New Mexico Income Tax Exclusion for VA Dependency and Indem…

New Mexico Income Tax Exclusion for VA Dependency and Indemnity Compensation

New Mexico Taxation and Revenue Department

Full exclusion from taxable income

Dependency and Indemnity Compensation, the monthly VA payment to survivors of a service member who died in the line of duty or a veteran who died from a service-connected injury or disease, is tax free and is not taxed by New Mexico.

Check eligibility

How to apply

There is nothing to apply for. Leave your Dependency and Indemnity Compensation payments out of the income you report on your New Mexico personal income tax return.

What you'll need

Your VA award letter showing the Dependency and Indemnity Compensation payments.

Eligibility

You are a New Mexico resident filing a New Mexico personal income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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