Social Security Benefits in New Mexico are not taxable, yet TurboTax Desktop is not adding the adjustment as a deduction

Forum|Forum|1 year ago
February 20, 2025
2 replies
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I am using TurboTax desktop and the software is not making the deduction for social security benefits to my state return.

VolvoGirl

Employee

Do you have any taxable Social Security on federal 1040 line 6b? If it’s not taxable it’s not included in your AGI and you don’t need to remove it from a state return.

Reta DAuthor

The correct amounts are showing in 6a and 6b on the federal return, but not reflected as a deduction on the state return.

Reta DAuthor

There is no adjustment to
Federal Adjusted Gross Income on the state return.

goz48

We are having the same problem. We are using TurboTax and the software is not making the deduction for social security benefits to my state return. The correct amounts are showing in 6a and 6b on the federal return, but not reflected as a deduction on the state return. There is no adjustment to
Federal Adjusted Gross Income on the New Mexico state return with the PIT-ADJ form as was done the last two years with TurboTax. So the state return shows we owe money instead of getting a refund. Does anyone know the reason for this? Thank you.

BillM223

Naturally, when I ran my quick test, taxable SS benefits appeared on PIT-ADJ on line 25. So now let's try to figure out what the difference is.

1. Are both of you filing NM resident returns?

2. Are you expecting to see line 6b on the PIT-ADJ? (line 6a should not appear on your NM return)?

3. Are you using the CD/download TurboTax or the Online TurboTax?

4. Is your AGI over $100k?

5 Please look at the instructions for line 25 on page ADJ-7 and see if this affects you

@Reta D

@goz48

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goz48

Thanks for the response from Intuit which helped me to understand the problem. The link to the instructions for the NM PIT-ADJ line 25 provides the answer. My wife and I filed jointly which means that if our AGI exceeds $150,000 then we do NOT qualify for a state exemption for our social security income. Our AGI was a little over the $150,000 limit so the exemption is lost for us. It appears that if you are $1.00 under $150,000 AGI, you get the exemption for NM. If you are $1.00 over $150,000, you lose that exemption.

We will be more careful next year!

Thanks again to Intuit for you help.