3.3.4.9

APPORTIONMENT OF SECTION 7-2-5.2 NMSA 1978 EXEMPTION

1. A. Any individual who is blind or sixty-five years of age or older, who has income both within and without this state and who claims the exemption provided by Section 7-2-5.2 NMSA 1978 shall apportion the exemption amount claimed in accordance with this section (3.3.4.9 NMAC).

2. B. For taxable years beginning in 1987, 1988 or 1989, apportionment shall be accomplished by reducing the individual's deduction for non-New Mexico income by an amount equal to the product of the maximum allowable amount for the individual's filing status and adjusted gross income multiplied by the percentage of non-New Mexico income computed on the individual's New Mexico income tax return or any schedules or attachments thereto.

   (1) Example 1: X is a single individual over sixty-five years of age whose total adjusted gross income is $19,000. Thirty percent of X's adjusted gross income is non-New Mexico income. X must reduce X's non-New Mexico income by $2,100, computed as follows:

   Maximum allowable amount for a single

   individual with $19,000 AGI $ 7,000

   30% x $7,000 x .30

   Adjustment to non-New Mexico Income $ 2,100

   (2) Example 2: A and B are married and file a joint return. A is over 65. B is 62 and blind. 10% of their $25,000 adjusted gross income is from outside New Mexico. A & B must reduce their non-New Mexico income by an amount of 1,600 computed as follows:

   Maximum allowable amount per individual for a

   married couple filing jointly with $25,000 AGI $ 8,000

   Multiply by 2 since both individuals qualify x 2

   $16,000

   10% x $16,000 x .10

   Adjustment to non-New Mexico Income $ 1,600

3. C. For taxable years beginning on or after January 1, 1990, apportionment is accomplished in the process of determining tax due and the amount of the credit available pursuant to Subsection C of Section 7-2-11 NMSA 1978. Accordingly, no separate process is necessary to apportion the exemption provided by Section 7-2-5.2 NMSA 1978.

4. D. This version of this section (3.3.4.9 NMAC) is retroactively applicable to taxable years beginning on or after January 1, 1990.

   [3/3/89, 12/29/89, 3/16/92, 1/15/97; 3.3.4.9 NMAC - Rn & A, 3 NMAC 3.4.9, 12/14/00]