mexico
Caregiver’s Statement (see page RC‑12).
Keep Copies of Your Receipts 2. Use the information on the PIT‑CGs to complete the
In case you are selected for audit or verification of the Child Day Care Credit Worksheet (see page RC‑11).
expenses you claim, make sure to keep copies of all your Only include qualifying day care expenses performed in
receipts with your records. New Mexico.
3. Make copies of the Child Day Care Credit Worksheet and
Definitions for Child Day Care Credit all PIT‑CGs. Keep the originals for your records.
“Qualifying dependent” means a person under the age of 15 4. Submit copies of both the Child Day Care Credit Work-
at the end of the tax year who has received the services of a sheet and all PIT‑CG’s with your PIT‑1 return.
caregiver. “Dependent” includes a child of divorced or legally
separated parents when the taxpayer meets all requirements For more information, see Brochure 12, New Mexico’s In-
for claiming a federal child care credit. come Tax Child Day Care Credit 6-18, on www.tax.newmex‑
ico.gov. At the top, click FORMS AND PUBLICATIONS,
“Gainfully employed” means working for others for compensa‑ click on then select Brochures from the Publications folder.
tion, either full‑time or part‑time, or being self‑employed. Actively
seeking employment or school attendance does not qualify as LINE 19. From your Child Day Care Credit Worksheet, en‑
gainful employment. ter the sum of the amounts in Column G, but no more than

PIT-RC RC‑8 www.tax.newmexico.gov

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$1,200. This is your child day care credit. 200 x $8 = $1,600 (amount allowed)

LINE 20. Enter the total of your qualified dependents under For column G, first find 40% of $1,600, as shown next:
age 15 who received child day care services in 2020. 0.40 x $1,600 = $640 (40% of $1,600)

LINE 21. Enter the amount of the federal child and dependent Because $640 is greater than $480 (the maximum allowable
care credit you claimed on your federal Schedule 3, line 1. amount per child), enter $480 in column G.

First-Year Residents Only Calculate the credit amounts for the second and third child
To calculate your federal child and dependent care credit in the same way. The total for the three children is $1,440
adjustment, use For First-Year Residents Only Worksheet (3 x $480). Because this is more than $1,200 (the maximum
to Adjust the Federal Credit for Child and Dependent Care allowable credit amount), you enter $1,200 on line 19.
Credit. Enter the amount from line 5 of the worksheet.
Example For Paying Different Rates.
For First-Year Residents Only You paid more than one rate for child care. Your child re‑
Worksheet to Adjust the Federal Credit for Child and Dependent ceived 100 days of care at $7 per day and 50 more days at
Care Credit
$10 per day.
1. Enter the amount of federal child and
dependent care credit allowed on the
On the Child Day Care Credit Worksheet, enter the child’s
federal Schedule 3, line 2. $
name and age in columns A and B. In columns C and D, enter
2. Enter the number of days during the tax 100 (days of care) and $7 (amount paid per day).
year that you were a resident of New
Mexico.
For column E, calculate the amount allowed for the year,
3. Enter the number of days during the tax as shown here:
year, either 365 days or 366 days for a
leap year. 100 x $7 = $700 (amount allowed)
4. Divide line 2 by line 3. Round to three
decimal places __ . __ __ __ For Column G, first find 40% of 700, as shown next:
5. Multiply line 4 by line 1. Enter this amount 0.40 x $700 = $280 (40% of $700)
on PIT‑RC, line 21. $
On the next line of the worksheet write “same child.” In
column C, enter 50 for days of care. In column D, enter $8
LINE 22. The maximum New Mexico day care credit amount (maximum daily amount) even though the actual amount
is $1,200, where a maximum of $480 is allowable per child. you paid was $10.

To find the amount of New Mexico child day care credit you For column E, calculate the amount allowed for the year,
can claim, subtract line 21 from line 19. as shown here:
50 x $8 = $400 (amount allowed)
Married Couples Filing Separately
If married filing separately, subtract line 21 from line 19,
and divide by 2. Enter this amount on line 22. Couples who For column G, first find 40% of $400, as shown next:
maintain a household for one or more qualifying dependents, 0.40 x $400 = $160 (40% of $400)
but file separate returns for a tax year, may each claim only
half the credit allowed for a joint return. Then add the two partial credit amounts in column G and
enter $440 (the sum) on line 19.
Example For More Than One Child. $280 + $160 = $440
You have three children and each child received 200 days
of care. You were not compensated or reimbursed for child SECTION VI
day care services during the tax year. The fee was $10 daily Refundable Tax Credits
for each child. Complete lines 23 and 24 to claim the refundable tax credits.

On the Child Day Care Credit Worksheet, enter your first If you are claiming only the refundable tax credits on
child’s name and age in columns A and B. Enter the number lines 23 and 24 and no other refundable rebate or credit,
of days of care (200) in column C. Even though the actual follow the special procedures described next to complete
amount you paid was $10, enter $8 in column D because PIT‑RC:
the maximum allowable daily amount for calculating the
credit is $8. 1. Enter the primary taxpayer’s name on page 1 and social
security number on pages 1 and 2.
For column E, calculate the amount allowed for the year, 2. Complete applicable lines 23 and 24.
as shown here: 3. On line 25, enter the total of lines 23 and 24.

PIT-RC RC‑9 www.tax.newmexico.gov

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4. On PIT‑1, line 24. enter the amount from PIT‑RC, line Definitions
25. “Special needs adopted child” means an individual who may
be over 18 years of age and who is certified by the New
LINE 23. Refundable Medical Care Credit for Persons Mexico Children, Youth, and Families Department (CYFD) or
65 or Older a licensed child placement agency as meeting the definition
If you or your spouse are 65 years of age or older, and you of a “difficult to place child” pursuant to the Adoption Act. The
paid unreimbursed and uncompensated medical care ex‑ classification is based on physical or mental impairment or an
penses of $28,000 or more during tax year 2020, you may emotional disturbance that is at least moderately disabling.
claim a tax credit of $2,800. The medical care expenses can
be for the care of any combination of you, your spouse, or Attach the Certificate the First Year
dependents. In the first year you claim the special needs adopted child
tax credit for a qualifying adopted child, you must attach
The tax credit is allowed for non‑residents with income tax a copy of the certificate issued by CYFD or the licensed
responsibility to New Mexico. child placement agency for each qualifying adopted child.

If you qualify for the credit, enter $2,800. Married couples If you claimed the credit for adoption of special needs chil‑
filing separate returns may each claim one‑half of the credit dren for a qualifying adopted child in a prior year, you do not
($1400) that would have been allowed on a joint return. need to attach the supporting documentation to the return.
Keep it in your files.
Additional Benefit on PIT-ADJ
If you are eligible to claim the refundable medical care credit SECTION VII
for persons age 65 years or older, you are also eligible to Total Rebates and Credits Claimed
claim the medical care expense exemption for persons Follow these steps to complete PIT‑RC:
65 years or older reported on Schedule PIT‑ADJ, line 17. 1. Add the amounts, if any, on lines 14, 17c, 18c, 22, 23,
To claim the tax exemption, you must complete Schedule and 24.
PIT‑ADJ. 2. Enter the total on line 25.
3. On PIT‑1, line 24, enter the amount from PIT‑RC, line
Types of Medical Expenses Allowed 25.
The types of medical expenses that you may include are 4. Submit PIT‑RC and any required documentation with
described in the instructions for PIT‑1, line 16 with one ex‑ your PIT‑1 to the Department.
ception. You may also include the part of unreimbursed and
uncompensated medical care expenses which have been
included in your itemized deductions on federal Schedule A.

To calculate the unreimbursed and uncompensated medi‑
cal care expenses for purposes of this credit, the following
expenses may be included:
• Qualified expenses used to calculate the medical care
expense exemption for persons 65 years or older you
reported on PIT‑ADJ, line 17
• Qualified expenses used to calculate the medical care
expense deduction you claimed on PIT‑1, line 16

LINE 24. Special Needs Adopted Child Tax Credit
If you qualify for the special needs adopted child tax credit,
enter $1,000 for each special needs adopted child. If you are
married filing separately, enter $500 for each child. Married
individuals who file separate returns may each claim one‑
half of the credit.

You may claim the special needs adopted child tax credit if
all of the following are true:
• You file a New Mexico PIT‑1 return.
• You are not a dependent of another taxpayer.
• You adopted a special needs child.
• You claimed the special needs adopted child as a de‑
pendent on your federal tax return.

PIT-RC RC‑10 www.tax.newmexico.gov

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PIT‑Childcare
Rev. 07/15/2020 New Mexico Taxation and Revenue Department
Child Day Care Credit Worksheet

Purpose of this worksheet: Use the Child Day Care Credit Worksheet along with the PIT‑CG, New Mexico Caregivers Statement when
claiming the New Mexico Child Day Care Credit on the PIT‑RC. Please print legibly using blue or black ink. Keep original forms for your
records and submit copies with your PIT‑1 return.
First Name, Middle Initial, and Last Name Social Security Number (SSN)

You must answer both questions: (Required)
1. The child day care expenses were not reimbursed or otherwise paid by another party. (You may only claim un‑
compensated and unreimbursed child day care expenses.) True

2. Public assistance was not 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 you are claiming the credit. You may only claim child
day care expenses during periods when you did not receive assistance from one of these programs. (Note: The True
Department checks with appropriate state agencies to verify whether you are receiving public assistance.)

COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F COLUMN G
Name of Child Age of Child Number of Amount paid per Day Care Multiply Available day
days of care day not to exceed Expenses Column E care credit
$8.00 Multiply by 0.40 and not to exceed
Column C enter in Column $480/child
by Column D G

0.40

Total Day Care Credit Available. Enter the sum of Column G.
(If you attach additional pages, enter the sum of Column G from all pages.)

INSTRUCTIONS
This worksheet must be completed using the PIT‑CG, New Mexico Caregiver's Statement your caregiver(s) complete. Keep in mind
depending on your situation you may need to use multiple Child Day Care Credit Worksheets and PIT‑CG's Important: Child Day Care
Credit Worksheet and PIT-CG, New Mexico Caregiver Statement must be submitted with your PIT-1 return.

Column A: Enter the name of the qualified dependent child who received day care during tax year. 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 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.
Even if you paid more than $8, only enter $8.
Column E: Multiply Column C by Column D and enter the result.
Column G: Multiply Column E by Column F (0.40) and enter the result, but no more than $480 per child. If the computed amount is more
than $480, enter $480.
Total Day Care Available: Add the amounts in Column G and enter the total in SECTION V: NEW MEXICO CHILD DAY CARE CREDIT
of your PIT‑RC, amount cannot be more than $1,200. If the total amount of Column G is more than $1,200, enter $1,200.

PIT-RC RC‑11 www.tax.newmexico.gov

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Rev. 09/13/2016
PIT-CG NEW MEXICO CAREGIVER'S STATEMENT
The caregiver must complete this PIT‑CG and give it to the taxpayer to attach to the PIT‑1 Return and Schedule PIT‑RC. Each caregiver who
provides daycare services for which a credit amount is claimed completes a separate PIT‑CG. Failure to attach the required PIT‑CG to the
PIT‑1 will cause the amount claimed for the child daycare credit to be disallowed. Attach the Child Day Care Credit Worksheet to the PIT‑CG.
The caregiver must furnish the information on the number of days care was provided each month and the compensation received for
each child for whom the credit is claimed. The caregiver must answer the three qualification questions; enter their name, address, phone
number, and New Mexico CRS identification number; and sign this PIT‑CG. The name and social security number for each child receiving
daycare services is required on this PIT‑CG. The taxpayer must also sign.
Do not include any charges for childcare for periods of unemployment or for childcare provided either before or after work (plus any necessary
travel time) or for periods the taxpayer is attending school.
Taxpayer's first name and initial (as it appears on Form PIT‑1) Taxpayer's last name Taxpayer's social security number

PART I. QUALIFICATIONS FOR INDIVIDUAL CAREGIVERS
Caregiver's name Caregiver's address Caregiver's New Mexico CRS ID or SSN

1. Were you, as a caregiver, age 18 or over at the time the care was performed? YES NO
2. Did you, as a caregiver, provide daycare service for less than 24 hours daily? YES NO
3. Were you a dependent of the above taxpayer for whom you provided childcare services? YES NO

PART II. STATEMENT OF COMPENSATION RECEIVED BY CAREGIVER
TAX YEAR CHILD 1 Name and SSN CHILD 2 Name and SSN CHILD 3 Name and SSN CHILD 4 Name and SSN
20___
Compensation Compensation Compensation Compensation
Month No. of Amount Received No. of Amount Received No. of Amount Received No. of Amount Received
Days Per Month Days Per Month Days Per Month Days 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 THE CAREGIVER, COMPLETE THIS PART OF THE FORM.
If you made all reasonable attempts to complete this PIT‑CG schedule, and you are still unable to locate the caregiver or to obtain the
required information, complete Parts 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 RC‑12 www.tax.newmexico.gov

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