Determine your “required annual payment.” The required annual payment for tax year 2010 is the lesser of:
90% of the current year, or the 2010 tax liability, or
100% of the previous year, or the 2009 tax liability.
For purposes of determining the required annual payment, tax liability equals the Net New Mexico Personal Income Tax due on the return less New Mexico rebates and credits. You may not subtract estimated payments and income tax withheld from Net New Mexico Personal Income Tax in this calculation.