PHOENIX — Arizona will match the federal tax deadline extension of May 17 for individual state taxes.
Gov. Doug Ducey signed the bill on Monday that pushed back the traditional final day to file taxes, April 15, after the IRS announced the federal tax filing extension last month.
This means your state and federal taxes will both be due on Monday, May 17.
The COVID-19 pandemic left an unprecedented level of economic instability in its wake with millions filing for unemployment benefits and finding odd jobs throughout 2020.
It’s made navigating this year’s tax season more difficult than normal for tens of thousands of Arizonans.
“Arizonans throughout the state have still felt the economic impact of the pandemic,” Ducey said. “This extension aligns with the new federal deadline, giving Arizonans more time to file their state income taxes and helping them to avoid penalties.”
But the Legislature has yet to conform Arizona's tax code to the many changes in federal law for 2020 filers.
For example, President Joe Biden's new American Rescue Plan Act provides a tax break on ordinarily taxable jobless benefits: The first $10,200 in benefits are tax-free.
The tax break would apply to the record 2 million Arizonans - about 40 percent of the working-age population - who received unemployment benefits in 2020.
As things stand now, they would have to pay Arizona state income taxes on some or all of their benefits, even though there's a tax break for federal filers.
The House of Representatives is expected to roll out a bill making across-the-board changes to the state tax code, including the exemption on benefits, to match changes at the federal level.
Many of those changes could result in lost state revenue.
"Everyone expects it to be expensive, and the state will need to figure out how that's going to be addressed," said Andrew Wilder, spokesman for the House Republican majority.
The extension applies only to individual income tax returns. Estimated payments continue to be due on April 15.
Here are some tips to make filing your taxes easier according to the Arizona Department of Revenue:
- E-file and have designated any refund for direct deposit to your bank. This is secure, fast, convenient, and no need to stop by the post office or bank.
- Double-check all the necessary lines and forms are filled out properly. Check for math errors or miscalculations.
- Make sure key information like your tax ID number, Social Security number, routing number or account number are correct in all the appropriate boxes.
- Do not staple any items to the return.
- If filing a paper return, use black ink and print on white paper, and sign and date the return.
- If sending a paper payment, include your voucher, as the department needs your Social Security number or employee identification number, along with the tax period and tax type.
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