ALBUQUERQUE, N.M. – New Mexicans can benefit from three major tax deductions this year, according to David Hicks from Oakmont Advisory Group.

Hicks explained that tips are now deductible for waitstaff and valets, with the IRS expecting 5 to 10 million people to benefit from an average deduction of $1,400. Additionally, overtime pay for first responders and nurses working over 40 hours can also be deducted, with income limits set at $12,500 for single taxpayers and $25,000 for married couples filing jointly.

Interest on auto loans is another new deduction, but it applies only to brand-new cars assembled in the U.S., allowing up to $10,000 in interest deductions.

“One of the biggest ones that we see for families here in New Mexico is not taking advantage of the New Mexico tax credit,” Hicks said, noting the federal tax credit of $2,200 per child and up to $600 on the state side.

Hicks also highlighted a bonus deduction for seniors over 65, which adds $6,000 per person to their standard deduction. He shared a story of a client who received a tax refund for the first time in 15 years due to these deductions.

With five weeks until the April 15 tax deadline, Hicks advised gathering all tax documents, including W-2s and 1099s, and reviewing last year’s filings as a blueprint. He emphasized the importance of being aware of these deductions to maximize refunds.