Arizona News

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:

Conformity – – –
Conformity did not impact the ability for taxpayers to claim the credits for donating to qualified charitable organizations, qualified foster care charitable organizations, public schools or school tuition organizations. Taxpayers that itemize deductions, start with the federal itemized deductions and then make various Arizona adjustments including deducting medical expenses to the extent not already included in the federal itemized deductions. Arizona Revised Statutes section 43-1042(B) still provides that Arizona taxpayers that itemize may deduct 100% of their medical expenses. The withholding percentages will not change for the tax year 2019.
Power of Attorney – – –
In discussion on how to improve form intake, turnaround time and training for staff.
Practitioner Phone Number – – –
Seeing if we can get this reinstated.
Corporate E-File – – –
Taxpayers, CPA’s, Paid Preparers, etc. will need to verify with their software companies what forms those third party software companies support. Click the link below to see the list of Corporate forms that will be available to E-filed.

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.