ELIMINATE SOCIAL SECURITY TAX

HB 293 would remove income limits for New Mexico residents claiming an exemption on Social Security income under state tax law. Currently, the exemption is capped at $75,000 for married individuals filing separately, $150,000 for joint filers, and $100,000 for single filers. The bill eliminates these caps, allowing all Social Security income to be exempt from state income tax regardless of total earnings. This change would directly affect higher-income Social Security recipients (e.g., retirees) who currently face partial taxation on their benefits. The amendment applies to tax years beginning January 1, 2025.