What is an Excise Tax?
An excise tax is a tax directly levied (charged) on certain goods by a state or federal government. For example, fuel, cigarettes, cellphones, and alcoholic beverages (beer, wine, and liquor).
A taxpayer may claim a credit for increased excise taxes if the taxpayer is not claimed as dependent by any other taxpayer and whose federal adjusted gross income is:
1. $25,000 or less for a married couple or a single person who is a head of a household
2. $12,500 or less for a single person or a married person filing separately.
A person who is sentenced for at least sixty (60) days of the taxable year is not eligible to claim this credit. For more information see publication, Pub. 709, Excise Tax Credit – How Does Incarceration Affect Eligibility.
Form is used by individuals that are not required to file an Arizona individual income tax return but qualify to claim the refundable excise tax credit.