RPD-41390: RPD-41390 Foster Youth Employment Tax Credit Claim Form (2024)
New Mexico · New Mexico TRD · Used for tax years 2024
Form RPD-41390 is used to claim an approved New Mexico foster youth employment tax credit against personal or corporate income tax. It reports the credit available, amounts previously claimed, and the amount applied to the attached tax return.
Who files this form
Use Form RPD-41390 if you have an approved New Mexico foster youth employment tax credit and want to claim it on your tax return. The form must accompany the return to which you apply the credit.
A taxpayer who employs a qualified foster youth in New Mexico for at least 20 hours per week may qualify for the credit. Before claiming it, submit Form RPD-41389, Application for Foster Youth Employment Tax Credit, and obtain approval from the Taxation and Revenue Department (TRD). See Form RPD-41389 for additional requirements.
What you'll need
- Completed Form RPD-41390, including Schedule A.
- The New Mexico income tax return to which you are applying the credit.
- The applicable credit schedule: PIT-CR, CIT-CR, S-Corp-CR, or FID-CR.
- TRD approval documentation to enter the credit approval number, employer's tax year of eligible employment, and approved credit amount.
- Information about credit amounts claimed in earlier report periods so you can calculate the unused balance.
You will also need the claimant's name, FEIN or SSN, report-period dates, and net New Mexico income tax before credits.
How to file
- Obtain TRD approval by submitting Form RPD-41389 before claiming the credit.
- Complete Form RPD-41390 with the claimant's name and FEIN or SSN. Check the box identifying which number you entered.
- Enter the report-period dates on line 1 and net New Mexico income tax before credits on line 2.
- Complete Schedule A with a row for each approved credit being reported. Enter the total of column (f) on line 3 of Form RPD-41390. The credit claimed cannot exceed the net New Mexico tax due.
- Sign and date the form. Enter the claimed credit on the applicable PIT-CR, CIT-CR, S-Corp-CR, or FID-CR schedule and attach the required forms to your return.
E-file: You may claim the credit when electronically filing your personal or corporate income tax return through Taxpayer Access Point (TAP). Log in and follow the prompts to add the applicable credit schedule and required attachments.
By mail: Attach Form RPD-41390 and the required attachments to the tax return. Mail them to the address printed on that return.
For help claiming the credit, call (505) 827-0792 or email BusinessCredit.Mgr@state.nm.us.
Common mistakes
- Missing attachments: The form warns that failing to attach Form RPD-41390 and other required attachments to your New Mexico return will result in denial of the credit. All claimants must complete and attach Schedule A.
- Claiming more than the tax due: Do not enter a credit amount greater than the net New Mexico income tax calculated before credits.
- Including fully used credits: Do not include credits on Schedule A that have already been claimed in full.
Questions people ask
How much is the credit?
The credit is up to $1,000 for wages paid to each qualified foster youth. If the qualified employment period is less than a full year, the credit is reduced based on that period compared with the employer's full tax year.
Can I get a refund for unused credit?
No. Approved credit that exceeds your income tax liability is not refundable, but it may be carried forward for up to three years.
Can I transfer the credit to another taxpayer?
No. However, a business entity taxed federally as a partnership may allocate the right to claim the credit to its owners in proportion to their ownership interests. See Form RPD-41389 for allocation details.
What if married taxpayers file separate returns?
If they could have filed a joint return for that tax year, each may claim only one-half of the foster youth employment tax credit that would have been claimed on a joint return.