Drake Tax - NM - EF Message 0064

Taxpayers that are required to file a part-year/nonresident/first-year resident NM PIT-1 return, that also have business income reported on a federal Schedule C or Schedule F, are required to complete the second page of the NM Schedule PIT-B, or Schedule of New Mexico Allocation and Apportionment of Income. This is to prevent NM reject code 140.

To clear EF Message 0064, go to States > New Mexico. On the General tab, go to screen B2. Indicate the type and instance of the business or farm schedule that you wish to tie this screen together with, via the For and Multi-form Code fields at the top of the screen. You will also want to key in the entity’s CRS-ID, if assigned.

Fill in the relevant information from here, including the figures for the property and payroll factors. Per the instructions for Schedule PIT-B, New Mexico typically uses a three-factor formula for all taxpayers, though there are exceptions to this rule. For more information on if the taxpayer qualifies for a different apportionment formula (such as the single sales factor), refer to the Schedule PIT-B instructions for line 8, located on page 7.

As the note mentions at the bottom of the data entry screen, you will need a separate screen completed for each business and farm activity entered for federal purposes.