Tax Insights

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Key changes to 2019 Arizona tax returns

tax reform TCJA, ADORTax season is upon us! Individual income tax filing began on January 27th for both state and federal. I am as excited to file a return this year as most are but there have been some changes this year that are good to know as a taxpayer. Below are five key Arizona tax changes.

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The changes for the 2019 tax year are:

  • This year the Arizona tax return will follow the federal standard deduction amounts of $12,200 for single/married filing separate, $18,350 for head of household and $24,400 for married filing joint.
  • The exemption amounts for personal and dependents were removed from Arizona tax returns.
  • Arizona has a new child tax credit of $100 per dependent under 17 years old and $25 for dependents 17 years old and older.
    • This credit is phased out for those that have a Federal adjusted gross income (FAGI) greater than $200,000 single/married filing separate and head of household, or $400,000 married filed joint.
  • Arizona allows taxpayers to add 25% of their charitable donations (that would normally be claimed as an itemized deduction) to the Arizona standard deduction amount.
  • The tax brackets for taxpayers have gone down from five to four for 2019 forward and the tax rate dropped slightly:
Single Rate Married Rate
$0-$26,500 2.59% $0-$53,000 2.59%
$26,501-$53,000 3.34% $53,001-$106,000 3.34%
$53,001-$159,000 4.17% $106,001-$318,000 4.17%
$159,001 and over 4.50% $318,001 and over 4.50%

Now a little tip to have your refunds processed faster; electronically file your taxes! It is about eight days while paper would be about 23 days. E-filing is more secure and efficient compared to being filed by paper.

Happy Tax season. Get those refunds! Reach out to your Henry+Horne adviser with any questions you may have on the key tax changes in Arizona. For more on Henry+Horne’s tax services, check out our Accounting Services page.

Natalie Hunt