529 contributions in New Mexico
Varies
Are 529 Contributions Tax Deductible in New Mexico?
Short answer: Yes on your New Mexico return: Unlimited (full contribution). Only contributions to the state's own plan count. NM plans only; deductions recaptured on nonqualified withdrawals or rollovers to out-of-state plans.
There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
529 contributions in New Mexico
Varies
Individuals / Personal Taxes
Yes on your New Mexico return: Unlimited (full contribution). Only contributions to the state's own plan count. NM plans only; deductions recaptured on nonqualified withdrawals or rollovers to out-of-state plans.
Business justification
Yes on your New Mexico return: Unlimited (full contribution). Only contributions to the state's own plan count. NM plans only; deductions recaptured on nonqualified withdrawals or rollovers to out-of-state plans. There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Category
- Personal Tax Deductions