Tax Credits for Working Families

Arizona

Earned Income Tax Credit^

Income Tax Rate: Graduated 2.59-4.54 percent

State EITC: No

News/Notes: Arizona Community Action Associates and Children’s Action Alliance have each called for a state EITC and Governor Jan Brewer has created an EITC task force to educate Arizonans about the federal credit.

Reports/Materials: Arizona State & Local Taxes, from Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, Institute on Taxation and Economic Policy, January 2013

Arizona: State and Local Taxes in 2007, Institute on Taxation and Economic Policy, November 2009

Earned Income Tax Credits: The Most Effective Way to Lift Families out of Poverty, Children’s Action Alliance, July 2007

Child Tax Credit^

State Credit: No

Child and Dependent Care Tax Credit^

State Credit: No

Property Tax Circuit Breaker^

Circuit Breaker: No

Notes/News: Although Arizona does not have a circuit breaker, it does provide a property tax exemption up to $5,000 for low-income widows, widowers and persons with disabilities as well as a refundable credit program for low-income homeowners and renters.

Eligibility: Seniors over 65 and Social Security recipients with income below a pre-determined and unchanging amount who lived in Arizona for the entire year. For filers who live alone, the income limit is $3,750. For filers who do not live alone, the limit is $5,500.1

Refundable: Yes

Formula: The credit is calculated according to the following table.2

Living Alone

Living With Others

Tax Credit

Income Income

0-1750

0-2500 502
1751-1850 2,501-2,650 479
1,851-1,950 2,651-2,800 457
1,951-2,050 2,801-2,950 435
2,051-2,150 2,951-3,100 412
2,151-2,250 3,101-3,250 390
2,251-2,350 3,251-3,400 368
2,351-2,450 3,401-3,550 345
2,451-2,550 3,551-3,700 323
2,551-2,650 3,701-3,850 301
2,651-2,750 3,851-4,000 279
2,751-2,850 4,001-4,150 256
2,851-2,950 4,151-4,300 234
2,951-3,050 4,301-4,450 212
3,051-3,150 4,451-4,600 189
3,151-3,250 4,601-4,750 167
3,251-3,350 4,751-4,900 145
3,351-3,450 4,901-5,050 123
3,451-3,550 5,051-5,200 100
3,551-3,650 5,201-5,350 78
3,651-3,750 5,351-5,500

56

The cap is determined based on whether or not the filer lives alone. The tax status or relationship between the filer and other people living in the home has no bearing on the cap.

Renters are eligible for the credit but must ask their landlord to prepare and provide Form 201 prior to completing the refund form. Landlords must complete Form 201 if requested to do so by a tenant.3

 


 

1 A.R.S. § 43-1072 (A)

2 A.R.S. § 43-1072 (B)

3 A.R.S. § 43-1072 (C)