How Long Does a New Mexico State Tax Refund Take?

A tax refund from the New Mexico Taxation and Revenue Department (TRD) represents an overpayment of your state income tax liability. The department diligently processes returns to issue refunds, which can vary in speed based on several factors.

Typical Processing Timelines

The New Mexico Taxation and Revenue Department typically processes electronically filed tax returns claiming a refund within 6 to 8 weeks. Some taxpayers who e-file and choose direct deposit may see their refunds within 7 to 10 business days after the TRD accepts their return. For returns submitted on paper, the processing period is generally longer, taking 8 to 12 weeks. Paper returns filed earlier in the tax season might be processed closer to the 8-week mark, while those filed later could take up to 12 weeks or more.

Direct deposits can appear in a bank account within approximately 7 business days from the issuance date. If a paper check is selected, it can take an additional 2 to 3 weeks for printing and mailing after the refund has been issued. These timelines are estimates, and actual processing times can fluctuate based on the volume of returns and other departmental operations.

Factors Influencing Refund Delays

Errors or omissions on the tax return itself are a frequent reason for delays. These can include incorrect Social Security numbers, mathematical mistakes, choosing the wrong filing status, or failing to include required information such as dependents or certain credits and deductions. Such inaccuracies often necessitate a manual review by the department, extending the processing period.

Incomplete submissions, such as missing required forms or schedules, also contribute to delays. The New Mexico Taxation and Revenue Department has significantly increased its efforts to combat identity theft and refund fraud, which can lead to extended processing times. If a return is flagged for potential fraud, the department may request additional documentation or identity verification from the taxpayer. Additionally, if the department makes an adjustment to the refund amount, perhaps due to a debt offset through the Tax Refund Intercept Program, a notice explaining the change will be mailed.

How to Check Your Refund Status

Taxpayers can check the status of their New Mexico state tax refund through the New Mexico Taxation and Revenue Department’s online service, the Taxpayer Access Point (TAP). To access this tool, navigate to the “Personal Income” section on the TAP website and select the “Where’s My Refund?” link. Users will need to provide their Social Security Number (or Individual Taxpayer Identification Number) and the exact refund amount from their submitted return to retrieve the status.

The online tool provides updates on the refund’s progress, indicating whether it is still being processed or if it has been issued. It is advisable to wait at least 6 to 8 weeks after e-filing or 8 to 12 weeks after mailing a paper return before attempting to check the status or contacting the department. While the online tool is the primary method, taxpayers can also inquire by calling the department’s refund inquiry line or by sending an email for assistance.