Wrongful Incarceration Exclusion and Refund Claims

Arizona residents who were wrongfully incarcerated may be eligible for federal and state income tax refunds. Changes to federal law adopted in 2015 exclude from income any civil damages, restitution or other monetary awards that resulted from wrongful conviction of a covered offense. Claims for federal tax refunds for years prior to 2012 must be submitted to the Internal Revenue Service by December 19, 2016.

Arizona residents who qualify to amend their federal returns for this purpose may also amend their Arizona tax returns for the same periods, provided they also submit their refund claim by this same deadline to the Arizona Department of Revenue. Please see Arizona Publication 711 for eligibility requirements and filing instructions.