Arizona families have something to celebrate with the introduction of the Arizona Families Tax Rebate, a one-time payment designed to reward residents for their contributions to the state’s economic growth. As part of Governor Hobbs’s 2023 bipartisan budget, this rebate aims to provide up to $1,500 to qualifying families, serving as both a financial boost and a recognition of their vital role in Arizona’s prosperity.
Qualifying
To benefit from the Arizona Families Tax Rebate, residents must meet specific criteria. First, you must have filed a full-year Arizona resident personal income tax return for 2021. Additionally, your return must include at least one dependent tax credit claimed during that year.
Moreover, you must have filed as either the only taxpayer on a single, married filing separately, or head of household return, or as the principal taxpayer of a married filing jointly return. These filing statuses are crucial to ensure eligibility. Another important requirement is having at least $1 in Arizona personal income tax liability for 2021. Even if Arizona income tax credits wiped out your liability for that year, you could still qualify for the rebate if you meet the other criteria.
Calculating
The amount you receive from the Arizona Families Tax Rebate depends on the number and age of dependents claimed on your 2021 tax return. Specifically, taxpayers will receive $250 per dependent under age 17 and $100 per dependent age 17 or over. However, there is a cap: you can only claim up to three dependents, regardless of their age. This means the maximum rebate you can receive is $750 for single filers, heads of households, or married individuals filing separately, and $1,500 for joint filers.
For those who provided direct deposit details in their 2021 or 2022 returns, the Arizona Department of Revenue will issue the rebate via direct deposit. If you did not provide direct deposit information, you will receive a paper check at your last known address.
Impact
While the Arizona Families Tax Rebate is excluded from the calculation of Arizona state income taxes, it is considered taxable income by the Internal Revenue Service (IRS). This means you must include the rebate as part of your federal adjusted gross income (AGI) when filing your federal income tax return for 2023.
To assist with this reporting, the Arizona Department of Revenue will issue a Form 1099-MISC to rebate recipients by January 31 of the year following the rebate. Additionally, when completing your 2023 Arizona individual income tax return, you should deduct the rebate from your federal AGI. This ensures that the rebate does not impact your state tax obligations.
Claim
To make the most of the Arizona Families Tax Rebate, ensure that you meet the eligibility criteria and know the distribution process. You can visit the Arizona Department of Revenue’s official website at familyrebate.aztaxes.gov to verify your eligibility, check the status of your rebate, and get the latest updates. This website is a valuable resource for ensuring that you don’t miss out on this opportunity to improve your financial situation.
The Arizona Families Tax Rebate represents a significant investment in the state’s residents, with up to $1,500 in potential benefits for qualifying families. By staying informed and prepared, you can maximize the benefit from this initiative and secure the financial assistance you deserve.
FAQs
Who is eligible for the Arizona Families Tax Rebate?
Residents who filed a full-year Arizona personal income tax return for 2021 and claimed at least one dependent tax credit.
How much can I receive from the rebate?
You can receive up to $250 per dependent under 17 and $100 per dependent 17 or over, with a maximum of $1,500 for joint filers.
How will the rebate be paid out?
Rebates will be issued via direct deposit if you provided banking information, otherwise, by check to your last known address.
Is the rebate taxable?
Yes, the rebate must be included in your federal adjusted gross income for 2023.
Where can I check my eligibility and rebate status?
Visit the official website at familyrebate.aztaxes.gov for more information.
