New Mexico residents who are eligible can expect to receive rebate checks from tax return of up to $1,000 in their bank accounts starting in mid-June. The state plans to return over $673 million to taxpayers due to a surplus from high oil prices in the fiscal year. Governor Michelle Lujan Grisham emphasized the importance of sharing the state’s financial success with New Mexico’s families, considering the high cost of basic necessities nationwide.
Tax rebates are not uncommon, and several states, including Alabama and Minnesota, have approved similar stimulus checks for eligible residents in 2023. Last year, more than twenty states provided rebates and inflation relief payments to qualified residents. Each state determines its own rebate amounts and eligibility requirements.
What does the collection of tax refunds depend on?
For the 2023 rebate checks in New Mexico, the payment amount depends on the filing status for the 2021 tax year. Most residents will receive the payment automatically without needing to apply. If the filing status was head of household, married filing jointly, or qualifying widow(er), the payment will be $1,000. Single filers or those married filing separately will receive $500. If the filing status was married filing jointly, the rebate payment will go to the primary taxpayer listed on the 2021 New Mexico state tax return.
To qualify for the New Mexico rebate, taxpayers need to file a 2021 New Mexico personal income tax return by May 31, 2024. Those who chose direct deposit for their 2021 state tax refund will receive the stimulus payment the same way. Others eligible for the rebate will receive it through mail. Dependents listed on a 2021 tax return do not qualify for the New Mexico income tax rebate.
Individuals who weren’t required to file a 2021 tax return may still be eligible for an economic relief payment if they are not eligible for the income tax rebate due to not filing a New Mexico income tax return in 2021, such as those receiving non-taxable income like Social Security. However, they will need to apply for the payment once applications open, with limited funds available. These relief payments are expected to be sent in July 2023.
New Mexico residents who have filed their 2021 tax return can now monitor their bank accounts for the arrival of the rebate payment
Starting in mid-June, New Mexico residents who filed a 2021 tax return can check their bank accounts for the rebate payment. If their direct deposit information has changed or they didn’t receive a 2021 tax refund via direct deposit, they can expect a check in the mail by late June. If any information has changed since filing the 2021 return, it could affect how the rebate payment is received.
If banking information has changed, a paper check will be issued, even if direct deposit information was updated on the 2022 New Mexico tax return. Updating direct deposit information for the 2023 rebate checks is not an option in New Mexico. Address changes since filing the 2021 tax return can be updated with the New Mexico Taxation & Revenue Department to ensure the rebate check is delivered correctly.
If eligible residents have not received their 2022 New Mexico rebate check, they can reach out to the state taxation and revenue department for assistance.