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. Generally income from community property is divided equally between both spouses.
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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”.
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 |
For Arizona filing purposes, figure your gross income the same as you would figure your gross income for federal income tax filing purposes. Then, you should exclude income Arizona law does not tax.Income Arizona law does not tax includes:
- Interest from U.S. Government obligations
- Social security retirement benefits received under Title II of the Social Security Act
- Benefits received under the Railroad Retirement Act
- Active duty military pay
- Pay received for active service as a reservist or a National Guard member.
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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 that is taxable for federal purposes will be taxable for Arizona purposes. However, there is a subtraction, of up to $2,500, for pension income received from the State of Arizona and its political subdivisions or from U.S. government service, including the U.S. military.
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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, you may be able to claim a credit for taxes paid to that other 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 on the same income, you may be eligible for a tax credit. For more information, see Arizona Form 309.
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What are the income tax rates for Arizona?
The Arizona individual income tax is imposed on Arizona taxable income and the rates are as follows:
For a single individual or a married person filing separately:
If taxable income is: The tax is:
$0 - $10,000 2.59% of taxable income
$10,001 - $25,000 $259, plus 2.88% of the excess over $10,000
$25,001 - $50,000 $691, plus 3.36% of the excess over $25,000
$50,001 - $150,000 $1,531, plus 4.24% of the excess over $50,000
$150,001 and over $5,771, plus 4.54% of the excess over $150,000
For a married couple filing a joint return or a single person who is a head of a household:
If taxable income is: The tax is:
$0 - $20,000 2.59% of taxable income
$20,001 - $50,000 $518, plus 2.88% of the excess over $20,000
$50,001 - $100,000 $1,382, plus 3.36% of the excess over $50,000
$100,001 -$300,000 $3,062, plus 4.24% of the excess over $100,000
$300,001 and over $11,542, plus 4.54% of the excess over $300,000
What are the withholding rates for Arizona?
Arizona withholding is required from income received for services performed in Arizona. The Arizona rates are a percentage of federal income tax withheld. The minimum rate is 10% for employees whose annual compensation is less than $15,000. For employees whose compensation is $15,000 or more, the minimum rate is 19% of federal income tax withheld. An employee may also elect a higher percentage of withholding (19%, 23%, 25%, 31%, or 37%). Employees may elect 0% withholding if they had no Arizona tax liability in the prior taxable year and expect to have no state tax liability for the current taxable year.
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Does Arizona have a standard deduction?
A person may take a standard deduction or the person may itemize deductions. The standard deduction is indexed annually for inflation.
• For 2008, the standard deduction for a single or married person who files a separate return is $4,521.
• For 2008, the standard deduction for a head of household or a married couple who file a joint return is $9,042.
A person may claim itemized deductions on the 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 personal exemptions for Arizona?
The amount you may claim as a personal exemption depends on your filing status. The personal 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 claiming at least one dependent is $6,300.
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Are there additional exemptions available for the elderly or the blind?
A taxpayer may 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
What are the dependent exemptions for Arizona?
Arizona allows an exemption of $2,300 for each of the following:
- A person that qualifies as your dependent on your federal return.
- A stillborn child if the following apply
- The stillbirth occurred during the taxable year.
- You received a certificate of birth resulting in stillbirth from the Arizona Department of Health Services.
- The child would have otherwise been a member of your household.
A taxpayer may also claim an exemption of $2,300 for each person who is age 65 or over (related to you or not) that does not qualify as your dependent on your federal return, but one of the following applies.
- During the tax year, you paid more than one-fourth of the cost of keeping this person in an Arizona nursing care institution, an Arizona residential care institution, or an Arizona assisted living facility. Your cost must be more than $800.
- During the tax year, you paid more than $800 for either Arizona home health care or other medical costs for the person.
An Arizona resident may claim an exemption of $10,000 for his or her parent, grand parent or great grand parent if all of the following apply:
- The parent or grand parent lived in the taxpayer’s principal residence for the entire taxable year.
- The taxpayer paid more than one-half of the support and maintenance costs of the parent or grand parent during the taxable year.
- The parent or grand parent was 65 years old or older during the tax year.
- The parent or grand parent required assistance with activities of daily living, like getting in and out of bed or chairs,
walking around, going outdoors, using the toilet, bathing, shaving, brushing teeth, combing hair, dressing, medicating or feeding.
Does Arizona have sales tax?
Arizona Transaction Privilege Tax (sales) and Use tax rates generally are 5.6%. Currently, all fifteen counties levy a tax. County rates range from .5% to 1.125%. The state rate on transient lodging (hotel/motel) is 5.5%. 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. City rates range from 1% to 4.25%.
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Can I deduct moving expenses if I am moving into Arizona?
For Arizona income tax purposes, if a taxpayer changes from a nonresident to a resident during the taxable year, the taxpayer’s Arizona taxable income for that year must include all deductions realized or recognized during the period the individual was a resident. Moving expenses are realized after the move is complete. Therefore, moving expenses which are deductible under federal law (deducted in computing federal adjusted gross income), and are incurred to move into Arizona by an individual who is establishing Arizona residency are deductible on the Arizona income tax return. Moving expenses incurred to move from Arizona by an individual who is abandoning Arizona residence or incurred by a nonresident to move between two locations are not deductible.
I sold my home. Do I have to report this sale on my income tax return?
The starting point for the Arizona income tax computation for a resident individual is the federal adjusted gross income. This amount is then subject to certain additions and subtractions to arrive at Arizona taxable income. There is no specific treatment of gain realized from the sale of a personal residence in the Arizona statutes. Therefore, to the extent the gain is excluded from federal adjusted gross income, it will likewise be excluded from Arizona gross income and not subject to Arizona income tax. However, to the extent the gain is included in federal adjusted gross income; it will likewise be included in Arizona gross income and subject to Arizona income tax.
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.
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