NMSA 1978, § 7-2-37 — 7-2-37

Deduction; unreimbursed or uncompensated medical care
expenses.

# A.

Prior to January 1, 2025, a taxpayer may claim a deduction from net income in
an amount determined pursuant to Subsection B of this section for medical care
expenses paid during the taxable year for medical care of the taxpayer, the taxpayer's
spouse or a dependent if the expenses are not reimbursed or compensated for by
insurance or otherwise and have not been included in the taxpayer's itemized
deductions, as defined in Section 63 of the Internal Revenue Code, for the taxable year.

# B.

The deduction provided in Subsection A of this section may be claimed in an
amount equal to the following percentage of medical care expenses paid during the
taxable year based on the taxpayer's filing status and adjusted gross income as follows:
(1) for surviving spouses and married individuals filing joint returns:
If adjusted gross income is:
The following percent of
medical care expenses
paid may be deducted:
Not over $30,000 25 percent
More than $30,000 but not more than
$70,000
15 percent
Over $70,000 10 percent;
(2) for single individuals and married individuals filing separate returns:
If adjusted gross income is:
The following percent of
medical care expenses
paid may be deducted:
Not over $15,000 25 percent
More than $15,000 but not more than
$35,000
15 percent
Over $35,000 10 percent; and
(3) for heads of household:
If adjusted gross income is:
The following percent of
medical care expenses
paid may be deducted:
Not over $20,000 25 percent
More than $20,000 but not more than
$50,000
15 percent
Over $50,000 10 percent.

# C.

As used in this section:
(1) "dependent" means "dependent" as defined in Section 152 of the Internal
Revenue Code;
(2) "health care facility" means a hospital, outpatient facility, diagnostic and
treatment center, rehabilitation center, free-standing hospice or other similar facility at
which medical care is provided;
(3) "medical care" means the diagnosis, cure, mitigation, treatment or
prevention of disease or for the purpose of affecting any structure or function of the
body;
(4) "medical care expenses" means amounts paid for:
(a) the diagnosis, cure, mitigation, treatment or prevention of disease or for
the purpose of affecting any structure or function of the body, excluding cosmetic
surgery, if provided by a physician or in a health care facility;
(b) prescribed drugs or insulin;
(c) qualified long-term care services as defined in Section 7702B(c) of the
Internal Revenue Code;
(d) insurance covering medical care, including amounts paid as premiums
under Part B of Title 18 of the Social Security Act or for a qualified long-term care
insurance contract defined in Section 7702B(b) of the Internal Revenue Code, if the
insurance or other amount is paid from income included in the taxpayer's adjusted gross
income for the taxable year;
(e) nursing services, regardless of where the services are rendered, if
provided by a practical nurse or a professional nurse licensed to practice in the state
pursuant to the Nursing Practice Act [Chapter 61, Article 3 NMSA 1978];
(f) specialized treatment or the use of special therapeutic devices if the
treatment or device is prescribed by a physician and the patient can show that the
expense was incurred primarily for the prevention or alleviation of a physical or mental
defect or illness; and
(g) care in an institution other than a hospital, such as a sanitarium or rest
home, if the principal reason for the presence of the person in the institution is to
receive the medical care available; provided that if the meals and lodging are furnished
as a necessary part of such care, the cost of the meals and lodging are "medical care
expenses";
(5) "physician" means a medical doctor, osteopathic physician, dentist,
podiatrist, chiropractic physician or psychologist licensed or certified to practice in New
Mexico; and
(6) "prescribed drug" means a drug or biological that requires a prescription of
a physician for its use by an individual.