New Mexico $500 Tax Rebate: Who Is Eligible?

The state of New Mexico authorized one-time tax rebates to provide economic relief to its residents. This initiative was a response to the financial pressures experienced by households. The state’s strong financial standing enabled the distribution of these funds. The rebates were structured to assist a broad range of residents, with payments automatically issued to most eligible individuals without the need for an application.

Eligibility for the Rebate

To have qualified for the rebate, an individual must have been a resident of New Mexico and filed a 2021 Personal Income Tax (PIT) return. A central condition for eligibility was that the individual could not have been claimed as a dependent on another person’s tax return. The rebate amounts were directly tied to the filing status on the 2021 tax return.

The specific rebate amounts were set at $500 for single filers and married individuals filing separately. A larger rebate of $1,000 was designated for married taxpayers filing joint returns, heads of household, and surviving spouses. These amounts were established to provide proportional support based on household size and tax filing status.

Receiving Your Rebate Payment

For the majority of eligible residents, receiving the rebate was an automatic process that required no further action. The New Mexico Taxation and Revenue Department (TRD) began issuing the payments in mid-June 2023, utilizing the information from filed 2021 state tax returns to distribute the funds efficiently. The distribution was handled in two primary ways, depending on how a taxpayer received their 2021 tax refund.

Individuals who had received their 2021 tax refund via direct deposit had the rebate sent to the same bank account. This method was the fastest way to receive the funds, with electronic transfers being the first wave of payments sent out. All other eligible taxpayers, including those who did not use direct deposit or whose banking information had changed, were sent a paper check by mail. These checks were mailed to the most recent address on file with the TRD, and mailings continued over the following weeks.

Guidance for Non-Filers and Late Filers

Individuals who did not file a 2021 New Mexico PIT return by the standard deadline were still given an opportunity to receive the rebate. The state established a final deadline of May 31, 2024, for residents to file their 2021 return and qualify for the payment. Those who filed before this deadline had their rebate processed after the return was received.

For residents who were not required to file a tax return due to their income level, a separate path was created to access relief funds as part of the 2023 economic relief package. The Human Services Department managed a fund for these non-filers, and payments were distributed on a first-come, first-served basis. The application process for these payments is no longer open.