Arizona Tax Rebate FAQ

Arizona Republicans Championed a

Tax Rebate That Rolls Out this Month

I got a letter saying I am eligible for the Arizona Families Tax Rebate? Is this real?

Yes, it is real! This rebate is being issued pursuant to Senate Bill 1734, as passed by the fifty-sixth legislature, first regular session. Republicans from the House and Senate, over the objections of Governor Hobbs, supported allocating a portion of the State's surplus towards a targeted tax rebate to Arizona families.

Why did Republicans support this proposal?

To help families struggling with the crippling effects of inflation. Gas, groceries, housing – all of these essentials have gone up over the past three years due to reckless federal policies coming out of Washington.

What is the rebate?

The rebate is a return of funds collected by the government to taxpayers. The rebate amount is $250 per dependent under age 17 and $100 per dependent over age 2017 as claimed on their 2021 returns. The law limits the rebate to three dependents, regardless of age, and caps the maximum amount of the rebate at $750 per taxpayer.

Who is eligible?

Eligible taxpayers include those who paid at least $1 of individual income tax on their 2021, 2020, or 2019 return and claimed Arizona's dependent tax credit in 2021 on their Arizona resident individual income tax return.

Are the rebates subject to state income taxes?

No, the law specifies that the rebate is not subject to state income tax so you will not owe any state income tax.

Are the rebates subject to federal income tax?

Any such determination of federal taxability is made the Internal Revenue Service (IRS), not by the State of Arizona. However, the rebate was constructed to be consistent with other rebates that the IRS deemed non-taxable for 2022. The Arizona Department of Revenue has reached out to the IRS to obtain a federal taxability determination and this page will be updated accordingly once a response is received.

How will rebates be issued?

The Department of Revenue will issue a direct deposit to taxpayers who provided direct deposit information when they filed their 2021 and 2022 returns. If the Department does not have direct deposit information on file or if a direct deposit is not successfully processed, the Department will issue a paper check to the last known address. If neither is successful, you may file a claim using the Department's online claim portal (https://familyrebate.aztaxes.gov).

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov