Bill > SB1203

This bill makes several changes to Arizona's income tax laws, primarily focusing on increasing the standard deduction and introducing new subtractions for certain taxpayers. It amends existing statutes to adjust the thresholds for filing individual tax returns, allowing for a higher gross income before a return is required. The bill also modifies provisions related to short-form and simplified tax returns. Crucially, it significantly increases the standard deduction amounts for single individuals, heads of households, and married couples filing jointly, with these higher amounts taking effect for taxable years beginning after December 31, 2024, and these figures will be adjusted for inflation annually. Additionally, the bill introduces new subtractions from Arizona gross income for taxable years beginning after December 31, 2024, and before January 1, 2029, allowing taxpayers to deduct amounts equivalent to enhanced deductions for seniors and deductions for qualified tips and qualified overtime compensation, as defined by specific sections of the Internal Revenue Code, provided these amounts are included in Arizona gross income. These changes are intended to provide tax relief and are applied retroactively to taxable years beginning after December 31, 2024.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84301