The Arizona Department of Revenue (ADOR) is reminding taxpayers of some key changes when filing for the 2020 tax year.
Arizona individual income tax returns for tax year 2020 will include the following adjustments:
- State standard deduction amounts that match the federal standard deduction amounts ($12,400 single/married filing separate, $18,650 head of household, $24,800 married filing joint).
- Taxpayers that take itemized deductions on their Arizona income tax returns and claim charitable contributions as state tax payments on their federal 1040 Schedule As are required to make adjustments for the amount of charitable contributions taken as state tax payments claimed on their federal itemized deductions (Form 1040 Schedule A).
For 2020, the Arizona individual income tax brackets on Tax Tables X & Y were adjusted for inflation:
|Single or Married Filing Separate||Rate||Married Filing Joint or Head of Household||Rate|
|$0 – $27,272||2.59%||$0 – $54,544||2.59%|
|$27,273 – $54,544||3.34%||$54,545 – $109,088||3.34%|
|$54,545- $163,632||4.17%||$109,089- $327,236||4.17%|
|$163,633 and over||4.50%||$327,237 and over||4.50%|
Electronic filing has grown in Arizona, with 90 percent of the 2.9 million individual income tax returns filed with ADOR in the 2019 tax year. Per ADOR, on average, refunds for e-filed returns may arrive almost two weeks sooner than those for paper returns.
As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.