For military retirement income included in federal AGI, New Mexico offers a deduction from New Mexico taxable income as follows:
| Tax Year | Allowed Exemption per qualified individual |
| 2022 | $10,000 |
| 2023 | $20,000 |
| 2024 | $30,000 |
| 2025 | $30,000 |
| 2026 | $30,000 |
To subtract military retirement income from the New Mexico individual tax return in TaxSlayer Pro, from the New Mexico Tax Return Menu select:
- Subtractions from Federal AGI
- Exemption for armed forces retirement pay - Enter the eligible military retirement as a positive number.
Additional Information:
New Mexico: Forms and Instructions
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