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New Mexico tax tidbit: age pays off

New Mexico flag Willard Scott would love New Mexico. The state allows an added exemption for taxpayers who are 100 or older. 

That's right. Age does have its tax advantages in the Land of Enchantment.

The earnings of  a person 100 years old or more is exempt from the state's income tax.

You must have celebrated that momentous birthday by the end of the tax year for which you claim the exemption. 

And you'll need to fill out Form PIT-ADJ to make sure the department of Taxation and Revenue knows you're in the tax clear.

You also must be a self-sufficient centenarian. If you are the dependent of another New Mexico taxpayer, then your income isn't exempt.

Unmarried centenarians do not need to file a return unless they want to claim rebates and credits available for low-income filers.  But since New Mexico is a community property state, the rules are different for married 100-year-olds.

Married centenarians filing jointly or separately may exempt half of all community income and all of the centenarian's separate income. If you report an exemption for more, or less, than 50 percent of total joint income, you need to attach a statement showing a correct division of community and separate income and payments.

The hubby and I are proud native Texans and there's no state income tax here, but the year we turn 100 we're moving to our neighbor to the west just so we can take advantage of this law!

Tax trip around the United States: This post is part of our series highlighting tax information from the 50 U.S. states and Washington, D.C. You can read other state tax blurbs at our Complete menu of tasty state tax tidbits.

The State Tax Departments page provides links to official state and District of Columbia revenue Web sites so that you can find out more about your home's tax laws and filing requirements.

As we work through the 2010 tax season, a different state will be featured each day as noted in Don't forget your state taxes! Check back to see what tax tidbit we share about your home.

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