Refunds

When we receive a refund of tax we’ve already paid, it’s a lot like discovering unexpected money in the bank.

Everyone likes to see either a windowed envelope containing the state’s check arrive in the mail — or perhaps an electronic entry in a bank statement that the refund has already been deposited safely.

To receive a timely refund for the appropriate amount and to avoid owing additional tax, penalty and interest, you should thoroughly review your return before submitting it to the Taxation and Revenue Department.

Errors on tax returns may result in refunds of less than is due to you, delayed refunds, or additional tax, plus penalty and interest. The Taxation and Revenue Department will send you a Return Adjustment Notice, if any corrections were made to your return. The notice will let you know if any additional information is needed.

Below are some tips to ensure a timely refund:

• Electronic Filing – filing electronically means that you will have more accurate returns and receive your refund faster. You can file your personal income tax return for free using the Taxpayer Access Point (TAP).
• File early – as the April due date approaches, the Taxation and Revenue Department receives a large volume of tax returns and return processing times increase.
• Check for mistakes – Verify the accuracy of the information on your return, including using the correct Social Security Number(s) or other tax identification numbers. Verify the tax tables or rates and mathematical calculations. Common errors include:

• failing to include all income;
• selecting the incorrect filing status;
• failure to include dependent information;
• missing some allowable credits or deductions;
• failing to attach W-2s;
• mailing New Mexico returns and payments to the Internal Revenue Service;
• using incorrect forms or schedules, and
• missing signatures.

• Make sure we have your correct mailing address – if you have moved since your last filing, update your mailing address with the Taxation and Revenue Department on you return or if you have already filed your return update your mailing address using the Taxpayer Access Point (TAP).
• Be informed – read the instructions for all personal income tax forms and schedules that you will be completing.
• Request Refund Express OR direct deposit – refunds that are direct deposited avoid delays that may occur in the mailing of a check. For a refund to be direct deposited you will need to specify the bank routing number, account number and the type of account on your return. You must also indicate whether the refund will go to or through an account outside the territorial jurisdiction of the United States*. If it does, or if you do not mark the boxes, direct deposit is not an option. Refund Express or direct deposit is available for deposits to your account only. You may not request the funds to be deposited into the account of another payee.

*New federal banking rules require that you answer this question. A refund sent to an account at a financial institution outside the territorial jurisdiction of the United States, even if the payment passes through a U.S. financial institution, may not be made using this refund option. You may select a different bank account, or you may leave the Refund Express portion of your return blank and a paper check will be mailed to you.

We mail a paper check if the bank does not accept the Refund Express or direct deposit information.

Reasons to get your refund by direct deposit:

• Avoid delays that may occur in printing and mailing checks;
• Payment is more secure because there is no check to be lost or stolen;
• It is more convenient. There is no trip to the bank to make a deposit;
• It saves tax dollars because a refund by direct deposit costs less than a check; and
• It is environmentally friendly. Refunds deposited directly into a bank account reduce the need for paper.

A financial institution is located within the territorial jurisdiction of the United States if it is:

• within the United States;
• on a United States Military Base, or
• in American Samoa, Guam, the Northern Mariana Islands, Puerto Rico or the U.S. Virgin Islands.

FREQUENTLY ASKED QUESTIONS ABOUT
PERSONAL INCOME TAX REFUNDS

Below are some of the frequently asked questions, and responses from the New Mexico Taxation and Revenue Department in regard to personal income tax refunds.

You can locate specific instructions, or you can choose the entire personal income tax packet by going to our website here and opening the following folders Income Taxes/Income Taxes (Current Tax Year Forms)/Personal Income Tax (PIT)/Personal Income Tax Return Forms

I mailed my paper personal income tax return the same day as my neighbor. The neighbor has already received a refund. Where is mine?

Each paper Form PIT-1, New Mexico Personal Income Tax Return is sorted and processed individually. The Taxation and Revenue Department receives thousands of paper returns daily. Even if they were mailed on the same day, the processing times may vary. Please allow up to 12 weeks for processing. Do not resubmit your return or submit a refund request as a duplicate request will slow down the processing of your original return.

Before checking on the status of your refund, please allow up to 12 weeks for processing. If the Taxation and Revenue Department has selected your return for an identity and income review, this may increase the refund processing time.

In the future, please consider filing electronically as the processing time for electronic returns is faster as it does not require imaging and keying of the return. You can file your New Mexico Form PIT-1, New Mexico Personal Income Tax Return for free using the Taxation and Revenue Department’s online service the Taxpayer Access Point (TAP).

What if I change addresses after I file my return and before I receive my refund?

The best way to avoid a delay in receiving your refund is to use the “Refund Express” on the paper personal income tax return to get a direct deposit of your refund or the direct deposit option on the Taxpayer Access Point (TAP) or with a tax preparer software. The Taxation and Revenue Department will deposit your refund directly into the bank account specified.

If your bank does not accept your direct deposit or you choose not to use that option, the Taxation and Revenue Department will mail a paper check to the latest address received. Normally, the Post Office does not forward refund checks. Notify the Taxation and Revenue Department of your new address in writing using Form RPD-41260, Personal Income Tax Change of Address Form, as soon as possible. Your account will be noted of the address change and the refund redirected to the correct address when processed, if the check was mailed out and returned to the Taxation and Revenue Department, the check will be re-sent to your updated address.

Where’s my refund?

To check the status of your refund for the current taxable year visit the Taxation and Revenue Department’s online service the Taxpayer Access Point (TAP). Once you are on the TAP website go to the “Personal Income” tile and select the “Where’s My Refund?” link. You will need your SSN or ITIN and the refund amount from your submitted Form PIT-1, New Mexico Personal Income Tax Return.

You will get one of three responses:

• • “Your refund for XX/XX/XXXX is being processed. Please allow up to 12 weeks for processing.” This means that your return has been accepted but is currently being processed.
  • “Information on your refund could not be found at this time.” This means that currently there is not a return in our system of record for you. If you filed a paper return, upon being received, that return has to be imaged and keyed into our system of record. Please allow 12 weeks for processing before checking on your refund again. The Taxation and Revenue Department encourages electronically filing whenever possible as it reduces processing time. It is possible that if you electronically filed your return, your return was not accepted or it was rejected, please check with your tax preparer. If this has happened, you will need to resubmit your return.
  • “Your refund for XX/XX/XXXX in the amount of $XXX has been issued on XX/XX/XXXX.” Refunds requested by direct deposit can take up to 7 business days from the date it has been issued to appear in the bank account specified. Refunds issued by paper check can take 2 to 3 weeks for printing and mailing of the refund from the date it has been issued.

  You may also get a response notifying you that your refund has been intercepted for collections either by the Taxation and Revenue Department or by a claimant agency submitting a request to the Taxation and Revenue Department through the authority of the Tax Refund Intercept Program Act. If this is what happened to your refund or part of your refund, you will receive a letter from the Taxation and Revenue Department informing you what the offset was for. If the offset was for a tax liability with the Taxation and Revenue Department, the letter will inform you of this reason and you can work with our staff. The TAP “Where is my Refund?” refund status notice will also inform you of this.

  If your refund was used to offset debt by another claimant agency the letter will provide you with information for that agency. The TAP refund status notice will also inform you of the transferred refund and provide you with contact information for the claimant agency. You will need to contact that agency for resolution.

  You are also able to call 1-866-285-2996 and choose the self-serve option to get refund information.

  What should I do, I lost my refund check or I never received by refund?

  If your refund is lost, or if you have not received it after 30 days from the issuance date, please contact the New Mexico Taxation and Revenue Department at trd.taxreturnhelp@tax.nm.gov . The Department will need to verify your current mailing address and research the status of your refund. They will review your account to see if your check has been returned to the Department or if it has been cashed/redeemed.

  If lost, the Department may issue an Affidavit for Duplicate State Warrant. The affidavit will need to be completed, notarized, and submitted via mail back to the Department. Once a completed Affidavit for Duplicate State Warrant has been submitted it can take 8-12 weeks to process, which will require restoring the credit to the account and generating a paper check.

  If your refund check has not been cashed/redeemed after 13 months, the money is turned over to Unclaimed Property. To receive that refund, you will need to go through the Unclaimed Property process. For more information go to our website here: https://www.tax.newmexico.gov/individuals/what-is-unclaimed-property/

  Notices Regarding Your Refund

  There are 3 types of notices the Department may send to you regarding a refund.

  The first is a Tax Return Adjustment Notice when a return contains an error and a correction is made. This notice advises of adjustments if there are calculation errors or an incorrect figure such as tax rate. If the adjustment results in an overpayment or an underpayment, either an overpayment notice or an assessment notice follows.

  We send a Refund Denial notice when a refund is denied. The notice gives you the reason and includes information on any amount of tax that may be due.

  A Notice of Overpayment advises that we have found an overpayment with your tax return or assessment. Complete form RPD-41071, Application for Tax Refund to request a refund. If it appears that the notice is not correct and an overpayment has not been made, or the amount of the overpayment in the notice is not correct, you should follow the instructions on the notice to make the correction.

  Can I check on the status of my friend’s, parent’s, dependent’s or spouse’s refund?

  A signed authorization form ACD-31102, Tax Information Authorization Tax Disclosure making you the authorized representative is required to release any information about someone else’s refund. Only in the case of a married filing jointly return may we release information on a refund to either spouse.

  My refund is different than the amount that was entered on my personal income tax return?

  There may be a few different reasons why your refund amount is different from what was claimed on you submitted Form PIT-1, New Mexico Personal Income Tax Return.

  One reason would be an adjustment made by the Taxation and Revenue Department. If this is the case a “Return Adjustment Notice” will be mailed to you. An adjustment may be made due to a math error, a missing additional schedule such as the Form PIT-ADJ, New Mexico Schedule of Additions, Deductions, and Exemptions when that line on the PIT-1 was filled out, or a credit was claimed but it is missing the necessary supporting document. The “Return Adjustment Notice” will inform you of what you need to submit to the Taxation and Revenue Department and the address to submit that information.

  The second reason that your refund may not match what was claimed on the return is due to a claimant agency submitting a request to the Taxation and Revenue Department through the authority of the Tax Refund Intercept Program Act. If this is what happened to your refund or part of your refund, you will receive a letter from the Taxation and Revenue Department informing you what the offset was for. If the offset was for a tax liability with the Taxation and Revenue Department, you can work with our staff.

  If your refund was used to offset debt by another claimant agency the letter will provide you with information for that agency. You will need to contact that agency for resolution.

  How do I donate money from my refund?

  If you are due a refund when completing your Form PIT-1, New Mexico Personal Income Tax Return, you have the opportunity to donate all or part to a special fund using the Form PIT- D, Voluntary Contributions Schedule. You can choose from many worthwhile funds, which are listed on the schedule and described in the PIT-D instructions. The Taxation and Revenue Department deducts your contribution from your refund and then transfers the amount you specify to the fund or funds you have chosen. On a joint return, both individuals must agree to all contributions. Changes are not allowed, so taxpayers should carefully consider their contributions.

  What is form 1099-G and why did I receive it?

  Form 1099-G is an income statement issued by the Taxation and Revenue Department which reports any refund, credit, carryforward, or offset issued to you for the tax year. This document is not a bill but a form the Internal Revenue Service (IRS) requires the Taxation and Revenue Department to complete.

  You received this statement because it may be taxable to you if you deducted the state or local income tax paid as an itemized deduction on your federal income tax return. If you received interest on this amount, report it as interest income on your tax return.

  Why did I receive a 1099-INT from the New Mexico Taxation and Revenue Department when I never received a check for interest?

  Interest paid on your state income tax refund was combined on your refund check. You will be able to tell how much interest you received by looking at your original refund claim and comparing that to the amount of a refund received from the Taxation and Revenue Department either by check or direct deposit.

  Interest is only sent out under certain circumstances covered by Section 7-1-68 NMSA 1978.

  The Internal Revenue Service (IRS) requires a 1099-INT form to be sent to a taxpayer that received interest with their refund during a year.