Letter To The Editor: Eliminate Unfair Double Taxation Of Our Social Security Benefits

By GREG and KATHIE LENNES
Las Cruces

Sorry – we disagree with former Sen. Fred Harris about the double taxation of social security (link).

We are not wealthy at all living on a very limited income with medical bills galore. Yet we are unnecessarily taxed hundreds of dollars more by the state. We make out our own taxes.

We say get rid of this idiotic tax.

We are on a limited income and not wealthy. We have been mad as hell about the double taxation on our Social Security benefits for years. This grievous betrayal of New Mexicans occurred in 1990 when the New Mexico state legislature passed and the then Gov. Garrey Carruthers signed into law obnoxious legislation basically double-taxing all New Mexico residents 65 or older who receive Social Security.

This tax is a form of double taxation, since New Mexicans pay income tax on the money that is deducted from their paychecks for Social Security, and then they are taxed again on the benefits they receive.

Social Security is arguably one of the most important Federal social programs in this state. More than 225,000 residents each month receive a Social Security check. Yet in 1990 the New Mexico state legislature and the Governor double-taxed retirees to feed the state coffers. Many reside in nursing homes.

Only 11 states allow this hideous double taxation of social security.

New Mexico has the worst tax costing the average Social Security recipients hundreds of dollars per year. The state legislature and Gov. Michelle Lujan Grisham need to work together in this legislative session to REPEAL NOW this grossly unfair tax. It is the least our leaders can do for our seniors who are bearing the brunt of the COVID-19 pandemic and its economic devastation.

P.S.

OK – Here we go on the tax calculation that most state legislators don’t understand. The IRS taxes about 50 percent of our Social Security benefits. This 50 percent is added to the total Gross Adjusted Income (6b) on the Federal Income form. There is a separate Federal worksheet for this to determine the actual amount.

This Gross Adjusted Income is put on the New Mexico tax form and is taxed. There is no adjustment for SS income – none. That includes Line 15! To us with limited income and many medical bills we have been losing hundreds of dollars each year because of unfair DOUBLE TAXATION.

New Mexico Voices for Children did not know this and stated: “If there’s no extra exemption at the state level, then we need to change our fact sheet! I will look into that, so thanks for that info!”

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