LAS CRUCES, New Mexico (KTSM) – With the tax season underway, Las Cruces residents can expect to see changes when filing their taxes.
This year many New Mexico families will benefit from two major changes signed into law by Governor Michelle Lujan Grisham.
According to the New Mexico Department of taxation and revenue, an increase in the states’ working families tax credit and a new deduction for dependence has been designed to offset the negative effect of 2017 federal tax cuts and jobs act.
“Working families credit for New Mexico has changed there is an increase in it and it’s based off of your earned income credit if you get an earned income credit from the IRS from your federal turn then you will get a working family credit and that used to be 10% and that’s about a 17% now and it’s based off of your earned income credit,” Martha Fajardo, Tax professional at Tax Busters told KTSM reporter Celina Quintana.
Meaning those who do receive working family credit will see an increase of 7% in their tax returns from what they’ve previously seen in years before meaning more money in your pocket.
As for the second change, the deduction for dependents, you can now take out a $4,000 deduction from net income for all but one dependent. This change was intended to offset the elimination of the personal exemption from federal income taxes.
The public is encouraged to ask any questions they may have about doing taxes on their own to seek help from professionals saying there’s a lot of things you can be missing out on when you’re not sure about the new changes.
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