Tax 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 Arizona changes.
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:
|$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.