Arizona’s state government is introducing a new tax plan as part of the state budget, aiming to provide financial relief to families. The Arizona Families Tax Rebate offers eligible families a potential rebate of up to $750. This one-time child tax rebate is designed to assist Arizonans facing the economic challenges posed by high inflation.
State authorities estimate that approximately 740,000 Arizona taxpayers could be eligible for these payments. To meet the requirements for the rebate, you must be a year-round resident of Arizona and have claimed the state’s tax credit for dependents on your 2021 tax return. Additionally, you should have owed at least $1 in taxes during any of the years 2019, 2020, or 2021.
Arizona’s Tax Data-Driven Approach Streamlines Rebate Process for Families
The state will utilize recent tax data to identify qualifying individuals, eliminating the need for residents to submit rebate applications. Eligible taxpayers have the opportunity to receive the rebate for a maximum of three dependents. For dependents under 17 years of age, the rebate amounts to $250 per dependent, while for those aged 17 and older, it stands at $100.
Consequently, in certain situations, families with multiple dependents may receive a total rebate of up to $750.
The Arizona Department of Revenue is slated to disburse the rebates no later than November 15, 2023. Eligible families will obtain their rebate funds either through direct deposit or by receiving paper checks sent via mail.
Is there more you should be aware of?
Arizona found itself with a substantial budget surplus, exceeding $2 billion. During budget deliberations, Republican legislators designated roughly $260 million to establish the Arizona Families Tax Rebate. In May, Arizona Governor Katie Hobbs sanctioned the state’s $17.8 billion budget.
In the previous year, Arizona’s lawmakers passed a bill that reduced the state’s income tax rate to a flat 2.5% from 2.98%. The implementation of this new flat personal income tax rate was initially anticipated for 2024. However, due to unexpectedly robust tax revenues, it took effect in 2023.
Arizona isn’t alone in providing financial assistance to its eligible residents this year. Numerous states are issuing “stimulus checks,” tax refunds, and rebates to millions of qualifying residents. Some states are also offering alternative forms of tax relief to combat the impact of inflation, such as the temporary suspension of the gas tax in Georgia and the grocery tax holiday in Tennessee.
For many families grappling with the challenges of soaring inflation and economic unpredictability, the Arizona Families Tax Rebate comes as a much-needed lifeline. As one resident expressed, “It’s reassuring to witness the state government taking proactive steps to support families like mine during these difficult times.”
Alabama Residents Also Able to Claim Tax Rebates: Know Who Qualifies
Alabama taxpayers can look forward to receiving tax rebates in the near future. Governor Kay Ivey, in a recent news announcement, emphasized that these one-time tax rebates are scheduled to begin distribution on December 1. This initiative reflects the governor’s commitment to giving back a portion of the state’s surplus budget to its citizens.
Governor Ivey expressed her belief in the government’s responsibility to prudently manage taxpayer funds while actively seeking ways to support residents during challenging times. With the nation currently facing economic hardships and Alabamian families across diverse backgrounds feeling the strain on their finances, the tax rebates aim to provide relief just in time for the holiday season.
The rebates are set at $150 for single taxpayers, heads of households, and those married but filing separately, while married couples filing jointly will receive $300. Eligible taxpayers can anticipate receiving these rebates through either direct deposit or paper checks.