New Mexico Earned Income Tax Credit Calculator

The Working Families Tax Credit reaches ITIN filers

New Mexico does not call its credit an EITC. Its Working Families Tax Credit is tied to the federal earned income tax credit and currently matches 25% of it, up from the lower percentages the state used in earlier years, so confirming the rate for your filing year is worthwhile before you rely on an old worksheet.

The feature that sets New Mexico apart is its reach. Unlike the federal EITC, which requires a Social Security number, the state has extended the Working Families Tax Credit to workers who file with an Individual Taxpayer Identification Number, and to many younger workers without children. That means some households shut out of the federal credit can still claim the New Mexico one, and for them the calculator's federal figure will read zero while a state benefit still exists. Treat the federal number here as a starting point, not a gate.

For filers who do qualify federally, the mechanics are simple: the tool computes the federal EITC from earned income, filing status, and qualifying children, then applies 25%. The credit is refundable, so it is paid even when it exceeds your New Mexico tax. A single filer with 2 children earning $25,000 will see a federal EITC in the thousands and a New Mexico credit of one quarter of that. Because the state percentage has changed more than once, verify the current-year rate against the New Mexico Taxation and Revenue Department before filing.