Form PIT-B new mexico

[Horseaddict]

The program automatically populates the form credit for taxes paid to other states. I need to allocate the income on the PIT B, and remove the Credit form.  Any ideas of removing the form?

[Just-Lisa-Now-]

Im not familiar with NM itself, but if youve got a resident/nonresident situation happening, credit for taxes paid to another state seems appropriate....did you use the state allocation area at the bottom of the Federal Information worksheet to allocate the income to the correct states?

[Horseaddict]

Thanks for response.  I actually file the return with the credit, however New Mexico has reduced the refund and in a letter stated that the allocation form should be used.  

The taxpayer sold rental property in another state and recognized a capital gain, but is a full-year resident of new Mexico.  It was my determination as a full year resident, he would simply receive credit for the taxes paid.  New Mexico apparently disagrees.

[Just-Lisa-Now- · Accepted solution]

hmmm, some states are reverse credit states (where the non resident state gives credit, not the resident state), but again, Im not familiar with NM.

[Horseaddict]

Thanks for your help. I think I need to contact tech support regarding the program issues. I believe I will need to do the allocation, but I disagree with the tax liability that the state is calculating. I appreciate your input. 

[Miche]

I had this exact same problem. Proseries needs to correct this for New Mexico.

[Miche]

Again, I had this exact same problem: My full year NM resident client has rental property in North Dakota. I filed 2020 New Mexico PIT-1 with Line 20 credit for taxes paid to other state (Proseries rep insisted this was okay) even though I knew I should use the PIT-B. And sure enough I got the NM Tax & Rev letter stating that the PIT-B Allocation form must be used and they reduced my client's refund.  I am still trying to amend the 2020 PIT-1 with the inclusion of the PIT-B in order to get my client's full refund...I've had to override things to get it to work. Good thing (is there any good thing in this situation?) is I'm snail mailing the amended in so overrides won't matter. But it rubs me the wrong way to have to do it like this...so messy and time consuming!

And now here I am again for 2021 having the same infuriating problem! Proseries needs to fix New Mexico software already!!!!!