Taxpayers have until Tuesday, April 18, 2023, to file their 2022 tax return since April 15, 2023 falls on a federal holiday. If filing an extension, the extended due date to file the income tax return is October 16, 2023 because October 15, 2023 falls on a Sunday.
2022 Arizona Standard Deduction
For the 2022 tax year, annual adjustments for Arizona standard deduction amounts adjusted for inflation are as follows:
• $12,950 for a single taxpayer or a married taxpayer filing a separate return;
• $25,900 for a married couple filing a joint return; and
• $19,400 for individuals filing a head of household return.
The standard deduction can be increased by 27% of the charitable deductions the taxpayer would have claimed if they had itemized their deductions.
Repealed Individual Tax Credits
Beginning with tax year 2022, the following individual income tax credits have been repealed.
• Pollution Control Credit (Form 315)
• Employment by a Healthy Forest Enterprise Credit (Form 332)
Pass-Through Entity (PTE) Tax
Beginning with tax year 2022, Arizona allows an individual partner or an individual shareholder of a partnership/S Corporation a nonrefundable tax credit for the taxes paid by the PTE on the individual’s behalf for their share of the income distributed to the partner/shareholder. If the allowable credit exceeds the taxes otherwise due on the claimants income, or if there are no taxes due, the amount of the claim not used to offset taxes may be carried for not more than five consecutive taxable years as a credit against subsequent years’ income tax liability.
An individual taxpayer who claims the allowable PTE tax credit must also adjust their Arizona gross income by adding the amount of the tax payment made by the PTE for which the tax credit is claimed. A taxpayer should report the add-back adjustment on page 5, “Other Additions to Arizona Gross Income” and included in the total amount reported on the income tax return.