Pinal Today

The Arizona Department of Revenue has issued important updates for taxpayers as the 2025 tax season approaches. Residents are reminded of the filing requirements, which mandate that full-year or part-year residents file a tax return if their gross income exceeds specific thresholds: $14,600 for single or married individuals filing separately, $21,900 for heads of household, and $29,200 for married couples filing jointly.

For non-residents, these thresholds are prorated based on their Arizona gross income relative to their federal adjusted gross income. The standard deduction amounts remain consistent with these figures.

Taxpayers have until April 15, 2025, to file their 2024 tax returns or request an extension until October 15, 2025. Those who received the Arizona Families Tax Rebate in 2024 should note that it is subject to federal income tax but not state income tax. Recipients will receive Form 1099-MISC from the department by January 31, 2025.

Changes have been made regarding charitable contributions. For those opting for the standard deduction without itemizing deductions on their state return, the allowable portion of charitable contributions used to compute the Standard Deduction Increase has risen from 31% to 33%.

Inflation adjustments have also been applied to various credits:

- Contributions to qualifying charitable organizations (Form 321) now allow a maximum credit of $470 for single and head of household taxpayers and $938 for married couples filing jointly.

- Contributions to private school tuition organizations (Form 323) offer a maximum credit of $731 for single and head of household taxpayers and $1,459 for joint filers.

- Contributions made to certified school tuition organizations (Form 348) permit a maximum credit of $728 for single and head of household taxpayers and $1,451 for joint filers.

- Contributions to qualifying foster care charitable organizations (Form 352) provide a maximum credit of $587 for single and head of household taxpayers and $1,173 for joint filers.

The IRS has announced that electronic tax filing begins on January 27, offering free options through partnerships like Free File Alliance. This year marks the permanent availability of IRS Direct File service in both English and Spanish across multiple devices.

To ensure a smooth filing process, taxpayers are advised to gather all necessary documents beforehand. Completing federal returns before starting state returns is crucial. Using e-file with direct deposit can expedite refunds. It's also recommended to choose reputable preparers if not self-filing.

Online resources such as tutorials and live chat can help avoid phone delays when seeking assistance. Ensuring accuracy in forms by verifying essential information like Social Security numbers is vital since incomplete returns cannot be processed by ADOR.