Due date for calendar year filers
Because April 15, 2017, falls on a Saturday and District of Columbia Emancipation Day will be observed on Monday, April 17, 2017, you have until Tuesday, April 18, 2017, to file your income tax return.
2016 Individual Income Tax Brackets Adjusted for Inflation
For 2016, the individual income tax brackets have been adjusted for inflation.
2016 Arizona Standard Deduction
For 2016, the Arizona standard deduction was indexed for inflation. For a single taxpayer or a married taxpayer filing a separate return the amount is $5,099. For a head of household or a married couple filing a joint return the amount is $10,189.
Subtraction for Arizona Bonus Depreciation
For assets placed in service in taxable years beginning from and after December 31, 2015, the allowable subtraction for Arizona’s bonus depreciation is 55% of the amount of federal bonus depreciation pursuant to Internal Revenue Code § 168(k).
Credit for Contributions made to Qualifying Charitable Organizations Arizona Forms 321 and 352 (new for 2016)
The laws providing for a credit for contributions made to qualifying Charitable Organizations have been amended.
For tax years beginning from and after December 31, 2015:
- Donations to qualifying charitable organizations and donations to qualifying foster care organizations will be claimed as separate credits with separate limitations for each, rather than combined limitations.
- Donations to qualifying charitable organizations (not including the qualifying foster care charitable organizations) will still be claimed on Arizona Form 321, Credit for Contributions to Qualifying Charitable Organizations.
For 2016, the maximum current year’s credit is:
- $400 for single or head of household
- $800 for married filing joint
- Donations to qualifying foster care charitable organizations will now be claimed on Arizona Form 352, Credit for Contributions to Qualifying Foster Care Charitable Organizations.
For 2016, the maximum current year’s credit is:
- $500 for single or head of household
- $1,000 for married filing joint
- Credit eligible contributions made to a qualifying charitable organization or a qualifying foster care charitable organization that are made on or before the 15th day of the fourth month following the close of the taxable year may be applied to either the current or the preceding taxable year and is considered to have been made on the last day of that taxable year. For example, a taxpayer who files a 2016 calendar year end tax return may claim qualifying contributions made between January 1, 2017 and April 18, 2017 on either the 2016 or 2017 income tax return.
NOTE: Because calendar year filers have until April 18, 2017, to file their 2016 tax return, these taxpayers also have until April 18, 2017, to make qualifying contributions and claim these credits on their 2016 return.
- If you have a carryover amount from a prior year for cash contributions made to a qualifying foster care charitable organization for which you claimed a credit on Form 321, you must claim the carryover amount on Form 321. Do not claim any carryover amount on Form 352 from contributions made to qualifying foster care charities and claimed on Form 321 in prior years.
Credit for Contributions Made or Fees Paid to Public Schools (Arizona Form 322)
The law providing for a credit for contributions made or fees paid to a public school by a taxpayer or on behalf of a taxpayer was amended to allow a taxpayer to claim a credit for contributions made or fees paid to a public school for extracurricular activities which may or may not require an enrolled student to pay fees to participate in a qualifying extracurricular activity. For more information on what qualifies as an extracurricular activity for the purpose of this credit, see Form 322.
Recent legislation also expanded what qualifies as an extracurricular activity. Beginning 2016, contributions made or fees paid for cardiopulmonary resuscitation training qualify for this credit. For more information, see Form 322.
Credit for Contributions to Private School Tuition Organizations (Arizona Form 323)
The allowable current year’s credit for contributions to private school tuition organizations was adjusted for inflation purposes. For 2016, the maximum current year’s credit is:
- $545 for single or head of household
- $1,090 for married filing joint
Solar Liquid Fuel Credit (Arizona Form 344)
The credit for solar liquid fuel was expanded for taxable years beginning from and after December 31, 2015, through December 31, 2026. Previously, the credit was limited to costs incurred during the taxable year costs for research and development associated with solar liquid fuel.
For 2016 taxable years, the credit also includes costs for the production of solar liquid fuel in this state in commercial quantities, and for costs incurred during the taxable year to convert or modify existing motor vehicle fuel service stations for the retail sale of solar liquid fuel to customers. For more information, see Arizona Form 344.
Credit for Contributions Made to Certified School Tuition Organization (Arizona Form 348)
The allowable current year’s credit for contributions to a certified school tuition organization was adjusted for inflation purposes. For 2016, the maximum current year’s credit is:
- $542 for single or head of household
- $1,083 for married filing joint