Arizona allows you to itemize deductions even if you did not itemize on your federal return. If you entered itemized deductions in the federal section, those amounts will automatically transfer to your Arizona return. Our program will compare your Arizona standard deduction and Arizona itemized deductions and use the option that results in the lowest tax. You may also choose to force the use of Arizona itemized deductions.
Caution: Forcing itemized deductions may result in a lower refund or a higher balance due.
Arizona law requires certain adjustments in specific situations. The amounts entered below will be subtracted from the itemized deductions transferred from your federal return.
Charitable Contributions Claimed as Arizona Credits
Enter any charitable contributions included on your federal Schedule A for which you are claiming an Arizona tax credit.
Arizona does not allow you to receive both an itemized deduction and an Arizona tax credit for the same contribution.
State and Local Taxes Claimed as Arizona Credits
Review your federal Schedule A and the State and Local Taxes amount displayed on this screen. Enter any portion of that amount that is also being used to claim an Arizona tax credit.
Mortgage Credit Certificate Adjustment
If you claimed a federal Mortgage Credit Certificate (MCC) credit using federal Form 8396, enter the amount of mortgage interest paid that equals the federal credit claimed.
Deductions Allowed Federally but Not Taxed by Arizona
Enter any federal itemized deductions that relate to income not subject to Arizona income tax.
Program Pathway
- Open the tax year you’re working on.
- From the left-side menu, select State.
- Click the three dots (⋯) next to the state name to Edit.
- Select Itemized Deductions from the options.