Michael Miller


On February 4, 2021, the Department issued an assessment to the Taxpayer for personal income tax for tax year 2016. On February 26, 2021, the Taxpayer submitted a formal protest of the assessment. The Taxpayer, after having lived in New Mexico for many years, moved to Nevada on August 27, 2016. While living in Nevada the Taxpayer withdrew money from his retirement account. The Department assessed the Taxpayer because it had determined that he was a resident, as he had been physically present for over 185 days in New Mexico and therefore, based on statute, was domiciled in the state. The Taxpayer argued that since the retirement money was liquidated and paid to him while he was living in Nevada, he should not be taxed in New Mexico. Federal law prevents a state from taxing retirement income of an individual who is domiciled in another state. However, in this case, since the he was physically present over 185 days in the state he was actually domiciled in the New Mexico. Further, the federal law prevents another state from taxing the retirement income, but Nevada was not attempting to tax the retirement because it does not have income tax. This having been determined, the Hearing Officer denied the protest and ordered that the Taxpayer was liable for the assessment.