Updated July 17, 2021
As part of the Budget process during the summer of 2021, the Arizona legislature also made some significant changes to the Arizona Income tax laws, including:
- Retroactive to Jan 1, 2021, the full amount (instead of only $3500) of benefits, annuities and pensions received as retired or retainer pay of the uniformed services will be subtracted when computing Arizona AGI.
- For TY2021, the maximum aggregate individual tax rate is 4.5%.
- For tax years starting in Jan 1, 2022, the marginal tax rates have been lowered.
For more details and specifics, see:
- Summary of the SB1828 provided by AZ NATP member, Katie Gudgel.
- AZ Legislature summaries by the Senate and by the House
- The full text of SB1828
01/09/2021
During our Arizona Updates Webinar on January 7, 2021, Katie Gudgel highlighted several bills related to the preparation of individual and corporate income tax returns that were approved during 2020. Those included:
- SB 1021: Electronic Signatures
- SB 1348: Filing Requirements, Updates for expired provisions, Interaction of Charitable credits and deductions
- HB 2494 / SB 1296: Adopting IRS Conformity
- HB 2771: Business Credits
- SB 1131: Use of CPA
In addition, during 2020, the Arizona Department of Revenue published:
- GTP 20-01: Reviewing Paid Preparers
- ITP 20-01: Credit for Foreign Taxes Paid through Regulated Investment Companies
- GTN 20-03: Electronic Signatures
06/17/2019
During our Annual Conference, we had the participation of the Arizona Department of Revenue. Some questions and concerns arose during their presentation. Today we have received some answers and we are thrilled to share with our members:
01/17/2019
ADOR Notice: 2018 Standard Deductions, Exemption Amounts and Tax Brackets
The Arizona Department of Revenue today provided taxpayers with tax year 2018 annual inflation adjustments for Arizona standard deductions, personal exemptions, and the X & Y tax table. Tax year 2018 adjustments generally are used on tax returns filed in 2019.
2018 Arizona Standard Deduction, Personal Exemption, X & Y Tax Table
What are the 2018 Arizona standard deduction amounts?
For 2018, the Arizona standard deduction was indexed for inflation. The Arizona standard tax deduction amounts for taxpayers who do not itemize deductions are listed below.
Tax Year 2018 Standard Deduction Table | |
If your filing status is: | Amounts |
Single | $5,312 |
Married Filing Joint | $10,613 |
Married Filing Separate | $5,312 |
Head of Household | $10,613 |
What are the 2018 Arizona personal exemption amounts?
For 2018, the Arizona personal exemption amounts were adjusted for inflation. The Arizona personal exemption amounts for taxpayers are listed below.
Tax Year 2018 Personal Exemption Amounts | |
If your filing status is: | Amount |
Single | $2,200 |
Married Filing Joint and claiming no dependents | $4,400 |
Married Filing Joint and claiming at least one dependent excluding persons who did not qualify as a dependent on your federal return | $6,600 |
Head of Household and you are not married | $4,400 |
Head of Household and you are a married person who qualifies to file as head of household | $3,300, or complete Form 202 |
Married Filing Separate with neither spouse claiming any dependents | $2,200, or complete Form 202 |
Marred Filing Separate return with one spouse claiming at least one dependent excluding persons listed who did not qualify as a dependent on your federal return | $3,300, or complete Form 202 |
2018 Individual Income Tax Brackets
For 2018, the individual income tax brackets have been adjusted for inflation.
TABLE X – USE TABLE X IF YOUR FILING STATUS IS SINGLE OR MARRIED FILING SEPARATE | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
(a) | (b) | (c) | (d) | (e) | (f) | |||||
If taxable income from Form 140, line 46 is: | Enter the amount from Form 140, line 46 | Multiply the amount entered in column (b) by | Enter the result | Subtract | This is your tax. Round the difference and enter this amount on Form 140, line 47 | |||||
Over | But NOT over | |||||||||
0 | $10,602 | × | .0259 | = | − | 0.00 | = | |||
$10,602 | $26,501 | × | .0288 | = | − | $31.00 | = | |||
$26,501 | $53,000 | × | .0336 | = | − | $158.00 | = | |||
$53,000 | $158,996 | × | .0424 | = | − | $624.00 | = | |||
$158,996 | And over | × | .0454 | = | − | $1,101.00 | = |
TABLE Y – USE TABLE Y IF YOUR FILING STATUS IS MARRIED FILING JOINT OR HEAD OF HOUSEHOLD | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
(a) | (b) | (c) | (d) | (e) | (f) | |||||
If taxable income from Form 140, line 46 is: | Enter the amount from Form 140, line 46 | Multiply the amount entered in column (b) by | Enter the result | Subtract | This is your tax. Round the difference and enter this amount on Form 140, line 47 | |||||
Over | But NOT over | |||||||||
0 | $21,202 | × | .0259 | = | − | 0.00 | = | |||
$21,202 | $53,000 | × | .0288 | = | − | $61.00 | = | |||
$53,000 | $105,998 | × | .0336 | = | − | $316.00 | = | |||
$105,998 | $317,990 | × | .0424 | = | − | $1,249.00 | = | |||
$317,990 | And over | × | .0454 | = | − | $2,203.00 | = |
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Notice to Taxpayers Claiming Credits for Contributions
Credit For Contributions to Arizona Public Schools (Form 322)
For the purpose of claiming Arizona’s tax credit for contributions made or certain fees paid to a public school, the Arizona Department of Revenue now requires that taxpayers report the school’s County Code, Type Code, and District Code & Site Number (CTDS) number on the Arizona income tax return for any contributions or fees made on Form 322.
The CTDS is a nine (9) digit number that the Arizona Department of Education uses to identify Arizona public and charter schools.
To find the CTDS number for a public school in Arizona, please visit the Arizona Department of Education’s webpage at: http://www.ade.az.gov/edd or visit our website for a list.
Credits For Contributions to QCOs and QFCOs (Form 321 and Form 352)
Effective in 2018, the Arizona Department of Revenue has assigned a five (5) digit code number to identify each Qualifying Charitable Organization (QCO) and Qualifying Foster Care Charitable Organization (QFCO) for Arizona tax credit purposes. Taxpayers must use the “QCO Code” or “QFCO Code” of certified organizations to claim the tax credits for contributions QCOs or QFCOs. The department’s lists of qualifying charities include the code assigned to each organization and are available at azdor.gov/tax‐credits/contributions‐qcos‐and‐qfcos.