NEW MEXICO (KRQE) – Hundreds of thousands of New Mexico tax filers can expect to see an extra $250 or $500 in their bank accounts this morning, as the state has begun processing a new round of tax rebates. The rebates, which are tied to how much money tax filers made in the 2021, are said to be going out to more than 500,000 people via direct deposit today, Wednesday, July 6, according to the New Mexico Tax and Revenue Department (TRD.)
As mentioned, the latest rebates are tied to individual income levels, or a tax filer’s “adjusted gross income.” Tax filers who filed under “single” status, or as an individual, will receive a $250 rebate if they made $75,000 or less in adjusted gross income in 2021.
Tax filers who filed jointly as a married couple or a head of household can receive a larger check, depending on how much adjusted gross income they made last year. They’ll receive a $500 rebate if they made $150,000 or less in 2021.
Curious about how to check your adjusted gross income? Look at your tax return paperwork. On 2021 forms, the dollar figure is listed on the first page in box 11.
According to TRD, roughly 710,000 New Mexicans will receive the tax rebates over the month of July. The July rebates are a one-time payment, approved by the legislature in February 2021 as a tool to “aid in the state’s short run recovery from the pandemic by increasing consumption.”
Didn’t get a direct deposit rebate yet?
If you believe you’re owed a rebate, but don’t get a rebate via direct deposit this week, it’s likely your rebate will sent via a paper check. Those paper checks will be sent out over the entirety of July.
According to TRD, as many as 210,000 New Mexico tax filers will receive paper checks from the July rebate program. The state only has the capacity to print 14,000 checks per day. That means some people may be waiting until the end of July to receive a rebate.
“Again, we are asking people to be patient and wait until the end of July before calling to ask about a rebate,” New Mexico Tax and Revenue Department Communications Director Charlie Moore recent told KRQE News 13. “Our call center has been overwhelmed by the volume [of call about economic relief payments,] even though we have pulled in staffers from throughout the Department to help answer calls.”
When’s the next round of rebates?
As mentioned, the latest “July rebates” are different because they’re tied to 2021 income levels. The other rebates New Mexicans receive this year, are not tied to income levels.
A first round of economic relief rebates was released in May and June, sent to every New Mexico tax filer and some rebate applicants, regardless of income. That first round went to nearly 800,000 New Mexicans, worth some $290 million.
Round two of the economic relief payments is expected to be sent out to New Mexicans in August, worth either $250 of single tax filers or $500 for joint tax filers / heads of households. Hundreds of thousands of New Mexicans will receive those rebates via direct deposit, but many will also receive paper checks, again.
TRD hopes it won’t take as long to distribute the August rebates going out via paper check. In a release, TRD said, “the Department has contracted with the state’s fiscal agent, Wells Fargo Bank, to print and distribute checks for the final round of rebates this August.” The state says Wells Fargo’s printing capacity is larger than the state’s, which should speed the distribution of August rebates.