New Mexico Military Spouse Withholding Tax Exemption Statement

Military Spouse Withholding Tax Exemption Statement
Form RPD-41348
RPD-41348
03/15/2019

New Mexico Taxation and Revenue Department

Military Spouse Withholding Tax Exemption Statement

Effective date of this statement. __________________________________________________

A military servicemember’s non-resident spouse, eligible to claim an exempt New Mexico withholding status based on
the Veterans Benefits and Transition Act of 2018, must annually submit Form RPD-41348 to an employer or payor
responsible for withholding New Mexico tax. Complete a new statement if eligibility changes. All parties involved must
keep a copy of this statement in their records. The employer or payor accepting this form must mail a copy of the statement and verification of eligibility to New Mexico Taxation and Revenue Department, P.O. Box 25128, Santa Fe, New
Mexico 87504-5128. For assistance, contact (505) 827-0832.
1. Taxable Year

2. Employer or payor’s name

3. Employee or payee’s name

4. Employee or payee’s social security number

5. Servicemember’s name

6. Servicemember’s social security number

7a. Street address where you reside (city, state, ZIP code)

7b. Check if you and your spouse
reside at the same address

8a. Name of military servicemember’s permanent duty station (city, state, ZIP code)

8b. Check if foreign
address

Statement of employee or payee.
9.

The employee or payee’s, for tax purposes,
has declared domicile in the state of:

10. The servicemember, for tax purposes, has
declared domicile in the state of:
11. The servicemember is currently assigned
military duty station in New Mexico.

Check one

YES

NO

Review the eligibility requirements in the instructions and check the statement that applies.
I am eligible for the exemption from New Mexico Income Tax Withholding requirements because I meet the requirements set forth under the Servicemembers Civil Relief Act, as amended by
the Veterans Benefits and Transition Act of 2018 (P.L. 115-407).
I am NOT eligible for the exemption from New Mexico Income Tax Withholding requirements
because I do not or no longer meet the requirements set forth under the Servicemembers Civil
Relief Act, as amended by the Veterans Benefits and Transition Act of 2018 (P.L. 115-407).
Signature of employee or payee - Under penalty of perjury, I certify that I have examined this statement, including accompanying attachments, and to the best of my knowledge and belief it is true, correct
and complete.
Signature of employee or payee

Date

Phone number

Signature of employer or payor - Under penalty of perjury, I certify that I have examined this statement, including accompanying attachments, and to the best of my knowledge and belief it is true, correct
and complete.
Signature of employer or payor

Date

Phone number

RPD-41348
03/15/2019

New Mexico Taxation and Revenue Department

Military Spouse Withholding Tax Exemption Statement
Instructions
Page 1 of 4

LINE INSTRUCTIONS FOR FORM RPD-41348
Read pages 2 through 4 of these instructions before completing the line instructions. The employee or
payee (military non-resident spouse) begins by entering the effective date of the statement at the top of
the page then completes lines 1 through 11.
1.	 Taxable Year: Enter the tax year that this form applies to. Must submit a new form each tax year.
2.	 Employer or payor’s name: Enter the name of the military spouse’s place of employment.	
3.	 Employee or payee’s name: Enter the name of the military spouse.
4.	 Employee or payee’s social security number: Enter the social security number of the military spouse.
5.	 Servicemember’s name: Enter the name of the military servicemember.
6.	 Servicemember’s social security number: Enter the social security number of the military service
	member.
7a.Street address where you reside (city, state, ZIP code): Enter the address where the military
	 spouse resides.This does not have to be the same residence as the military servicemember.
7b.Check the box if the military spouse and military servicemember reside at the same address.
8a.Name of the military servicemember’s permanent duty station (city, state, ZIP code): Enter
	 the duty location or official station of the military servicemember. If this is a foreign address, write it in
	 the standards that U.S. Postal Service has set for international mail and addresses.
8b.Check the box if the military servicemember’s permanent duty station is in a foreign location.
9.	 Enter the declared domicile state that the military spouse has declared for tax purposes. This does not
	 have to be the same declared domicile state as the military servicemember. See “About Domicile” on
	 page 3 of these instructions.
10.Enter the declared domicile state that the military servicemember has declared for tax purposes.
11.	Check either YES or NO, if the military servicemember’s duty station is currently assigned in New
	 Mexico.
REVIEW AND SIGN
The employee or payee must review the “Eligibility Requirements” listed on page 2 of these instructions. Check
either, I am eligible for the exemption OR I am NOT eligible for the exemption. Both the employee
or payee and employer or payor must sign and date the form. Include phone numbers for both parties.
VERIFY ELIGIBILITY OF MILITARY SPOUSE AND SUBMIT
The employee or payee reviews “Verification of Eligibility” beginning on page 3 of these instructions and
submits a copy of one document from each of the documentation groups to the employer or payor. The
employer or payor reviews the eligibility documentation for completion then submits it and the form to the
address listed at the top of the form.
IMPORTANT: All parties involved must keep a copy for their records.

RPD-41348
03/15/2019

New Mexico Taxation and Revenue Department

Military Spouse Withholding Tax Exemption Statement
Instructions
Page 2 of 4

Guidance For Employers and Non-resident Military Spouses
Claiming Relief From New Mexico Income Tax Withholding Requirements
Eligibility Requirements
Beginning with the tax year 2018, a military servicemember’s spouse who moves to New Mexico solely to
be with their spouse who is in New Mexico because of military orders, may keep their out-of-state residency
status. They may source their non-military wages, salaries, tips and other income from services performed
to their chosen state of domicile instead of New Mexico where the income is earned. For tax purposes, this
can be either the domicile state that the servicemember claims or the state in which the servicemember’s
spouse has established domicile.
Certain
•	 The
•	 The
•	 The

restrictions apply:
servicemember must have declared domicile in another state.
servicemember must be in New Mexico in compliance with military orders.
servicemember’s spouse must be in New Mexico solely to be with their spouse.

Under the following conditions the military servicemember’s spouse is not eligible or ceases to be eligible
for relief:
•	 Servicemember leaves the service.
•	 Divorce.
•	 The servicemember’s spouse commits an action that clearly establishes New Mexico as the state of domicile. Examples: filing a court action, such as a claim for divorce; accepting in-state tuition; applying
for certain state benefits, such as filing a claim for a tax credit only available to persons domiciled in New
Mexico.
NOTE: If the servicemember is stationed overseas, the spouse still qualifies for relief. Deployment location
does not change the domicile of a servicemember.
Reporting Requirements
A military servicemember’s non-resident spouse who qualifies to claim an exempt New Mexico withholding
status, must submit to the employer or payor responsible for withholding New Mexico income tax, Form
RPD-41348. The employer or payor must keep the document on record. The employee or payee must also
keep a copy of Form RPD-41348.
If the military servicemember spouse’s situation changes after submitting Form RPD-41348, a new form
must be completed and provided to the employer or payee. Form RPD-41348 can either establish that the
employee or payee qualifies or establish that the employee or payee no longer qualifies. Form RPD-41348
must be complete and signed by the military servicemember’s spouse and the employer or payor.
•	 If the servicemember’s non-resident spouse is claiming an exempt New Mexico withholding status, the
employer or payor must verify eligibility. See “Verification of Eligibility” on page 2 of 3 of these instructions. Once verified, the income and withholding is reported on federal forms W2 or 1099 to the state of
domicile declared by the servicemember’s spouse.
•	 If the servicemember’s spouse does not qualify, or ceases to qualify, then the income and withholding
from employment or services performed in New Mexico is reported on federal forms W2 or 1099 to New
Mexico.
Form RPD-41348 must be completed for every tax year that the employee or payee wishes to claim exempt status. The statement for exempt status applies only for one tax year, and should be submitted to
the employer or payor prior to beginning employment or performing services - and by the first day of each
subsequent tax year.

RPD-41348
03/15/2019

New Mexico Taxation and Revenue Department

Military Spouse Withholding Tax Exemption Statement
Instructions
Page 3 of 4

If the qualifying military servicemember’s spouse has had New Mexico tax withheld from their income, they
may obtain a refund of the tax withheld by filing a New Mexico personal income tax return. The military
servicemember’s spouse may be asked to provide a copy of Form RPD-41348, and other proof showing eligibility. Form RPD-41348 and verification does not need to be submitted at the time the return is filed.
NOTE: The employer is liable for amounts required to be deducted and withheld by the Withholding Tax Act
[7-3-1 NMSA 1978] unless the failure to withhold was due to reasonable cause. Compliance with Department instructions on Form RPD-41348, for allowing exempt status for purposes of withholding New Mexico
income tax, is evidence of reasonable cause.
About Domicile
Your domicile is the place you intend as your permanent home. It is the state where your permanent home
is located and where you intend to return whenever you are away (as on vacation, business assignment,
educational leave or military assignment). You can have only one domicile.
A change of domicile must be clear and convincing. Easily controlled factors are NOT the primary factors to
consider in deciding where you are domiciled. If you move to a new location but intend to stay there only for
a limited amount of time (no matter how long), your domicile state does not change. If you go to a foreign
country for a business or work assignment, or for study, research or any other purpose, your domicile state
does not change unless you show that you definitely do not intend to return.
Based on the Veterans Benefits and Transition Act of 2018 a servicemember’s spouse:
•	 Can choose their state of domicile, from either the state in which they have established domicile OR the
state in which the servicemember has established domicile.
•	 May inherit the domicile of a servicemember upon marriage.
•	 Does not have to show that domicile had been established in another state before moving into it.
•	 Does not have to live in a state before claiming it as domicile.
No single factor determines a person’s state of domicile. Carefully evaluate all factors before claiming or
changing domicile.
Verification of Eligibility
The employee or payee must provide at least one document from each of the three groups of verification to
the employer or payor, as verification of eligibility. The employer must keep a copy of the documentation in
its files.
Group 1 – Verification of Marriage
1.	 Employee’s Military ID card. The card should indicate that the employee is the spouse of the servicemember, and the card must be unexpired.
2.	 Marriage License.
Group 2 – Verification of Servicemember’s Domicile
1.	 Servicemember’s current Leave and Earnings Statement (LES). The LES has a box titled VHA ZIP
within the Pay Data line. This identifies the ZIP Code that is used in computing the Variable Housing Allowance (VHA) for the duty assignment of the servicemember.
2.	 Servicemember’s recent W-2. “State box” declares the state that servicemember has declared as a
tax domiciliary.

RPD-41348
03/15/2019

New Mexico Taxation and Revenue Department

Military Spouse Withholding Tax Exemption Statement
Instructions
Page 4 of 4

Group 3 – Verification of domicile for servicemember’s spouse.
Documents that a spouse may own that will show that the spouse was domiciled in another state.
The document must be issued to the spouse as a resident of the other state.
•	 Servicemember’s voters registration card
•	 Voters registration card for servicemember’s spouse
•	 Driver’s license
•	 Marriage license
•	 Children’s birth records
•	 Professional license
•	 Documentation showing that the spouse qualifies for in-state tuition
•	 Proof of employment
The employer must keep a copy of Form RPD-41348 and the documents provided by the servicemember’s
spouse for verification of eligibility in the employee’s personnel files.