We wanted to provide you with essential information regarding the Arizona Individual Income Tax General Welfare Rebate, also known as the Arizona Families Tax Rebate, coming soon. Please take a moment to review the details below.
Eligibility Criteria
To qualify for the Arizona Families Tax Rebate, you must meet one of the following qualifications:
- Had a tax liability of at least $1 on your 2021 full-year resident tax return
- If you do not meet the tax liability requirement for 2021, you could qualify if you had a tax liability of at least $1 on your 2020 full-year resident tax return, filed under the same status as your 2021 return.
- If you do not meet the tax liability requirement for 2021 or 2020, you could qualify if you had a tax liability of at least $1 on your 2019 full-year resident tax return, filed under the same status as your 2020 and 2021 returns.
Please note if your 2021 AZ tax return had AZ tax credits that brought the total AZ tax liability (Form 140, Line 52) down to zero, the 2021 return would NOT show the $1 tax liability amount required. AZ will then look at the 2020 tax year and then the 2019 return if there was no AZ tax liability in 2020.
Rebate Calculation
- $250 for each dependent under seventeen years of age at the end of 2021.
- $100 for each dependent who was at least seventeen years of age at the end of 2021.
There is a maximum of three dependents allowed for the rebate. If you claimed more than three dependents on your 2021 return, the rebate will be based on the youngest dependents first, then the older ones.
Important Dates
The Arizona Department of Revenue will issue rebates between October 15, 2023, and November 15, 2023. They will attempt to deposit funds electronically based on prior provided information. If this fails or you didn’t provide such information, a rebate check will be mailed to your most recent address. If you do not receive your rebate, a refund claim can be filed starting after November 15, 2024.
Federal Income Tax Implications
The IRS is likely to treat these payments as non-taxable, but in case they do not, the bill stipulates that any amount included in federal income will be subtracted from your Arizona gross income.
Communication Details
Any communication from the Arizona Department of Revenue regarding this rebate will clearly state, “This rebate is being issued pursuant to Senate Bill 1734, as passed by the fifty-sixth legislature, first regular session, and signed into law by the governor.” No letter relating to the Arizona families tax rebate issued under this section shall be sent from the governor’s office, be sent on the governor’s letterhead, or reference the governor’s office.
Please reach out to us if you have any questions or need assistance in understanding how this rebate may apply to your individual situation.
