Last year the company I work for in NM withheld $1647.00 throughout the year. At tax time after filing I ended up paying NM $1772.00, and CO, which I am a resident of, $506.00. Colorado gave me a credit of $1483.00 but NM would not give me any credit. They stated that I was a "resident" as far as they were concerned. But when NM gave rebate checks I didn't get one because I wasn't a "resident." Colorado states NM is engaging in double taxation and pretty much told me not to file in NM. NM states I have to file because the income is generated in the state. Does anyone have any suggestions on what I should do. I really don't want to pay over $2000. In state taxes again.

Thank you

jmwall:

You are required to file a NM return, because you did generate revenue in NM. I would be very cautious of taking advice not to file in a state when you are REQUIRED to file in that state. --The person giving you that advice will not likely be the one NM contacts to assess taxes, penalties, and interest against you. With that said, I am wondering if your 2007 return was filed correctly.

As I read the "INSTRUCTIONS FOR 2007 PIT-B SCHEDULE NEW MEXICO ALLOCATION AND APPORTIONMENT OF INCOME," my understanding is you should file in New Mexico as a non-resident or a part-time resident. I am making the assumption that you do not live in New Mexico at all, you are not registered to vote in NM, and you do not have a NM driver's license.

It appears that if you spend less than 185 days (24 hours per day) in NM, then you are a resident of the state in which you are domiciled (CO).

Is it possible that someone misinterpreted your answers to the residency test? If so, you may want to file an amended NM 2007 return.

An E.A. (Enrolled Agent) or a CPA who are accustomed to working in/with NM Taxation and Revenue could help you with that.


If you need more information, please be sure to let me know.

Thank you very much for the information. I never really intended on not filing but it had crossed my mind. I will seek out a CPA and see if I can get an amended return. I had to do that after they told me I owed them more money. I don't know why they assumed I was a resident, I told them I didn't according to their own information but they did not seem to care... again thank you for the information.