The New Mexico withholding tax return, Form TRD-41414, is the periodic return employers file with the Taxation and Revenue Department to report state income tax withheld from employee wages and to remit that tax. It runs ten lines, is due on the 25th of the month after each reporting period, and is filed through the state’s Taxpayer Access Point (TAP) portal.
What You Need Before You File
Two things have to be in place. First, a New Mexico Business Tax Identification Number (NMBTIN), issued by the Taxation and Revenue Department after you submit a business tax registration (Form ACD-31015) online, by mail, or in person. Registration covers wage withholding along with other tax programs and is free.
Second, a filing frequency. The department assigns you a schedule — monthly, quarterly, or another cadence — based on the size of your withholding liability. Larger withholders file more often. Your assigned frequency appears on your registration certificate and in your TAP account, and the department may adjust it if your liability changes materially.
Every form, schedule, and piece of correspondence you send to the department should carry your business name and NMBTIN at the top. On paper, use blue or black ink and leave inapplicable fields blank rather than striking through them.
Completing the TRD-41414 Line by Line
Most of the return is arithmetic on figures you already have from payroll.
Line 1 — Number of employees. The total count of employees you withheld New Mexico tax from during the filing period. Include only employees whose withholding you are paying with this return.
Line 2 — Gross New Mexico wages. The total gross wages paid to those employees during the period.
Line 3 — Total withholding tax. The total New Mexico wage withholding tax you are reporting for the period.
Line 4 — Business tax credits. Any business-related tax credits from Schedule CR, Line A. Attach Schedule CR if you claim credits on this line. The amount here cannot exceed Line 3.
Line 5 — Net withholding tax. Line 3 minus Line 4.
Line 6 — Penalty. If the return or payment is late, calculate 2% of the tax due for each month or partial month overdue, up to 20% of the tax due, with a minimum of five dollars.
Line 7 — Interest. Interest accrues daily at the rate the IRS sets for individual income tax underpayments under the Internal Revenue Code.
Line 8 — Total amount due. Lines 5, 6, and 7 added together.
Line 9 — Refundable tax credits. Refundable business-related tax credits from Schedule CR, Line B.
Line 10 — Overpayment. If Line 9 is greater than Line 8, or if you are filing an amended return that produces an overpayment, enter the difference here.
When the Return Is Due
Each TRD-41414 must be filed on or before the 25th of the month following the end of the reporting period. Tax withheld during a given month is due by the 25th of the next month. If the 25th falls on a weekend or a state, local, or national holiday, the due date moves to the next business day.
How to Submit the Return and Payment
The department wants this return filed electronically through the New Mexico Taxpayer Access Point. Go to the TAP website, click “Create a Logon,” and set up a business account. From there you can file returns, amend prior returns, and pay tax electronically. TAP issues a confirmation on successful submission; that confirmation is your proof of timely filing.
Wage withholding is subject to an e-file and e-pay mandate. If you fall under it, paper is not an option and you must use TAP or another department-approved electronic method.
Employers who still qualify to file on paper should mail the completed TRD-41414 and any payment to:
Wage Withholding Tax Correspondence
Taxation and Revenue Department
P.O. Box 25128
Santa Fe, NM 87504-5128
Keep a copy of every return you file, electronic or paper.
Penalty and Interest If You File or Pay Late
Late filing or late payment triggers a penalty of 2% of the unpaid tax for each month or partial month the return or payment is overdue. Any fraction of a month counts as a full month. The penalty is capped at 20% of the tax due, with a minimum of five dollars. The five-dollar minimum does not apply to taxes under the Income Tax Act or the Corporate Income and Franchise Tax Act, but it does apply to wage withholding.
Interest runs separately and accrues daily at the IRS underpayment rate set under the Internal Revenue Code. That rate adjusts quarterly with the federal short-term rate, so check the current IRS underpayment rate when you calculate Line 7.
This penalty covers failures due to negligence or disregard of department rules. Intentional evasion is handled under separate provisions of the Tax Administration Act.
Year-End Reconciliation: Form RPD-41072
After the calendar year closes, employers reconcile what they reported on employees’ W-2s against what they actually paid the state on their TRD-41414 returns. Form RPD-41072, the Annual Summary of Withholding Tax, is the reconciliation form. When required, it is due on or before January 31 of the year following the year the tax was withheld.
The form has four lines: total number of W-2s (or W-2G or 1099-R forms) issued showing New Mexico withholding; total New Mexico income tax withheld for the year as shown on those federal forms; total New Mexico income tax reported to the state on TRD-41414 returns during the year; and the difference between the second and third figures.
If those totals don’t match, you fix it by filing amended TRD-41414s for the specific periods where the mismatch occurred. The RPD-41072 itself cannot be used to claim a refund.
You do not have to file RPD-41072 if you file a wage and contribution report (ES903) with the New Mexico Workforce Solutions Department, file Form TRD-31109 with the Taxation and Revenue Department, or submit your information returns electronically or on magnetic media as described in the department’s Publication FYI-330. Copies of W-2s and other income and withholding information returns are generally due to the department by the last day of February following the tax year.