Moved From New Mexico to Texas, when inputting w2's from texas, my NM refund gets adjusted

sophiaspizz
sophiaspizz Member Posts: 1 Newcomer

So far on FREE TAX USA I filed a part year resident for my time in New Mexico (Jan-August) How come when I upload my W2's from texas, my New Mexico refund starts to change? I am confused if I am not filing this right

Comments

  • PhillipB
    PhillipB FreeTaxUSA Team Posts: 90

    Hello,

    When you have a part-year tax return, you will need to allocate income between the two states. For New Mexico, follow these steps:

    1. Click State TAB > Click Income Allocation
    2. On each income line, enter amount of your federal income that was earned while you were still living in NM, and that you earned working in NM while living in TX.

    That should correct any incorrect changes in your NM refund because of income that you earned in TX.