New Mexico Instructions for Form FID-1 Fiduciary Income Tax Return

Instructions for Form FID-1 Fiduciary Income Tax Return
Form FID-1-2018 (Obsolete)
STATE OF NEW MEXICO
Taxation and Revenue Department
P.O. Box 25127
Santa Fe, New Mexico 87504-5127

2018 New Mexico

Instructions for Form FID-1
Fiduciary Income Tax Return
READ THE INSTRUCTIONS CAREFULLY. They answer most questions, save time, and may save money. File your return
as early as possible. If you have additional questions, visit our website at www.tax.newmexico.gov.
Our contact information is:
		
	
	
	

Telephone: (505) 827-0825 in Santa Fe or toll free (866) 809-2335, option 4
E-mail: [email protected]
Mailing address: New Mexico Taxation and Revenue Department
ATTENTION: Corporate Income and Franchise Tax
P. O. Box 25127
Santa Fe, New Mexico 87504-5127

These Instructions Cover the Following Forms:

Your Electronic Services

FID-1,	 Fiduciary Income Tax Return

	 File 2018 Form FID-1 Online. New Mexico's Taxation and
Revenue Department made online filing available for Fiduciary Income Tax Returns. Using Taxpayer Access Point
(TAP), you may file and pay fiduciary income taxes online.
Logon or create a TAP account at https://tap.state.nm.us. If
you already have an account, click the Accounts tab then
select FID Account. If you have not filed a FID-1 return on
TAP before, you will need to add your FID account by selecting the Access Another Account option from the home
page. After you complete all your entries and click Submit to
file, you will be given options on how to make your payment.

FID-B, 	Computation of New Mexico Percentage
FID-CR, Tax Credit Schedule
FID-EXT, Extension Payment Voucher
FID-PV, Tax Payment Voucher
FID-ES, Estimated Tax Payment Voucher
FID-D, Fiduciary Pass-Through Entity Withholding
		 Detail Report

2018 Legislative Summary

For information about New Mexico tax law changes enacted during 2018, see 2018-B-100.31, Legislative Summary. Legislative
summaries are available for each year, providing a brief description
of new legislation passed during that year affecting the Taxation
and Revenue Department. Visit our web page and click on "Forms
and Publications", then search the "Bulletins" for the Legislative
Summary for the year in which the legislation passed.

	 Pay via electronic check or credit card - Taxpayers may
pay taxes over the Internet by electronic check at no charge.
An electronic check authorizes TRD to debit your checking
account in the amount and on the date you specify. You may
also pay with a credit card. A convenience fee is calculated
on the amount of the transaction and covers costs that the
companies bill the state when you use your card.

	 Calendar filing and payment online - Your return and
payment are due on or before the last day of the month in
which the entity's corresponding federal calendar return is
In general, the federal return that you are required to or
due for the taxable year. All other taxpayers must file by
elect to file determines the New Mexico income tax return
the 15th day of the same month the entity's corresponding
that you file. See the chart on the next page.
federal calendar return is due for the taxable year.
Which Form to File:

Fiscal year and short year filers use the FID-1 return ap- 	 Download forms, publications and brochures - Taxpayers
plicable to the tax year in which the fiscal year or short year
may access forms, publications and brochures from our
begins. For example, if the tax year begins on June 30,
website.
2018, use the 2018 FID-1 return, regardless of the ending
date of the tax year.
	 Ask a question - You can ask general questions
ab out N ew M ex ic o t a xe s using t he e - mail ad You can download all New Mexico Taxation and
dress [email protected] or ask about your
Revenue Department (TRD) forms, instructions,
t a x r e t u r n a t C I T.Ta x R e t u r n H e l p @ s t a t e . n m . u s
and information brochures from the TRD website at
www.tax.newmexico.gov or by contacting the Department.
FID-1					

1

www.tax.newmexico.gov

If you file Federal form...	

You file New Mexico form...

1065

PTE	

1120	

	 U.S. Return of Partnership Income	
U.S. Corporation Income Tax Return	

Information Return for Pass-Through Entities

CIT-1	 Corporate Income and Franchise Tax Return

1120S 	 U.S. Income Tax Return for an S Corporation	

S-Corp	 Sub-Chapter S Corporate Income and Franchise Tax Return

1040 	 U.S. Individual Income Tax Return	

PIT-1	 Personal Income Tax Return

1041

	 U.S. Income Tax Return for Estates and Trusts 	 FID-1	 Fiduciary Income Tax Return

______________________________
FIDUCIARIES REQUIRED TO 
FILE A NEW MEXICO RETURN
______________________________
Every fiduciary who is required to file
a U.S. fiduciary income tax return (federal Form 1041), except a fiduciary of
a grantor trust who is required to file
federal Form 1041 under the provisions
of federal regulation 1.671-4(a), must
file a FID-1, New Mexico Fiduciary
Income Tax Return, if any of the following is true:
•	 The trustee is a “resident” of New
Mexico.
•	 The estate is of a decedent who was
a resident of New Mexico.
•	 The estate or trust has income from:
a.	 A transaction of business in,
into, or from New Mexico; or
b.	 Property in New Mexico; or
c.	 Compensation in New Mexico.
An estate is DOMICILED IN NEW
MEXICO if the decedent was domiciled
in New Mexico. A trust is DOMICILED
IN NEW MEXICO if the trustee is domiciled in New Mexico, or if the principal
place from which the trust is managed
or administered is in New Mexico.
Grantor Trusts
Generally, grantor trusts are not required to file a FID-1 return. However, if
a grantor trust has become irrevocable
upon the grantor's death, the grantor
trust must file a FID-1. If the grantor
trust, including a living trust, distributes
taxable New Mexico net income that
exceeds $20,000 in a calendar year,
the grantor trust must file a FID-1.
A grantor trust is a pass-through entity
(PTE) and subject to withholding on
New Mexico net income distributed
when the income distributed is taxable to the beneficiary. The grantor
trust must also file Schedule Fiduciary
Pass-Through Entity Withholding Detail Report (FID-D). See Withholding
FID-1					

for Non-Resident Beneficiaries of
a Pass-Through Entity in the next
section. Also see special instructions
for FID-1, line 1, for grantor trusts who
file the FID-1 return.
Non-Resident Trusts
New Mexico’s law says every person,
including an estate or trust, who has
income from New Mexico sources
and who is required to file a federal
income tax return must file an income
tax return in New Mexico. This includes
non-residents who have income from
wages, rents, royalties, businesses,
estates, and every other New Mexico
source. Even foreign nationals and
people who live in states that do not
have income taxes must file in New
Mexico when they have a federal filing
requirement and have income from any
New Mexico source whatsoever.
______________________________
WITHHOLDING FOR
NON-RESIDENT BENEFICIARIES
OF A PASS-THROUGH ENTITY
______________________________
Beginning January 1, 2011, an estate
or trust that distributes New Mexico
allocable net income taxable to its
beneficiaries is a PTE and subject to
withholding pursuant to the Oil and
Gas Proceeds and Pass-Through
Entity Withholding Tax Act (Sections
7-3A-1 through 7-3A-9 NMSA 1978).
As a PTE, the estate or trust is required
to withhold from the non-resident beneficiary's share of taxable New Mexico
net income of the estate or trust. The
withholding rate is 4.9%.
The required annual withholding is
paid with Schedule FID-D. When the
income is taxable to the beneficiary,
the beneficiary is included on Schedule
FID-D, and FID-D is due even if no tax
was withheld. When the income distributed is not taxable to the beneficiary,
as in the case of some grantor trusts,
the distributed income is not included
on FID-D.
2

Certain exceptions to the requirement
to withhold are allowed, and you must
maintain documentation in the PTE's
records to establish that the PTE had
reasonable cause for not withholding.
See Reasonable Cause for Not Withholding for a complete list of exceptions
on page 28 of these instructions.
If a PTE has 50 or fewer beneficiaries
who receive New Mexico taxable net
income, the estate or trust may submit
the completed Schedule FID-D with the
FID-1 return.
If a PTE has 51 or more beneficiaries
who receive New Mexico taxable net
income, the estate or trust is required
to electronically file Schedule FID-D
through the Department’s website or
through approved third-party software.
If the PTE has 51 or more New Mexico
payees, and is unable to file electronically because a hardship exists, the
PTE may request Department approval
to file by paper. The PTE may request
approval by filing Form RPD-41350,
E-File Exception Request Form. The
request must be received by the Department at least 30 days before the
taxpayer’s electronic report is due.
When required to be filed electronically,
a paper filed Schedule FID-D will be
rejected by the Department.
Schedule FID-D, is due on or before
the due date of the entity’s federal return for the tax year. If a pass-through
entity is not required to file a federal
income tax return for the tax year, the
entity must file Schedule FID-D with
the Department no later than 105 days
after the end of its tax year.
If a federal automatic extension or a
New Mexico extension is obtained for
the FID-1 return, the extension also
applies to the filing of Schedule FID-D.
An extension waives penalty but does
not waive interest.
www.tax.newmexico.gov

Other Reporting Requirements.
Estates and trusts are also required
to provide sufficient information to
allow beneficiaries to comply with the
provisions of the Income Tax Act and
the Corporate Income and Franchise
Tax Act, with respect to the beneficiary’s share of the taxable net New
Mexico income. An estate or trust uses
federal Forms 1099-Misc, pro forma
1099-Misc, or Form RPD- 41359, Annual Statement of Pass-Through Entity
Withholding, to report to the beneficiaries the allocable net income and the
New Mexico tax withheld. These forms
must be provided to the beneficiary by
February 15th of the year following the
year for which the statement is made.
These forms are not required to be
submitted to the Department when
reported on the Schedule FID-D.
The fiduciary must furnish each beneficiary with a statement detailing the
amount of income allocable or apportionable to New Mexico for each type
of income shown on Federal Schedule
K-1. In addition, this statement is expected to show the amount of each
beneficiary’s share of interest from
obligations of the U.S. government and
federally tax-exempt interest distributed
from the estate or trust, and the portion
of such items allocable to New Mexico.
A Schedule K-1 or equivalent is not sufficient evidence of New Mexico income
tax withheld.
IMPORTANT: To receive proper credit
for withholding, all annual statements
must be issued to the entity filing the
New Mexico income tax return.
______________________________
ATTACHMENTS TO FID-1 RETURN
______________________________
You must complete and submit all
required forms and schedules, including attachments, as indicated in the
instructions. Incomplete returns delay
processing and may cause the form to
be returned to you without processing.
Attach the following to your FID-1 in
this order:
•	

•	

If income is received from sources
both inside and outside New
Mexico, complete and attach Form
FID-B Schedules 1 and 2.
If tax credits are claimed on line 11

FID-1					

or 24, FID-1, attach Schedule FIDCR. Make sure to attach any additional required documentation.
•	

Attach all annual statements of income and withholding issued to the
estate or trust. This includes New
Mexico Forms RPD-41359, Annual Statement of Pass-Through Entity Withholding, and RPD-41285,
Annual Statement of Withholding
of Oil and Gas Proceeds; federal
Form(s) W-2 and 1099-Misc; and
any other income and withholding
statement received.

•	

If a credit is claimed for taxes paid
to another state, attach a copy of
the tax return(s) from the other
state(s) and the worksheet(s) on
page 8, Worksheet for Computation of Allowable Credit for Taxes
Paid to Other States by New Mexico Residents.

•	

Attach federal tax return Form
1041, pages 1 and 2.

•	

If you are an Electing Small Business Trust (ESBT) with taxable
income used to compute the tax
on the S portion of the ESBT that
you included on line 1 of the FID1 return, also attach the ESBT
calculation schedule from your
federal Form 1041.

•	

•	

If you have an unused New Mexico net operating loss carryforward amount from a previous
year, attach Form RPD-41375,
Net Operating Loss Schedule
For Fiduciary Income Tax, to your
return showing the tax year when
each New Mexico net operating
loss occurred. The schedule also
should list each loss for each tax
year for which it was carried forward, including 2018.
If the estate or trust, who is also a
pass-through entity (PTE), has 50
or fewer beneficiaries who receive
New Mexico taxable net income,
the estate or trust may submit the
completed Schedule FID-D with
the FID-1 return.

If a PTE has 51 or more beneficiaries
who receive New Mexico taxable net
income, the estate or trust is required
to electronically file Schedule FID-D
3

through the Department’s website
or an approved third-party software.
When electronically filed, the FID-D is
filed separately from the FID-1 return.
NOTE: The Department may require
any taxpayer to furnish a complete,
true and correct copy of the federal
fiduciary income tax return, including
all attachments and schedules.
______________________________
WHERE TO GET FORMS, 
INSTRUCTIONS, AND HELP
______________________________
You can download all New Mexico
Taxation and Revenue Department
(TRD) forms, instructions, and information brochures from the TRD website at
www.tax.newmexico.gov. You can also
get forms and help by calling (505) 8270825 in Santa Fe or toll free at (866)
809-2335, option 4. If you prefer, you
can contact the Department by email
at [email protected].
File Returns Only on Approved State
Forms. Always submit Fiduciary Income Tax Returns on official state forms
provided by or approved by TRD. Never
submit a return with a form that has
been photocopied or photo shopped
as it will not be accepted.
TRD approves forms from companies
that follow our specifications and format
requirements for the electronic file. Acceptance of a software company and
its form does not imply endorsement
by TRD or assurance of the quality of
the company's services. TRD:
•	 Does not review or approve the
logic of specific software programs.
•	 Does not confirm calculations on
forms produced by these programs.
The accuracy of the sofware program
remains the responsibility of the software company, developer, distributor
or user.
For a list of companies and products
with FID forms approved by TRD, follow these steps:
1.	 Go to www.tax.newmexico.gov.
2.	 In the black navigation bar at the
top, click TAX PROFESSIONALS.
3.	 On the left under Tax Professionals,
click Overview.
www.tax.newmexico.gov

In the left navigation pane, click Software Developers then select the
document named Approved Software
for Reproducing of 2018 Income
Tax Forms.
CAUTION: Submit only high-quality,
printed, original FID forms and schedules to TRD. A poor print or photocopy
of a form from an approved software
product or from our website delays
processing your return and your refund,
credit or rebate.
______________________________
DUE DATE OF THE 
NEW MEXICO RETURN AND TAXES
______________________________
For fiduciaries that file on a calendar
year basis, the FID-1, 2018 New
Mexico Fiduciary Income Tax Return,
is due on or before April 15, 2019 with
payment of taxes due.
For fiduciaries that file on a fiscal year
basis, the FID-1, 2018 New Mexico
Fiduciary Income Tax Return, is due
on or before the 15th day of the fourth
month following the close of the fiscal
year with payment of taxes due.
Extended Due Date-If you are a calendar year filer and file your return and pay
your tax online, your filing deadline April
30, 2019. For fiduciaries that file online
on a fiscal basis, your filing deadline
is last day of the 4th month after year
end. To avoid penalty or interest, you
must electronically file your return and
electronically pay your tax.
A New Mexico income tax return and tax
payment are timely if the United States
Post Office postmark on the envelope
bears a date on or before the due date.
If the due date falls on a Saturday, Sunday, state or national legal holiday, the
return is timely if the postmark bears the
date of the next business day. Delivery
through a private delivery service is
considered timely if the date recorded
or marked by the private delivery
service is on or before the due date.
_____________________________
EXTENSION OF TIME
TO FILE THE RETURN
______________________________
TRD accepts an automatic extension of
time granted by the Internal Revenue
Service if a copy of the federal extension is attached to a FID-1 return at
FID-1					

the time of filing. If applicable, attach
a copy of the automatic extension
request to your FID-1, New Mexico
Fiduciary Income Tax Return.
If you need an extension of time to file
the New Mexico tax return and do not
require a federal extension of time to
file, Form RPD-41096, Extension of
Time to File, must be received by TRD
on or before the due date of the return.
FID-EXT, Fiduciary Income Tax
Extension Payment Voucher. If you
expect your return to show a balance
due and you have obtained either a
federal automatic extension or a New
Mexico extension, use the FID-EXT
payment voucher to make an extension
payment by mail or delivery. Extension
payments may also be paid using the
Department's website.
By obtaining an extension of time to
file your return, penalty for failure to file
and pay is waived through the extension period, provided you file the return
and pay the tax shown on the return
by the extended due date. However,
interest continues to accrue even if the
taxpayer obtains the extension. If you
expect to owe more tax when you file
your 2018 return, make a payment using the Department's website or using
the 2018 FID-EXT payment voucher
and avoid the accrual of interest.
Mail the payment and voucher to
the address printed on the voucher.
Write "2018 FID-EXT" and the estate
or trust's federal employer identification
number on the check or money order.
______________________________
PAYMENT OF YOUR 
FIDUCIARY INCOME TAX
______________________________
You may pay the fiduciary income tax
due on the Department's website or
by mailing a check with the return. If
submitting the check with the return,
attach the, Fiduciary Income Tax
Payment Voucher (FID-PV) with your
return. Make the check payable to the
New Mexico Taxation and Revenue
Department. Mail the return, attachments and payment to the address
provided on the FID-PV.
Write "2018 FID-PV" and the estate
or trust's federal employer identifica4

tion number on your check to avoid a
misapplication of funds.
When you provide a check as payment,
you authorize the Department to use
information from your check to make a
one-time electronic fund transfer from
your account. When we use information
from your check to make an electronic
fund transfer, funds may be withdrawn
form your account as soon as the same
day you make your payment.
NOTE: Because the Department uses
high-speed scanners when processing
payment vouchers, a quality form helps
ensure accuracy. Do not photocopy.
The scanners can read only one page
size to process vouchers, therefore it
is important that you cut on the dotted
line only. When printing the voucher
from the Internet or a software product,
prevent resizing by setting the printer's
page scaling function to none. If your
payment voucher has a scanline (a
very long row of numbers) within the
bottom 1 and 1/2 inch of the voucher
do not write in the area around the
scanline.
A check that is not paid by the financial
institution on which it is drawn does not
constitute payment. The estate or trust
will be assessed a minimum penalty
of $20 in addition to other applicable
penalties and interest for late payment.
______________________________
INTEREST AND PENALTY
______________________________
Interest. Interest accrues on income
tax that is not paid on or before the
due date of your return. Interest is
a charge for the use of money and
by law cannot be waived. Interest is
computed on a daily basis at the rate
established for individual income tax
purposes by the U.S. Internal Revenue
Code (IRC).
The IRC rate changes quarterly. The
IRC rate for each quarter is announced
by the Internal Revenue Service in the
last month of the previous quarter. The
annual and daily interest rates for each
quarter are posted on our website at
http://www.tax.newmexico.gov/Individuals/penalty-interest-rates.aspx.
Important: Interest accrues even if
there is an extension of time to file
www.tax.newmexico.gov

the return. Once your principal tax
liability is paid, penalty and interest
stops accruing.

•	 When it cannot process your return
(described next).
Processing Requirements
For processing to take place, your
return must show your name and social security number, and your return
must be signed. Your return must also
comply with all the instructions for the
return and contain all attachments
required by the instructions.

The formula for calculating interest is:
Tax due x the daily interest rate for
the quarter x number of days
late = interest due.
Refunds and Interest
If you are due a refund, you may be
entitled to interest on your overpayment at the same rate charged for
underpayments, but only under certain
conditions.

Penalty. If the tax is not paid when due
because of negligence or disregard of
rules or regulations but without intent
to defraud, the fiduciary is liable for
a penalty of 2% per month or partial
month from the date the return was
required to be filed. The penalty cannot
exceed 20% of the amount of tax. The
penalty does not apply if an extension
of time has been approved and if the
tax is paid by the extended due date.
______________________________
NET OPERATING LOSSES
______________________________
Unlike a federal net operating loss
carryfor ward, a New Mexico net
operating loss incurred cannot be
carried back and if incurred on or
after January 1, 2013, may be carried forward for 19 years or until the
total amount of the loss carryover
has been used, whichever occurs
first. For a net operating loss that was
incurred in tax years beginning before January 1, 2013, a New Mexico
net operating loss may be carried
forward for only five years. Refer to
regulation 3.3.1.13(E) NMAC, if the
net operating loss was incurred in a
tax year beginning prior to January
1, 1991.

For a 2018 FID-1, filed in calendar year
2019, the Department pays no interest
in these situations:
•	 When it makes the refund within
55 days of the date of your claim
for refund;
•	 When the interest is less than
$1.00;
•	 When it cannot process your return
(see Processing Requirements
described next); or
•	 If the interest is for a refund of any
credits claimed for the Investment
Credit Act, Laboratory Partnership
with Small Business Tax Credit Act,
Technology Jobs and Research and
Development Tax Credit Act, Affordable Housing Tax Credit Act, Rural
Job Tax Credit, or High Wage Job
Tax Credit.
The Department pays no interest in
these situations:
•	 When it makes the refund within
120 days of the date of your claim
for refund;
•	 When the interest is less than
$1.00; or

You cannot apply a New Mexico net
operating loss carryforward until the
following tax year -- provided you have

filed a timely return -- or until the first
tax year that begins after the date you
file a return establishing the loss.
Use New Mexico Form RPD-41375,
Net Operating Loss Schedule For
Fiduciary Income Tax, to compute
your New Mexico net operating loss
and carryforward. Attach Form RPD41375 to your return showing the
tax year when each New Mexico net
operating loss occurred. The schedule
also shows how the loss for each tax
year for which it was carried forward,
was used.
______________________________
CHANGES IN FEDERAL OR
NEW MEXICO TAXABLE INCOME
DUE TO AN IRS AUDIT OR AN
AMENDED RETURN
________________________________

If the IRS changes the trust's or estate’s taxable income for any tax year,
an amended New Mexico Fiduciary
Income Tax Return and a copy of the
Revenue Agent’s Report must be filed
with the New Mexico Taxation and
Revenue Department within 180 days
of the date the federal adjustment
becomes final.
If the fiduciary files an amended New
Mexico return because of an amended
federal return, the fiduciary must attach
a copy of the federal amended return.
If an amended return is filed because
of a change in New Mexico taxable income, a statement giving the reason for
amending the return must be attached.
To file an amended New Mexico Fiduciary Income Tax Return, use the form
for the year being amended. Mark the
Amended box, at the top of the form.
Payment for any additional amount of
tax due should be attached.

2018 TAX RATE TABLE

To be used for determining the amount of tax to be entered on FID-1, page 1, line 5
If the amount on line 4 is...
over

but not over	

$

0

	

$

plus

of excess over	

5,500

$

0	

1.7%

$

0

5,500

$ 11,000	

$

93.50	

3.2%	

$

5,500

	

$ 11,000

$ 16,000	

$

269.50	

4.7%	

$ 11,000

	

$ 16,000

------------	

$

504.50	

4.9%	

$ 16,000

FID-1					

$

tax shall be

5

www.tax.newmexico.gov

______________________________
YOUR RIGHTS UNDER
THE TAX LAW
______________________________
The Tax Administration Act governs
how the Income Tax Act is administered by TRD and gives you specific
rights and responsibilities. Enacted in
2003, the Taxpayer Bill of Rights adds
provisions to the Tax Administration Act
on confidentiality, hearings, recovery
of costs by a taxpayer who prevails
in litigation against the Department,
timeliness of the Department's audit
completion and approval of credits,
and administrative hearings. The Bill
of Rights also requires that all taxpayers receive a copy of their rights in
each fiduciary income tax packet. See
page 33.

______________________________
FID-1, FIDUCIARY INCOME TAX
RETURN, PAGE 1 LINE
INSTRUCTIONS
______________________________
•	 Type or print the name of the estate
or trust, the name and title of the
fiduciary and the address of the
fiduciary in the spaces provided.

The best ways to avoid tax problems
are to keep accurate tax records and to
keep abreast of changes in the tax law.
These instructions and other Department publications contain information
that can help you do both.

•	 Enter the federal employer identification number of the estate or
trust. Returns can not be processed
without this number.

While most tax problems can be resolved informally, it is important to understand that certain rights provided to
you under law must be exercised within
specific time frames. If an adjustment
is made to your return, a notice will
be sent to you explaining the adjustment with a description of procedures
you may use if you disagree with the
Department's adjustment.
At any time after filing your return, the
return may be subject to further review,
verification or correction. If your tax
return is adjusted or an assessment of
additional tax is issued, you will receive
a copy of Publication FYI-406, Your
Rights Under the Tax Laws, describing
in detail how to dispute a Department
action through either the claim for
refund procedure or the protest procedure. Read these procedures carefully
to ensure you take the necessary steps
to protect your rights.
Publication FYI-406 is available on
the Department's internet home page
at www.tax.newmexico.gov. Click on
"Forms and Publications" then select
the "Publications" folder. Click on
"FYIs" to access all 400 SeriesTax Administration publications.
FID-1					

	

If you have a foreign address, enter the street address, city name
and postal code in the appropriate
line. Also complete the spaces for
the foreign province and/or state
and country. Follow the country’s
practice for entering the foreign
postal code, the province or state,
and country. Do not abbreviate the
country name.

•	 Mark the appropriate reporting period - calendar year or fiscal year. If
the return is based on a fiscal year,
enter the beginning and ending
dates.
•	 Mark the appropriate boxes for the
type of return.
•	 Mark the box to indicate if the entity
is a New Mexico resident estate
or trust.
•	 Complete lines B through D.
•	 Round all dollar amounts to the
nearest whole dollar.
•	 Computerized schedules will not
be accepted in lieu of completing
the appropriate line items on FID-1,
page 2, FID-B, Schedule 1 and 2,
FID-CR, or FID-D.
•	
Line E. Mark this box only if you have
elected to use an alternative method
of computing estimated tax due. If
you do not elect to use an alternative
method, do not mark this box and the
Department will compute your liability,
if any, using the standard method.
See the instructions for the FID-ES
payment voucher on page 31 of these
instructions for more information on the
alternative methods.

6

To elect to use an alternative method
of calculating estimated tax, you must
enter 1, 2, 3, 4 or 5 in the checkbox
to indicate the method used and attach Form RPD-41272, Calculation
of Estimated Personal Income Tax
Underpayment Penalty, to your FID-1
return. Enter 1 if you wish to compute
estimated payments based on the
actual dates on which all amounts of
withholding tax were withheld for the
applicable tax year. If you have annualized income and are required to file
estimated payments beginning with
the 2nd, 3rd or 4th quarter estimated
installment due date, enter 2, 3 or 4,
respectively. If you qualify for special
rules because you have farm or ranch
income, enter 5.
Line G1-G6. Please refer to your
federal Form 1041.
Line 1. Federal taxable income of
fiduciary. Enter the federal taxable
income of the estate or trust from federal
Form 1041. For electing small business
trusts (ESBT), federal taxable income
also must include the federal taxable
income used to compute the tax on the
S portion of an ESBT, included on the
federal Form 1041, Schedule G. Enter
the federal taxable income on the S
portion of an electing small business
trust (ESBT) in the space provided to
the right of line 1, preceded by "Sec.
641(c) federal taxable income". Include
the amount in the federal taxable income of the fiduciary reported on line
1. Attach the ESBT calculation schedule
from your federal Form 1041.
The S portion of an ESBT is the portion of the trust that consists of stock in
one or more S corporations and is not
treated as a grantor trust. For federal
tax purposes, the tax on the S portion
is figured separately from the tax on
the remainder of the ESBT. For New
Mexico state tax purposes, the tax on
the S portion income is calculated in
the same manner as all other federal
taxable income of the fiduciary.
If the trust is a grantor trust not required
to file a federal fiduciary return but files
a New Mexico FID-1 because it distributed taxable New Mexico net income
in excess of $20,000 in the current tax
year, the grantor trust completes the
www.tax.newmexico.gov

q

If you computed tax on lump-sum distributions, retain this worksheet for your records

q

WORKSHEET FOR COMPUTING TAX ON LUMP-SUM DISTRIBUTIONS
1.	 New Mexico taxable income from line 4 of the FID-1 return........................

1.

2.	 Amount of lump-sum income reported for purposes of 10-year tax
	
option or capital gains election on federal Form 4972.................................

2.

3.	 Multiply line 2 by 0.20 and enter the total ..................................................

3.

4.	 Add lines 1 and 3.........................................................................................

4.

5.	 Enter the tax from the tax rate tables for the amount on line 4 of this work	sheet............................................................................................................

5.

6.	 Enter the tax from the tax rate tables for the amount on line 1 of this
	worksheet.....................................................................................................

6.

7.	 Subtract line 6 from line 5 and enter the difference....................................

7.

8.	 Multiply the amount on line 7 by 5. (This is the additional averaged
	
tax due on the lump-sum income.) ..............................................................

8.

9.	
	
	
	
	
	
	

If a New Mexico percentage is computed on line 16, Schedule FID-B,
multiply that percentage by the amount on line 8 of this worksheet and
enter here. If line 16, FID-B is zero or no New Mexico percentage is
computed, enter the amount from line 8 on this worksheet. Also enter
this amount on line 8, FID-1 return..............................................................

9.

Attach federal Form 4972 to the FID-1 return.

top section of the FID-1 return, enters
zero in line 1, and records tax withheld information on lines 14 through
18. The remainder of the form is left
blank. Be sure to attach annual withholding statements, 1099-Misc, Form
RPD-41285, Annual Statement of Withholding of Oil and Gas Proceeds, or
Form RPD-41359, Annual Statement
of Pass-Through Entity Withholding.
Line 2. Additions to federal income.
Enter additions to federal taxable income from FID-1, page 2, line 3 (federal
net operating loss and non-New Mexico
municipal bond interest).
Line 3. Deductions from federal income. Enter deductions from federal
taxable income from FID-1, page 2,
line 7 (New Mexico net operating loss,
interest income from U.S. government obligations, and net capital gain
deduction).
Line 5. Tax. Using the tax rate table
on page 5 of these instructions, calcuFID-1					

late and enter the tax on the income
reported on line 4. Enter the tax computed on line 5.
Line 6. New Mexico percentage. An
estate or trust which has income from
both within and outside New Mexico
should complete and file FID-B, Schedules 1 and 2. Enter the New Mexico
percentage from line 16 of the FID-B
Schedule 1.
Line 7. New Mexico income tax.
Multiply line 5 by the percentage on
line 6. If FID-B is not required, enter
the amount from line 5.
Line 8. Tax on lump-sum distributions. If the estate or trust is a resident
New Mexico estate or trust which
received a lump-sum distribution and
used the federal special 10-year averaging tax option on federal Form 4972, it
must complete the worksheet at the top
of page 8 to compute the New Mexico
averaged additional tax.
7

Line 10. Credit for taxes paid to
another state(s). A resident, New
Mexico estate or trust who must pay
tax to another state on income that is
also taxable in New Mexico may take
a credit against New Mexico tax for tax
paid to the other state.
The credit is for tax that another state
imposes on any portion of income that
by law is included in New Mexico net
income. Do not include tax withheld
when calculating the allowable credit.
If the specific item of income is not
subject to taxation in both states, no
credit is available.
The credit may not be more than:
•	 The New Mexico tax liability due on
the return,
•	 The tax paid to the other state, and
•	 The amount of New Mexico income
tax liability computed on that portion
of income that is taxed in both states.

www.tax.newmexico.gov

Worksheet for Computation of Allowable Credit for
Taxes Paid to Other States by New Mexico Residents
	

NOTE: Complete a separate worksheet for each state that
imposed tax on income also taxed in New Mexico.

Column 1

Column 2

From the New
Mexico return

From the other
state’s return

1.	 Enter amount of tax due to the state on the return.....................

1._____________

1.____________

2.	 Enter taxable income on which you calculated the tax on line 1.
	
If applicable, enter the state’s taxable income after applying the
state’s allocation and apportionment percentage. For New
Mexico, this is from FID-1, line 4 (New Mexico Taxable
Income) multiplied by the New Mexico percentage, if any, on
FID-1, line 6...............................................................................

2._____________

2.____________

3.	 DIVIDE line 1 by line 2. This is the average effective tax rate on
the state’s income. Calculate to four decimal places
(e.g., 0.0463)...............................................................................

3._____________

3.____________

4.	 From each state’s return, enter the portion of income subject to
tax in both states, but not more than the amount on line 2.
	
Note:The amount in column 1 will be the same as the amount in
column 2......................................................................................

4._____________

4.____________

5.	 MULTIPLY line 3 by line 4............................................................

5._____________

5.____________

6.	 Enter the lesser of line 5, column 1 and line 5, column 2, but not
	
more than the amount in Column 1, line 1.
	
This is the credit allowed for tax paid to the other state..............

6._____________

Name of other state___________________

Enter the amount from line 6 of this worksheet on the 2018 FID-1 return, line 10. If you claim a credit for tax paid
to multiple states, sum the amounts on line 6 from the worksheets you completed for each state, and enter the
amount on the 2018 FID-1 return, line 10.

Please attach this worksheet(s) to your 2018 FID-1 return
if you are claiming credit for taxes paid to another
state on page 1, line 10 of the FID-1 return.

FID-1					

8

www.tax.newmexico.gov

Complete the worksheet on page 8 and
attach a copy of the worksheet and the
income tax return from the other state to
the FID-1 return. Do this for each state
for which you wish to claim a credit.

•	

Cancer Clinical Trial Tax Credit,

•	

Electronic Card-Reading Equipment Tax Credit,

•	

Foster Youth Employment Tax
Credit,

"State" includes the District of Columbia, the Commonwealth of Puerto Rico,
any territory or possession of the United
States, and states and provinces of
foreign countries. Do not include in the
calculation of the credit those income
taxes paid to any municipality, county
or other political subdivision of a state
or to any central government of a foreign country. "State" does not include
central governments.

•	

Geothermal Ground-Coupled Heat
Pump Tax Credit,

•	

Job Mentorship Tax Credit,

•	

Land Conservation Incentives
Credit,

•	

Preservation of Cultural Property
Credit,

•	

Rural Job Tax Credit,

•	

Line 11. Total tax credits applied
against the income tax liability on
line 9. If you may claim any of the tax
credits listed next, complete Schedule FID-CR and attach the applicable
form(s), statements or other required
back-up. Enter the sum of the credits
claimed and applied against tax due
from Schedule FID-CR, line A. The
supporting documentation required to
claim any of the tax credits is described
in the section "Line Instructions For
Completing Schedule FID-CR" beginning on page 16 of these instructions.
The required documentation must accompany the return, or the claim for
the credit will not be allowed.
To calculate the amount that may be
claimed for any tax year, refer to the
claim form or supporting instructions
for the tax credit. The sum of credits
claimed on Schedule FID-CR may
not exceed the income tax claimed on
FID-1, line 9 less the amount in line 10.

Rural Health Care Practitioners
Tax Credit,

•	

Solar Market Development Tax
Credit,

•	

New Sustainable Building Tax
Credit,

•	

Technology Jobs (Additional) Tax
Credit,

•	

Technology Jobs and Research
and Development (Additional) Tax
Credit,

•	

Veterans Employment Tax Credit

•	

Film Production Tax Credit, and

•	

Renewable Energy Production
Tax Credit.

An estate or trust with income subject
to New Mexico income tax may be
eligible for the following income tax
credits:

For more information on business
related credits, see Publication FYI106, Claiming Tax Credits for CRS &
Businsess-Related Income. FYI-106 is
available on the Department's internet
home page at www.tax.newmexico.gov
Click on "Forms and Publications" then
select the "Publications" folder. Click on
"FYIs" to access all 100 Series- Tax
Administration publications.

•	

Affordable Housing Tax Credit,

•	

Angel Investment Credit,

•	

Agricultural Water Conservation
Tax Credit,

•	

Advanced Energy Tax Credit,

•	

Agricultural Biomass Income Tax
Credit,

•	

Business Facility Rehabilitation
Credit,

•	

Blended Biodiesel Fuel Tax Credit,

FID-1					

You may also claim on this form any
portion of approved Film Production
Tax Credit or Renewable Energy
Production Tax Credit that may be
refunded. Any refundable portion of
the renewable energy production tax
credit or the film production tax credit is
reported on line 24 of the FID-1 return.

Line 12. Net New Mexico income
tax. Add lines 10 and 11, then subtract
the total from line 9. Net New Mexico
income tax cannot be less than zero.

9

Line 13. Payments. Enter the total
amount of payments made for 2018.
These payments are submitted to the
Department with a FID-ES, FID-EXT,
a FID-PV payment voucher, or applied
from a prior year. Please check the appropriate box that corresponds to the
reported payments. The payments may
also be made electronically through the
Department's website.
Line 14. New Mexico income tax
withheld not included on lines 15
and 16. Excluding the tax withheld from
oil and gas proceeds or pass-through
entity income reported on line 15 or 16,
enter the total of all other New Mexico
income tax withheld as shown on your
annual withholding statements Form(s)
W-2, 1099, 1099-Misc. Include a copy
of the forms with your FID-1 return.
Line 15. New Mexico income tax
withheld from oil and gas proceeds.
Enter the total of all New Mexico income tax withheld from oil and gas
proceeds received as shown on your
annual withholding statements, 1099Misc, or Form RPD-41285, Annual
Statement of Withholding of Oil and Gas
Proceeds. Be sure to include a copy of
the forms with your FID-1 return.
An entity, including a grantor trust, that
has had tax withheld cannot pass a
withholding statement directly to any
other taxpayer. Generally, the beneficiary must file and report the tax
withheld on its New Mexico income tax
return. However, if the beneficiary is
also a remitter, the tax withheld on the
oil and gas proceeds may be passed to
the remittees by issuing the remittees
an annual withholding statement, Form
RPD-41285, Annual Statement of
Withholding of Oil and Gas Proceeds,
or a pro forma 1099-Misc. The remittees may then claim the withholding on
their income tax return.
Line 16. New Mexico income tax
withheld from a pass-through entity. Enter the total of all New Mexico
income tax withheld on pass-through
entity allocable net income as shown
on Forms 1099-Misc or Form RPD41359, Annual Statement of PassThrough Entity Withholding. Be sure to
include a copy of the forms with your
FID-1 return.
www.tax.newmexico.gov

An entity, including grantor trusts, that
has had tax withheld cannot pass a
withholding statement directly to its
owners, members, partners or beneficiaries (owners). Generally, the
beneficiary must file and report the tax
withheld on its New Mexico income
tax return. However, if the beneficiary
is also a pass-through entity, the tax
withheld may be passed to the owner
of the beneficiary by issuing the owner
an annual withholding statement, Form
RPD-41359, Annual Statement of
Pass-Through Entity Withholding or a
pro forma 1099-Misc. The owner may
then claim the withholding on their
income tax return.
Line 17. Amount from lines 15 and
16 passed to beneficiaries and reported on FID-D. Enter the amount
of tax withheld from lines 15 and 16,
which was subsequently passed on
to the beneficiaries of the estate or
trust. The fiduciary reports withholding that is passed to beneficiaries
by issuing them Form RPD-41359,
Annual Statement of Pass-Through
Entity Withholding, Form 1099-Misc
or a pro-forma Form 1099-Misc. The
beneficiaries may then take credit for
the withholding on their corporate or
personal income tax return.
When an estate or trust that is a PTE
passes tax withheld to its beneficiaries, the income tax withheld is also
reported on Schedule FID-D.
Line 18. Total payments and tax withheld. Subtract line 17 from the sum of
lines 13 through 16.
Line 19. Tax Due. If line 12 is more
than line 18, enter the tax due.
Line 20. Penalty. Add penalty if you file
late and owe tax, or you do not pay the
tax on or before the date the return is
due. Calculate penalty by multiplying
the unpaid amount on line 19 by 2%
then by the number of months or partial
months for which the payment is late,
not to exceed 20% of the tax due. You
may leave this line blank if you wish the
Department to compute the penalty for
you. The Department will send you a
bill for any penalty due.
Line 21. Interest. Add interest if the
amount of tax due on line 19 was not
FID-1					

paid by the original due date, even if an
extension of time to file was obtained.
You may leave this line blank if you
wish the Department to compute the
interest for you. The Department will
send you a bill for any interest due.
Interest is computed on a daily basis
at the rate established for individual
income tax purposes by the U.S. Internal Revenue Code (IRC). The IRC
rate changes quarterly. The IRC rate
for each quarter is announced by the
Internal Revenue Service in the last
month of the previous quarter.
The annual and daily interest rate for
each quarter will be posted on our
website at www.tax.newmexico.gov.
In the black navigation bar at the
top, click INDIVIDUALS. Under FILE
YOUR, TAXES select Penalty & Interest Rates.
Calculate interest at the daily interest rate for the quarter of the unpaid
amount for each day the payment is
late. The formula for calculating daily
interest is:
Tax due x the daily interest rate for
the quarter x number of days late
= interest due.
Important: Once your principal tax
liability is paid, interest and penalty
stops accruing.
Lines 23 through 23b. Overpayment
If line 18 is more than line 12, you have
an overpayment. Enter the difference
on line 23. Your overpayment can be:
•	 Applied to your 2018 tax liability
(enter on line 23a), or
•	 Refunded to you (enter on line 23b), or
•	 A combination of these.
Line 24. Refundable part of film
production and renewable energy
production tax credits claimed.
Enter the amount of approved refundable renewable energy production tax
credit claimed on Form RPD-41227,
Renewable Energy Production Tax
Credit Claim Form, that you wish to
have refunded to you. Any portion
of the credit to be applied to the tax
due on this return must be entered
10

on Schedule FID-CR. See also "Line
Instructions for Completing Schedule
FID-CR" beginning on page 16 of these
instructions.
Line 25. Total refund of overpaid tax
and refundable credit due to you.
Enter the sum of lines 23b and 24. This
is your total refund of overpaid tax and
refundable credit due to you.
______________________________
FID-1, FIDUCIARY INCOME TAX
RETURN, PAGE 2 LINE
INSTRUCTIONS
______________________________
ADDITIONS TO FEDERAL INCOME
FOR FIDUCIARY (NON-DISTRIBUTED SHARES):
Line 1. Federal net operating loss
carryover. Enter that portion of the
federal net operating loss deduction
claimed on the federal return which has
not been distributed to beneficiaries.
Line 2. Non-New Mexico municipal
bond interest. You may exclude
only federally tax-exempt interest or
dividend income from municipal obligations from the State of New Mexico, its
agencies, institutions, instrumentalities
or political subdivisions, or income from
the obligations of the Commonwealth
of Puerto Rico, Guam, Virgin Islands,
American Samoa or Northern Mariana
Islands. Enter that portion of municipal
bond income from sources other than
those listed above which has not been
distributed to beneficiaries.
DEDUCTIONS FROM FEDERAL
INCOME FOR FIDUCIARY (NONDISTRIBUTED SHARES):
Line 4. New Mexico net operating
loss. Enter the New Mexico net operating loss (NOL) carryover that may be
applied to the liability on your FID-1
return. Use New Mexico Form RPD41375, Net Operating Loss Schedule
For Fiduciary Income Tax, to compute
your New Mexico net operating loss and
carryforward. Attach Form RPD-41375
to your return showing the tax year
when each New Mexico net operating loss occurred. The schedule also
shows how the loss for each tax year
for which it was carried forward, was
used, including 2018.

www.tax.newmexico.gov

Unlike a federal net operating loss carryforward, a New Mexico net operating
loss incurred cannot be carried back
and if incurred on or after January 1,
2013, may be carried forward for 19
years or until the total amount of the
loss carryover has been used, whichever
occurs first.
For a net operating loss that was incurred in tax years beginning before
January 1, 2013, a New Mexico net
operating loss may be carried forward
for only five years. Refer to regulation
3.3.1.13(E) NMAC 1978, if the net operating loss was incurred in a tax year
beginning prior to January 1, 1991.
You cannot apply a New Mexico net
operating loss carryforward until the
following tax year -- provided you have
filed a timely return -- or until the first
tax year that begins after the date you
file a return establishing the loss.
To compute the carryforward amount
from a New Mexico net operating loss
recognized in a previous year, add
together the federal net operating loss
as defined by Section 172(c) of the Internal Revenue Service for the tax year
of the loss and any interest received
on U.S. Government obligations less
related expenses and reported on the
New Mexico tax return for the tax year
of the loss. Subtract out any loss used
in prior tax years.
Line 5. Interest income from U.S.
government obligations. Interest on
obligations of the United States may
be deducted only if the interest was
included in federal taxable income
reported on FID-1, page 1, line 1.
Line 6. Net Capital Gain Deduction.
You may deduct all or a portion of your
net capital gains deduction reported
and claimed on your federal tax return.
You may deduct the greater of:
•	 100% of your net capital gains deduction, not to exceed $1,000; or
•	 50% of your net capital gains deduction
Line 8. Total Distributions of Income
to Beneficiaries. Enter the total
distributions of taxable New Mexico
net income to beneficiaries or other
FID-1					

beneficiaries for the tax year of this
return. The amount of total distributions
of taxable New Mexico net income
to beneficiaries must match the total
New Mexico net income, reported on
line 1 of Schedule FID-D. On line 1
of Schedule FID-D, you must enter
the New Mexico net income that was
distributed to the beneficiaries, not the
net income of the estate or trust. If the
income distributed is not taxable to the
beneficiary, as in the case of some
grantor trusts, including living trusts,
the distributed income is not included
on Schedule FID-D.
See also "Withholding for Non-Resident Beneficiaries of a Pass-Through
Entity" on page 2 of these instructions.
Do not complete or attach Schedule
FID-B if the estate or trust does not
have income from activities both
within and outside New Mexico.
However, if you file FID-B, continue
with the instructions on page 12.
Refund Express
If you request an amount to be refunded to you on line 25, you may wish to
have your tax refund deposited directly
into your bank account through Refund
Express. To choose Refund Express,
complete the “Refund Express” portion on page 2 of the FID-1 return.
All fields are required. Complete the
bank routing number and the account
number. You must indicate the type
of account and you must answer "No"
to question 4. Failure to complete all
fields correctly will cause your Refund
Express request to be denied, and
the Department will mail you a paper
check. The Department will mail you a
paper check if your bank does not accept your Refund Express information.
NOTE: See the instructions for the
film production tax credit claim form for
information regarding choosing refund
express for the refundable portion of
the film production tax credit on line 24.
Refund Express is available for deposits to the taxpayer’s account only.
Taxpayers may not request the
funds to be deposited into the account of another payee. TRD is not
responsible for the misapplication of a
11

direct deposit refund that is caused by
the error, negligence or malfeasance
on the part of the taxpayer.
Important Changes Affecting
Refund Express - Direct Deposit
A direct deposit of your refund, "Refund Express", may not be made to
a bank account located at a financial
institution outside the territorial jurisdiction of the United States. In order
to comply with new federal banking
rules, anyone wishing to have their
refund directly deposited into their
account must answer an additional
question when completing the Refund
Express portion of their return. If you
do not answer the question, your refund will be mailed to you in the form
of a paper check. If you answer the
question incorrectly, your refund may
be delayed, rejected or frozen by the
National Automated Clearing House
Association (NACHA) or the Office of
Foreign Assets Control (OFAC). The
question will ask whether the refund
will go to or through an account located
outside the United States. The question also warns you that if the answer
is "yes", you should not choose the
Refund Express method of delivering
your refund. Your options are to use a
different bank account or to leave the
Refund Express portion of your return
blank and a paper check will be mailed
to the address on the return.
A financial institution is located within
the territorial jurisdiction of the United
States if it is located:
•	 within the United States;
•	 on a United States military base; or
•	 in American Samoa, Guam, the
Northern Mariana Islands, Puerto
Rico or the U.S. Virgin Islands.
REMINDER: The Department will mail
you a paper check if your bank does not
accept your Refund Express information.
Why Use Refund Express?
• 		 Avoid delays that may occur in mailing a check. Refund Express does
not guarantee that you will receive
your refund check earlier, however
— only that when the check is issued, it will reach the bank more
quickly.
• 		 Payment is more secure. There is
no check to get lost.
•		More convenient. No trip to the
www.tax.newmexico.gov

NAME OF ESTATE OR TRUST
123 Main Street
Anyplace, NM 87000

1540

15-000000000

SA

M

PL

PAY TO THE
ORDER OF ___________________________________________________________________________

E

$

_________________________________________________________________________________________________ DOLLARS
ANYPLACE BANK
Anyplace, NM 87000

Routing
Number

Account
Number

For _____________________________________	

Do not include the
check number
_______________________________________________

A211500151 A 2015551517 C 1540
bank to deposit your check.
•		 Saves tax dollars. A refund by direct
deposit costs less than a check.

officer representing the fiduciary.
Complete all information, including a
phone number and e-mail address.

What is the Routing Number?
The routing number is for bank identification and must be nine digits. If the
first two digits are not 01 through 12 or
21 through 32, the system will reject
the direct deposit and you will receive
a check. On the sample check on page
12, the routing number is 211500151.
Your check may state that it is payable through a bank different from the
financial institution where you have
your checking account. If so, do not
use the routing number on that check.
Instead, contact your financial institution for the correct routing number to
enter on this line.

Any person, other than an employee
of the fiduciary, preparing the return
for compensation must also sign and
date the return. A preparer other than
an employee of the entity must enter
the paid preparer's identifying information in the section, "Paid preparer's use
only", next to the taxpayer's signature.
Enter the preparer’s New Mexico CRS
identification number, if the preparer
has one, and the Federal Employer
Identification Number (FEIN), if applicable. All paid preparers must enter
their Preparer's Taxpayer Identification
Number (PTIN).

Entering Your Account Number
Your account number can be up to 17
characters. Include hyphens, but omit
spaces and special symbols. Enter the
number from left to right. Leave unused
boxes blank. On the sample check on
the previous page, the account number
is 2015551517. Do not include the
check number.
You must indicate whether the account
is a checking or a savings account by
entering an "X" in the appropriate box.
Caution: Verify that the information
you enter is correct and that your
financial institution will accept a direct
deposit made payable to the name on
the FID-1 return. NOTE: TRD is not
responsible if a financial institution
refuses a direct deposit.
SIGNATURE. The return must be
signed and dated by a fiduciary or
FID-1					

An improperly signed or unsigned return will be considered invalid for filing
purposes, and penalty and interest may
be assessed.
______________________________
GENERAL INSTRUCTIONS FOR
FID-B, COMPUTATION OF
NEW MEXICO PERCENTAGE
AND BUSINESS INCOME
APPORTIONMENT FORMULA
______________________________
FID-B should be used by fiduciaries
who are filing returns for trusts or
estates having income from activities
both within and outside New Mexico.
For purposes of these instructions,
an estate is DOMICILED IN NEW
MEXICO if the decedent was domiciled
in New Mexico. A trust is DOMICILED
IN NEW MEXICO if the trustee is domiciled in New Mexico or if the principal
place from which the trust is managed
or administered is in New Mexico.

12

______________________________
FID-B, SCHEDULE 1
GENERAL INSTRUCTIONS
FOR COLUMNS 1-4, LINES 1-7
______________________________
You must complete columns 1
through 4 as instructed or the
amounts in columns 3 and 4 may
be denied.
Column 1, Gross: Amounts entered
in this column are the same as those
from federal Form 1041, except for line
2 and line 6, which include amounts
reported on lines 2 and 3 of FID-1.
Column 2, Less Related Expenses/
Distributions: Amounts entered in
this column include deductions and
exclusions from federal Form 1041 that
apply to the specific types of income
reported in column 1 on lines 1-7. Subtract these deductions from the type of
income (lines 1-7) to which they apply.
Related expenses in column 2 must
include distributions to beneficiaries.
If the deduction cannot be applied to
a specific type of income, enter it on
line 11, "Other deductions".
EXAMPLES:
•	 Taxes on rental property are deducted
from rents and royalties, line 4.
	
• State income taxes, fiduciary fees,
attorney fees and accountant fees
are included as other deductions,
line 11.
•	 Charitable deductions arising from
a specific type of income such as
capital gains are subtracted from
profit or loss from the sale or exchange of assets, line 5. If it is a
charitable deduction arising from
general income, it is subtracted on
line 11.
	
• Income distribution deductions
should be subtracted from either
dividends, interest or profit or loss
from the sale or exchange of assets
(capital gains) according to the allocations on federal Form 1041,
Schedule K-1. Other taxable income
distributions on Schedule K-1 are
included in the deductions on line
11. Amounts for depreciation and
depletion from Schedule K-1 are
subtracted from the type of income
to which they apply, lines 3-7.
•	 Dividend and interest exclusions are
www.tax.newmexico.gov

subtracted from gross dividends,
line 1, and gross interest, line 2.
Column 3, Net: The net amounts in this
column equal column 1 less column 2.
Column 4, Allocation to New Mexico:
Use this column to allocate net income
to New Mexico according to the following line instructions. The amount in
column 4 cannot be greater than the
amount in column 3.
______________________________
FORM FID-B, SCHEDULE 1
LINE INSTRUCTIONS
______________________________
NOTE: If you have a net operating loss
or net operating loss carryforward, attach a separate statement identifying
the name and operating location of the
business or property creating the loss,
and a complete copy of your federal
tax return.
Lines 1 and 2. Dividends and Interest. Dividend and interest income is
allocated in column 4 to New Mexico
if the estate or trust is domiciled in
New Mexico.
Line 3. Income From Other Fiduciaries, S Corporations, Partnerships
and Limited Liability Entities: An
estate or trust receiving income from
another estate, trust, or other passthrough entity that allocated and
apportioned its New Mexico income
must obtain copies of all allocation and
apportionment schedules. The income
from these sources must be allocated
and apportioned in the same way each
estate, trust, or other pass-through
entity allocated and apportioned its
income. Enter the amount of income
allocated or apportioned in column 4.
Example: X, a New Mexico trust,
reports $4,000 of net income as its
distributed share from a partnership.
Since the partnership allocated and apportioned 50% of its taxable income to
New Mexico, the fiduciary will allocate
50% of the $4,000 amount, or $2,000,
to New Mexico in column 4.
Line 4. Rents and Royalties. Allocate
to New Mexico in column 4 the following
rent and royalty income:
•	 from real property in New Mexico,
•	 from tangible personal property
FID-1					

•

	

located or used in New Mexico, or
from intangibles used in New
Mexico.

Trusts or estates that are domiciled in
New Mexico and receive income from
real property, tangible personal property or intangibles located or used in
New Mexico (including rents and royalties from oil and gas interests) must
allocate that income to New Mexico in
column 4. Intangibles are copyrights,
patents, franchises, trademarks and
licenses.
In addition to the above, trusts or estates domiciled in New Mexico must
allocate income from intangible and
tangible personal property used in
another state if the estate or trust is
not subject to tax in the other state.
A patent is used in New Mexico to the
extent it is employed in production,
fabrication, manufacturing or other
processing in New Mexico or when a
patented product is produced in New
Mexico.
A copyright is used in New Mexico
when the printing or other production
is accomplished in New Mexico.

Line 5. Profit or Loss From the Sale
or Exchange of Assets. Allocate to
New Mexico in column 4 profits or
losses from the sale or exchange of:
•	 Real property in New Mexico,
•	 Tangible personal property located
in New Mexico at the time it was
sold,
•	 Tangible personal property if the
estate or trust is domiciled in New
Mexico and the gain was not taxable in the state where the tangible
personal property was located,
	
• Intangible personal property if the
estate or trust is domiciled in New
Mexico.
Line 6. Net Business and Farm Income. An estate or trust reporting business and farm income earned solely
within New Mexico enters in column 4
the entire amount of net income from
column 3. If the business and farm
income is from activities within and outside New Mexico, complete lines 1-5
on FID-B, Schedule 2 to determine
the percentage of income apportionable to New Mexico.

If the fiduciary’s records do not reflect
the extent to which tangible personal
property is used within New Mexico,
use the following calculation:

Calculate the business and farm income apportioned to New Mexico by
multiplying the amount of net business
and farm income in column 3, line 6,
by the average percent from line 5 of
FID-B, Schedule 2.

Compute the percentage of time the
property was located in New Mexico
during the tax year by dividing the number of days the property was physically
located in New Mexico during the rental
or royalty period by the total number
of days the property was physically
located everywhere during the rental
or royalty period.

Separate Accounting Method for
Business Income. The separate accounting method may not be used by
any business. Businesses beginning
before January 1, 1991 who elected
the separate accounting method were
required to elect another method for
taxable years beginning on or after
January 1, 1995.

Multiply the net rents or royalties received for the taxable year by the percentage calculated above. The result is
the amount of rental or royalty income
allocable to New Mexico.

Line 7 - Other Income. All income
from sources other than those already
described is allocated to New Mexico in
column 4 if the estate or trust is domiciled in New Mexico. Attach a schedule
of other income.

If the physical location of the tangible
personal property during the rental or
royalty period is unknown or unascertainable, enter the amount of rental or
royalty income from property delivered
to a lessee in New Mexico.

If the estate or trust is not domiciled in
New Mexico, other income is allocated
to New Mexico when it is from transacting business in, into or from New Mexico
or when income is received from prop-

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