Is Arizona a community property State?
Arizona Revised Statutes (A.R.S.) § 25-211 provides that all property acquired by either husband or wife during marriage is community property, except that which is acquired by gift or by inheritance.
Back to Top
What are the filing requirements for Arizona?
The filing requirements are explained at the beginning of the instructions on all Arizona income tax returns. All tax forms can be located on our website under the category “Forms and Instructions”. For Arizona purposes, your Federal Adjusted Gross Income (FAGI) is considered your Arizona gross income.
Who must file in Arizona?
|
You must file if you are:
|
AND your gross income is at least: |
OR your Arizona Adjusted Gross Income is at least: |
| Single |
$15,000 |
$5,500 |
| Married filing joint |
$15,000 |
$11,000 |
| Married filing separate |
$15,000 |
$5,500 |
| Head of household |
$15,000 |
$5,500 |
Back to Top
Is my retirement from another state taxed in Arizona?
Yes. Arizona will tax your retirement from another state.
If I have income from another state is it taxable in Arizona?
Yes, an Arizona resident is subject to tax on all income wherever derived from.
What portion of my pension is taxable?
As a general rule, the same portion of your pension is taxable for Arizona purposes as is taxable for federal purposes. However, there is a special subtraction, not to exceed a total of $2,500, for pensions from the State of Arizona and its political subdivisions or from U.S. government service, including the U.S. military
Back to Top
What criteria must be met to qualify as an Arizona resident?
Whether one is considered an Arizona resident depends on the facts and circumstances of each case. For guidance in determining whether or not you are an Arizona resident, please refer to Arizona Individual Income Tax Procedure ITP 92-1.
Why do I have to pay taxes on income I did not earn in Arizona?
Arizona law provides that Arizona residents are taxable on the same income that they report for federal income tax purposes, subject only to the specific modifications allowed under Arizona tax law. If you are taxed on income earned in another State by both Arizona and the other State, the credit for taxes paid to another State may be available to you if you filed a tax return with another State. See the Form 309 instructions for additional information.
If I file as a part-year resident, am I being taxed twice on my income by Arizona and the other State?
As a part-year resident, you are subject to Arizona tax on any income you earned in Arizona while an Arizona resident and any income you earned from an Arizona source before moving to (or after leaving) the State. If you are subject to tax by both Arizona and another State or country on the same income, you may be eligible for a tax credit. For more information, see Arizona Form 309.
Back to Top
What are the income tax rates for Arizona?
Arizona imposes its income tax on residents and on non-residents that earn income in Arizona. The starting point for the income tax computation for Arizona residents is the Federal Adjusted Gross Income (FAGI or Arizona Gross Income). This amount is then subject to certain additions and subtractions to arrive at Arizona taxable income. Since Arizona starts with the FAGI, any income that is taxable for federal purposes will also be subject to Arizona tax unless such income is specifically excludable under Arizona law
What are the withholding rates for Arizona?
10% (only available to employees earning less than $15,000)
19%
23%
25%
31%
37%
Senate Bill 1415 amended Arizona Revised Statutes (ARS) § 43-301 to change the Arizona withholding percentage options. These changes apply to withholding from compensation, pensions and annuities paid from and after December 31, 2004. For employees earning less than $15,000 the lowest rate remained at 10%.
Back to Top
Does Arizona have a standard deduction?
A person may take a standard deduction or he or she may itemize deductions.
• The standard deduction for a single or married person who files a separate return is $4,050.
• The standard deduction for a head of household or a married couple who file a joint return is $8,100.
A person may claim itemized deductions on his or her Arizona return even if the person takes a standard deduction on the federal return. For the most part, a person may claim those deductions allowable as itemized deductions under the Internal Revenue Code.
What are the exemptions for Arizona?
The amount you may claim as a personal exemption depends on your filing status. The most common exemptions are as follows:
• The exemption for a single person is $2,100.
• The exemption for person who is an unmarried head of household or a married couple that claim no dependents is $4,200.
• The exemption for a married couple filing joint and claims at least one dependent is $6,300.
Back to Top
Are there additional exemptions available for the elderly?
A taxpayer may also claim an additional exemption for being blind or over age 65.
• The exemption for each taxpayer that is age 65 or over is $2,100.
• The exemption for each taxpayer that is partially or totally blind is $1,500.
• A taxpayer may also claim an exemption of $2,300 for each person that qualifies as a dependent on their federal tax return. Or, for a person over the age of 65 (related or not) and during the tax year you paid more than one-fourth of the cost to keep that person in an Arizona nursing or assisted living facility. Your cost must exceed $800. Or, you paid more than $800 for either
• An Arizona resident may claim an exemption of $10,000 for each of his or her parents or ancestors that qualify for this special exemption. The Form 140 instructions list the criteria for this exemption.
Does Arizona have sales tax?
Arizona Transaction Privilege Tax (sales) and Use tax rates generally are 6.3 percent. Currently, all fifteen counties levy a tax. The state rate on transient lodging (hotel/motel) is 7.27%. The state of Arizona does not levy a state tax on food for home consumption or on drugs prescribed by a licensed physician or dentist. However, some cities in Arizona do levy a tax on food for home consumption.
Back to Top
How do I report moving expenses?
Arizona Revised Statute (ARS) § 43-1042 provides for an itemized deduction for individual taxpayers in the amount allowable for the taxable year under the Internal Revenue Code. You can reference itemized deductions on the Internal Revenue Service website at www.irs.gov.
I sold my home. Do I have to report this sale on my income tax return?
Generally, if you meet the two tests below, you may be able to exclude a portion of the gain.
Test 1. You owned and used the home as your main home for 2 years or more during the 5-year period ending on the date you sold or exchanged your home.
Test 2. You have not sold or exchanged another main home during the 2-year period ending on the date of the sale or exchange of your home (not counting any sales or exchanges before May 7, 1997).
See IRS Publication 523, Selling Your Home, for details, including how to report any taxable gain on Schedule D, if:
• You do not meet one of the above two tests,
• You (or your spouse if married) used any part of the home for business or rental purposes after May 6, 1997, or
• Your gain exceeds your exclusion amount.
I’m only here on a temporary basis, am I required to file?
You have to file a tax return reporting any income earned in Arizona only if you exceed the amounts listed in the filing requirements stated in the Arizona income tax return instructions. If you do not exceed these requirements, you may want to file anyway to obtain a refund for any Arizona income tax that may have been withheld from your earnings.
