RPD-41348: RPD-41348 Guidance for NM Resident Military Spouses Claiming Withholding Tax Exemption from Another State (2025)
New Mexico · New Mexico TRD · Used for tax years 2025
RPD-41348 Guidance explains how qualifying New Mexico resident military spouses may claim relief from another state’s income tax withholding requirements. It covers eligibility, domicile, reporting requirements, and documents employers or payors may request to verify eligibility.
Who files this form
This document provides guidance for military spouses domiciled in New Mexico who move to another state solely to be with a servicemember stationed there under military orders.
A qualifying spouse earning income from services performed in another state may claim exemption from that state's withholding requirements. The spouse must tell the employer or payor that they qualify and that withholding should begin for New Mexico instead.
The guidance requires the qualifying New Mexico resident spouse to file a New Mexico income tax return and pay New Mexico tax. The spouse's non-military income must be sourced to New Mexico on Schedule PIT-B. To obtain a refund of tax withheld by another state, an income tax return must be filed in that state.
Check with the state where you currently reside to confirm its eligibility requirements.
What you'll need
Your employer or payor may require a statement and documents showing that you qualify. Requirements may differ by state. The guidance lists these examples of eligibility documents:
- Employee's military ID card
- Marriage license
- Servicemember's current Leave and Earnings Statement (LES), showing Variable Housing Allowance (VHA) ZIP information in the Pay Data line
- Servicemember's recent W-2
- Voter registration cards for the servicemember and spouse
- Driver's licenses for both spouses
- Children's birth records
- Professional licenses
- Proof of employment
- New Mexico state tuition documentation
Keep copies of all paperwork you submit to your employer or payor.
Common mistakes
- Expecting another state's withholding to transfer to New Mexico. It cannot be transferred directly. Apply for a refund from the state that received the tax and pay any New Mexico personal income tax due.
- Not paying New Mexico tax during the year. Ensure the tax due is paid through withholding or estimated tax to avoid an underpayment penalty.
- Assuming eligibility continues after circumstances change. Relief ends if the servicemember leaves the service, the couple divorces, or the spouse takes an action that clearly establishes domicile in the other state. Examples include accepting in-state tuition or claiming a tax credit available only to people domiciled there.
- Relying on one factor to establish domicile. The guidance says no single factor determines domicile. Carefully evaluate all factors before claiming or changing it.
- Skipping the other state's requirements. Check with that state's taxation department to make sure its requirements are met.
Questions people ask
Does an overseas assignment end the spouse's relief?
No. The guidance says the spouse still qualifies if the servicemember is stationed overseas. Deployment location does not change the servicemember's domicile.
Which state can a military spouse choose as their domicile?
The guidance says a spouse can choose either the state where they have established domicile or the state where the servicemember has established domicile. The spouse does not have to live in a state before claiming it as domicile.
Can I claim a New Mexico credit for tax paid to the other state?
The guidance allows a credit only for income not sourced to New Mexico. It requires the qualifying spouse's non-military income to be sourced to New Mexico on Schedule PIT-B.
Where can I get help?
New Mexico resident military spouses can contact the Personal Income Tax unit at TRD.TaxReturnHelp@state.nm.us or (505) 827-0827. Employers and payors can contact the Combined Reporting System unit at CRS.TaxReturnHelp@state.nm.us or (505) 827-0832.