Individual Income Tax Highlights

2019 HIGHLIGHTS

 

Due date for calendar year filers

Your 2019 individual income tax return is due by midnight on April 15, 2020. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2020.

 

Arizona 2019 Legislation
House Bill 2757 amended several statutes affecting Arizona’s 2019 individual income taxes. Some of these changes include:

2019 Individual Income Tax Brackets Adjusted for Inflation
For 2019, the Arizona individual income tax brackets on Tax Table X & Y were reduced from five to four brackets from the previous year and adjusted for inflation. The Optional Tax Table was also adjusted for inflation. For specific amounts, see the Optional Tax Table and Tax Table X & Y.

 

Personal and Dependent Exemptions
The personal and dependent exemptions were repealed for tax years beginning from and after December 31, 2018.

 

Other Exemptions (non-dependents)
Taxpayers may continue to take a $2,300 exemption for each person age 65 or over regardless of relationship to the taxpayer if the taxpayer pays at least $800 for the person’s medical costs or costs for maintaining that person in a nursing care or residential care institution. A taxpayer may also take a $2,300 exemption for a stillborn child.

 

2019 Arizona Standard Deduction Amounts Adjusted
The 2019 Arizona standard deduction amounts are:

  • $12,200 for a single taxpayer or a married taxpayer filing a separate return;
  • $24,400 for a married couple filing a joint return; and
  • $18,350 for individuals filing a head of household return.

 

Increased Standard Deduction for Charitable Contributions
Certain taxpayers may increase the allowable standard deduction equal to 25% of the total amount of the taxpayer’s charitable deduction that would have been allowed if the taxpayer elected to claim itemized deductions. This increase is not available to taxpayers filing Form 140A or 140EZ.

 

Arizona Lottery Winnings
The allowable $5,000 subtraction was repealed. 

House Bill 2757, passed during the 2019 Arizona legislative session, repealed the Arizona lottery subtraction.  As a result, individual taxpayers may no longer subtract from their income the amount of prizes or winnings up to $5,000 in a single taxable year from any of the state lotteries.

The removal of the Arizona lottery subtraction applies retroactively to taxable years beginning from and after December 31, 2018. 

This means Arizona taxpayers will not be able to subtract Arizona state lottery prizes or winnings up to $5,000 when they file their 2019 Arizona income tax return in calendar year 2020. 

 

Dependent Tax Credit
Taxpayers may claim a dependent tax credit for individuals that qualify as dependents for federal purposes. The amount of the credit is $100 for each dependent under the age of 17 and $25 for each dependent who is age 17 or over. The total amount of the allowable credit is reduced for taxpayers whose federal adjusted gross income is $200,000 or more (single, married filing separate, or head of household) and $400,000 or more (married filing joint).

 

Pension for Retired/Retainer Pay of the Uniformed Services
A taxpayer who receives benefits, annuities, and pensions as retired/retainer pay of the uniformed services of the United States may each subtract the amount received or $3,500, whichever is less. If a married couple file a joint return and both spouses receive such payments, each spouse may subtract up to $3,500.


Credit for Contributions to Qualifying Charitable Organizations (Arizona Form 321)
Recent legislation expanded the credit for contributions to include qualifying charitable organizations that spend at least 50% of their budget on services to all individuals (previously limited to children) who have a chronic illness or physical disability and who are residents of Arizona. For more information, see the instructions for Form 321.


Credit for Contributions Made or Fees Paid to Public School (Arizona Form 322)
Recent legislation also expanded the use of qualifying contributions made after June 30, 2019 through June 30, 2022 to include acquisition of capital items, community school meal programs, student consumable health care supplies, and playground equipment and shade structure for playground equipment. For more information, see the instructions for Form 322.


Credit for Contributions to Private School Tuition Organizations (Form 323)
The allowable current year credit for contributions to private school tuition organizations was adjusted for inflation purposes. For 2019, the maximum current year credit is:

  • $569 for single and head of household taxpayers
  • $1,138 for married taxpayers filing a joint return


Credit for Contributions Made to Certified School Tuition Organizations (Form 348)
The allowable current year credit for contributions to a certified school tuition organization was adjusted for inflation purposes. For 2019, the maximum current year credit is:

  • $566 for single and head of household taxpayers
  • $1,131 for married taxpayers filing a joint return