New Mexico Child Day Care Credit
The child day care credit may not exceed $1,200 or, for a married taxpayer filing a separate return, $600.
Married individuals maintaining a household for one or more qualifying dependents, but filing separate returns for a tax year, may each claim only half the credit allowed on a joint return.
To qualify for the credit, all of the following must be true:
• You have a modified gross income of $30,160 or less.
• You were a resident of New Mexico during any part of the tax year.
• You provided over half the cost of maintaining a household for one or more qualifying dependents for the part of the tax year for which you are claiming the credit (either separately or jointly with a spouse).
• You were gainfully employed for the part of the tax year for which you are claiming the credit.
• You were not a recipient of public assistance under TANF, the New Mexico Works Act, or a similar program during the part of the tax year for which you are claiming the credit.
• You have not been reimbursed or compensated for the amount of child day care expense for which you are claiming the credit.
Reimbursed or compensated child day care expenses, like those paid with pre-tax dollars under cafeteria and similar benefit plans, are also ineligible.