An individual may claim itemized deductions on an Arizona return even if taking a standard deduction on a federal return. For the most part, an individual may claim those deductions allowable as itemized deductions under the Internal Revenue Code. If claiming Arizona itemized deductions, individuals must complete and include Federal Form 1040, Schedule A, with an Arizona return. For the standard deduction amount, please refer to the instructions of the applicable Arizona form and tax year.
As for dependent exemptions, Arizona allows an exemption for each of the following:
- A person who qualifies as a dependent on a federal tax return.
- A taxpayer may also claim an exemption for each person age 65 or older (related or not) who does not qualify as a dependent on a federal return, but one of the following applies:
- During the tax year, the taxpayer paid more than one-fourth of the cost of keeping this person in an Arizona nursing care institution, an Arizona residential care institution, or an Arizona assisted living facility. The cost must be more than $800.
- During the tax year, the taxpayer paid more than $800 for either Arizona home health care or other medical costs for the person.
- An Arizona resident may claim an exemption for a parent or ancestor of a parent. A qualifying parent or ancestor of a parent may be any one of the following:
- The parent’s ancestor is a grandparent, great grandparent, great-great grandparent, etc.
- If married filing a joint return, a spouse’s parent or an ancestor of a spouse’s parent.
- An Arizona resident may claim this exemption if all of the following apply:
- The parent or ancestor of a parent lived in a principal residence for the entire taxable year.
- The taxpayer paid more than one-half of the support and maintenance costs of the parent or ancestor of a parent during the taxable year.
- The parent or ancestor of a parent was 65 years or older during the taxable year.
- The parent or ancestor of a parent required assistance with activities of daily living, like getting in and out of bed or chairs, walking around, going outdoors, using the toilet, bathing, shaving, brushing teeth, combing hair, dressing, medicating or feeding.
The amount an individual may claim as a personal exemption depends on his/her filing status. Consequently, a taxpayer may claim an additional exemption for being blind or over age 65. For personal exemption amounts, please refer to the instructions and tax year of the applicable Arizona form.