Copyright © 2021 Albuquerque Journal
Why do tomorrow what you can put off until May?
The New Mexico Taxation and Revenue Department announced Thursday it will extend the deadline for filing and paying 2020 state personal income taxes until May 17, matching the federal extension announced by the Internal Revenue Service a day earlier.
More than 359,000 returns claiming refunds have already been processed by the state, and more than $199 million in refunds have already been issued, the department wrote in the release.
“As we have throughout the pandemic, we will continue to look for reasonable ways to make it easier for New Mexicans to meet their tax obligations,” Taxation and Revenue Secretary Stephanie Schardin Clarke wrote in the release. “We also are working as hard as we can to get refunds into taxpayers’ hands as quickly as possible.”
The IRS and the U.S. Treasury Department announced Wednesday that the individual tax filing deadline would be moved from April 15 to May 17. Individual taxpayers, including those who pay self-employment taxes, can also postpone federal income tax payments to May 17 without penalties and interest, according to an IRS release. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17.
The state Taxation and Revenue Department is also issuing guidance for taxpayers on an exclusion of up to $10,200 in unemployment compensation included in a provision of the American Rescue Plan Act signed into law by President Joe Biden on March 11. The exclusion applies to taxpayers with an adjusted gross income under $150,000, the release said. New Mexicans who benefit from the provision will also see their state tax reduced.
Taxpayers who have already filed their 2020 income tax returns may need to file amended state and federal returns to take advantage of the unemployment compensation exclusion. The department plans to release more information about the change soon, the release said.
