Arizona’s State Budget Delivers Financial Assistance to Families Arizona families are poised to benefit from a new taxation initiative within the state budget. The Arizona Families Tax Rebate is aimed at providing relief to those grappling with the challenges of soaring inflation. Qualifying families can anticipate a rebate of up to $750, effectively constituting a one-time child tax rebate. State authorities estimate that approximately 740,000 Arizona taxpayers will be eligible for these payments. To qualify for the rebate, individuals must be year-round residents of Arizona and have claimed the state’s tax credit for dependents on their 2021 tax returns. Additionally, they should have owed at least $1 in taxes during either 2019, 2020, or 2021. The state will utilize recent tax data to identify eligible Arizonans, eliminating the need for residents to apply for the rebate.
Families meeting the criteria can receive the rebate for a maximum of three dependents. For dependents under 17, the rebate amounts to $250 per dependent, while for dependents aged 17 and older, it stands at $100. Consequently, families with multiple dependents may, in certain cases, receive a total rebate of up to $750. The distribution of these rebates by the Arizona Department of Revenue is expected to occur by November 15, 2023. Eligible families will receive the rebate funds through either direct deposit or paper checks delivered via mail.
AZ Families Tax Rebate
Arizona’s Budget Surplus Spurs Tax Rebate for Families Much like several other states, Arizona found itself with a substantial budget surplus exceeding $2 billion. During budget deliberations, Republican lawmakers earmarked nearly $260 million to establish the Arizona Families Tax Rebate. State officials have underscored that the primary objective of this refund is to assist Arizonans grappling with the repercussions of mounting inflation. This rebate effectively operates as a one-time child tax rebate, with the potential to benefit close to 740,000 taxpayers in Arizona.
In parallel, various other states, such as Georgia, which recently suspended its gas tax, and Tennessee, which observed a food tax holiday, have introduced alternative tax relief measures to address the challenges of inflation.
Furthermore, Arizona is not the sole state extending financial support to eligible residents this year. Millions of qualifying individuals across different states are receiving rebates, tax refunds, and often referred to as “stimulus checks.” In the preceding year, Arizona’s legislators passed a bill that reduced the state’s income tax rate from 2.98% to a flat 2.5% rate, initially slated for implementation in 2024. However, owing to higher-than-anticipated tax revenues, the reduced rate is already in effect as of 2023.