Child tax credit in New Mexico
Varies
Does New Mexico Have a Child Tax Credit?
Short answer: Yes: Child Income Tax Credit per qualifying child (2025 amounts): $637 if AGI is $25,000 or less; $424 up to $50,000; $212 up to $75,000; $106 up to $100,000; $79 up to $200,000; $53 up to $350,000; $26 above $350,000. Refundable. Amounts are inflation-indexed annually.
Child care: Refundable Child Day Care Credit: 40% of caregiver compensation, up to $480 per dependent under 15 and $1,200 total. Only for modified gross income of $30,160 or less (2025). The 2026 indexed child credit amounts were not yet published (they will be at least the 2025 amounts). The credit is scheduled to expire after 2031. New Mexico also allows a $4,000 deduction for each dependent other than one. The federal child tax credit is $2,200 per child under 17 for 2026 and is claimed on Form 1040 regardless of state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Child tax credit in New Mexico
Varies
Individuals / Personal Taxes
Yes: Child Income Tax Credit per qualifying child (2025 amounts): $637 if AGI is $25,000 or less; $424 up to $50,000; $212 up to $75,000; $106 up to $100,000; $79 up to $200,000; $53 up to $350,000; $26 above $350,000. Refundable. Amounts are inflation-indexed annually.
Business justification
Yes: Child Income Tax Credit per qualifying child (2025 amounts): $637 if AGI is $25,000 or less; $424 up to $50,000; $212 up to $75,000; $106 up to $100,000; $79 up to $200,000; $53 up to $350,000; $26 above $350,000. Refundable. Amounts are inflation-indexed annually. Child care: Refundable Child Day Care Credit: 40% of caregiver compensation, up to $480 per dependent under 15 and $1,200 total. Only for modified gross income of $30,160 or less (2025). The 2026 indexed child credit amounts were not yet published (they will be at least the 2025 amounts). The credit is scheduled to expire after 2031. New Mexico also allows a $4,000 deduction for each dependent other than one. The federal child tax credit is $2,200 per child under 17 for 2026 and is claimed on Form 1040 regardless of state.
Category
- Personal Tax Deductions