Any taxpayer who files a New Mexico PIT-1 Personal Income Tax Return, including out-of-state residents with income tax responsibility to New Mexico, may claim a deduction for medical care expenses paid during the tax year for medical care of the taxpayer, the
taxpayer's spouse or a dependent. Use the worksheet on page 15 to determine
your deduction amount.
Note: If you or your spouse is 65 years of age or older and you paid unreimbursed and uncompensated medical care expenses over $28,000 during the current tax year, you may claim a tax credit of $2,800. The medical care expenses may be made for the care of any combination of yourself, your spouse or dependents. See the instructions for line 13, Schedule PIT-ADJ and line 23, Schedule PIT-1-RC.
Caution: You may claim only unreimbursed and uncompensated medical expenses NOT already itemized on the federal Form 1040 return for the same year. If you have subtracted a medical care expense from your income in determining federal adjusted gross income, you cannot subtract it a second time here. Reimbursed and compensated insurance premiums like those paid with pre-tax dollars under cafeteria and similar benefit plans are also ineligible. Some of the expenses you may include are:
- Medical expenses otherwise allowed as itemized deductions for federal purposes but excluded because they are below a floor amount and not deducted elsewhere;
- Amounts paid as premiums under Part B of Title XVIII of the Social Security Act (Medicare)
- Amounts paid for a qualified long-term care insurance contract defined in Section 7702B(b) of the Internal Revenue Code, and
- Unreimbursed insurance premiums and co-payments not deducted for federal purposes.
For further definitions regarding purposes of this deduction, please see our knowledge base.
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