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Form 940 (Schedule R) for Surprise Arizona: What You Should Know
Federal Tax on Income of Foreign Earned Income Beneficiaries in Arizona Under Arizona law, you have a right to claim a credit for income taxes paid to another state, in this case New Mexico. Under New Mexico law, only individuals and unmarried couples with income of 150,000 or less may have a credit. The credit is equal to 20% of the state tax liability. There may be additional income tax due to California and Nevada for the first 100,000 of income. This tax benefit is available only to beneficiaries of the New Mexico Retirement Plan or the New Mexico Permanent Fund Dividends Fund. There is no New Mexico state income tax.
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