As a result of Arizona's 2023 budget, you may be eligible for a one-time Arizona Families Tax Rebate.
Who is eligible for the rebate?
Arizona taxpayers who meet both criteria below will be eligible for the Arizona Families Tax Rebate.
- The taxpayer must have claimed Arizona's dependent tax credit on their 2021 full-year resident Arizona state return.
- The taxpayer must have paid at least $1 of Arizona income tax on their 2021 return or paid at least $1 of Arizona income tax on their 2020 or 2019 Arizona returns under the same filing status of their 2021 return.
Can I check my eligibility?
Yes, the Arizona Department of Revenue has recently launched a portal that allows you to check your rebate eligibility and status.
How much is the rebate?
The rebate is equal to $250 per dependent under age 17 and $100 for dependents over age 17 as claimed on the eligible taxpayer's 2021 return. Taxpayers cannot claim more than three dependents, regardless of age, so the maximum amount the rebate can reach is $750.
How will I receive the rebate?
The rebates will be issued via direct deposit for taxpayers who reported their direct deposit information on their 2021 or 2022 Arizona returns when filed. If Arizona does not have an eligible taxpayer's direct deposit information, the rebate will be issued as a paper check and mailed to the taxpayer's last known address.
Will the rebate be taxable?
"The taxability of the Arizona Families Tax Rebate is a federal determination to be made by the Internal Revenue Service (IRS). The Arizona Department of Revenue has reached out to the IRS in order to obtain a federal taxability determination. Once we receive a response from the IRS, we will update this FAQ accordingly."