SENATE BILL 781

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Steve Komadina

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX DEDUCTION FOR TAXPAYERS WHO PROVIDE EDUCATION FOR THEIR CHILDREN THROUGH TUTORING OR HOME SCHOOLING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--EDUCATION--TUTORING--HOME SCHOOL.--

          A. A resident who files an individual New Mexico income tax return and is not a dependent of another taxpayer may claim a deduction from net income for each dependent of the resident who:

                (1) attended a public school and was tutored on any subject included in the dependent's public school curriculum; or

                (2) was home schooled, as that term is defined in the Public School Code, during the school year that ended during the taxable year; and

                (3) was claimed as a dependent on the resident's federal income tax return or, if the resident did not file a federal return, would have been entitled to be claimed as a dependent on the resident's federal return.

          B. The amount of the deduction that may be claimed under this section is an amount equal to actual expenses paid during the taxable year for tutoring or home schooling a dependent.

          C. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the deduction that would have been allowed on the joint return.

          D. To claim the deduction provided in Paragraph (2) of Subsection A of this section, the resident shall attach to the resident's New Mexico income tax return a copy of the resident's notification submitted pursuant to Section 22-1-2.1 NMSA 1978.

          E. As used in this section, "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2007.

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