Do I need to report my out-of-state income?

Yes, you are required to report your out-of-state income to the New Mexico Taxation and Revenue Department. New Mexico follows the principle of "global income," meaning that residents must report all income earned from both in-state and out-of-state sources. This includes wages, self-employment earnings, rental income, business profits, and any other type of income earned outside of New Mexico. Failure to report out-of-state income can lead to penalties and potential audits. To accurately report your out-of-state income, you should keep detailed records, including pay stubs, 1099 forms, and any relevant financial statements. It is recommended to consult a tax professional or refer to the New Mexico Taxation and Revenue Department's guidelines for more specific information regarding reporting requirements for out-of-state income.