Common Tax Myths and Facts

In March 2022, the Arizona Department of Revenue (ADOR) outlined some common tax myths and facts for individual tax filings, which are listed below.
Myth: I have filed an extension this year, so I do not need to pay anything yet.
Fact: Extensions only extend the time you have to file the return, not the time you have to pay any taxes owed.
Myth: My minor child is not required to pay taxes on his or her income.
Fact: Regardless of age, individuals who earn at least the minimum earned income amount are required to file and pay tax on that income.Tax myths
Myth: If I donate to a public school or qualifying charity, I will get all of that money back in my income tax refund.
Fact: These credits may only be used to the extent that they reduce a tax liability to zero. Any unused amounts can be carried forward for up to five consecutive years.
Myth: Everyone receives a Form 1099-G if they received a tax refund.
Fact: The AZTaxes website will only supply Form 1099-G to taxpayers who itemized on their prior-year federal return and received a state refund.
Myth: If I mail my return to 1600 W. Monroe, it will be processed.
Fact: If filing by paper, mail to the correct P.O. Box listed on the form according to tax due or refund. ADOR staff spend time researching and transferring payments and returns to the appropriate department thus delaying the process of payments and refunds.
Myth: The Arizona Department of Revenue has not processed my return and refund so I should resubmit it to ensure the Department received it.
Fact: If you mail your tax return or payment, please allow 8 weeks for processing. Do not resubmit a return. Alternatively, you can make electronic payments at and schedule the payment date for a future date. Do not submit an electronic payment if you mailed a paper check.
Myth: IRS and the Arizona Department of Revenue (ADOR) are the same.
Fact: The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account.
E-File Your Return
E-file is a cooperative tax filing program with the IRS that makes it possible for taxpayers to file both federal and state income tax returns electronically. Taxpayers get an acknowledgement of receipt from both the IRS and ADOR by email from the software company, so they will know their returns have been received and accepted. Online filing is secure. The information is encrypted and securely transmitted to the IRS and ADOR.
Electronic filing is:

  • Fast: Receive your refunds up to six times as fast as paper return filers.
  • Accurate: Fewer errors than paper forms.
  • Affordable: If you qualify, it’s free.
  • Paperless: Help the environment by reducing paper usage.

The benefits of filing electronically include:

  • E-File and e-pay in a single step.
  • E-File early and schedule an electronic payment at the same time for withdrawal from a bank account on a future date. For instance, a taxpayer may prepare and e-file a return in March and schedule the electronic withdrawal prior to the April due date.

Paying Taxes Electronically
In addition to filing a return electronically, taxpayers can pay their tax due electronically. All you need for an electronic funds withdrawal is the checking and savings account number and the routing transit number for the financial institution.
The benefits of paying electronically include:

  • Payment information will only be used for the tax payment(s) authorized by a taxpayer. No unauthorized withdrawals will be made.
  • E-Pay is free. No need for paper checks or cash. Although there are no service charges for e-check, taxpayers may want to verify with their financial institution about any fees it may charge. Surcharge may apply for credit/debit card.

Direct Deposit of Refund
Choose to direct deposit your refund and receive it directly into your bank account or other financial institution, such as a mutual fund, brokerage firm, or credit union, instead of sending you a check.
Why use Direct Deposit?

  • Fast. Receive the refund in your account within two business days of process and approval – even faster if e-filed! Paper refunds are mailed within three business days after approval, plus mail delivery time, plus a trip to the bank can equal a week later.
  • More secure. There is no check to get lost.
  • Convenient. No trip to the bank to deposit your check.
  • Saves tax dollars. A refund by direct deposit costs less to process than a check.
  • Free. No cost for direct deposit.
  • Flexible. Available whether the return is filed electronically or by paper.

ADOR system’s note when a direct deposit has been sent to your bank, but the bank’s processing system will determine when you will see the refund in your account. If your bank account rejects the deposit, ADOR will send you a check.

Need Guidance and Help?
If you need advice, give us a call and we will be happy to discuss your situation.