Can I Itemize on My Arizona Return If I Claimed the Standard Deduction on My Federal Return?

Yes. You can itemize deductions on your Arizona return even if you claimed the standard deduction on your federal return. Arizona allows taxpayers to choose the deduction method that provides the greater tax benefit on their state return.

For most deductions, Arizona starts with the itemized deductions allowed under the Internal Revenue Code (IRC). However, some deductions may require adjustments for Arizona tax purposes, so the amount allowed on your Arizona return may differ from the amount allowed federally. Arizona taxpayers may need to complete Arizona Form 140 Schedule A, Itemized Deduction Adjustments, depending on their situation.

If you choose to itemize:

• Complete a federal Schedule A, even if you did not use it on your federal return.
• Review Arizona Form 140 Schedule A, Itemized Deduction Adjustments to determine whether any state-specific adjustments are required.
• Include a copy of your completed federal Schedule A with your Arizona return if itemizing. 

The Arizona instructions specifically state that taxpayers may itemize on an Arizona return even when taking the federal standard deduction.

Married Filing Separate Returns

If you are filing as Married Filing Separate, both spouses must use the same deduction method:

• If one spouse itemizes, both spouses must itemize.
• If one spouse claims the standard deduction, both spouses must claim the standard deduction. 

Program Entry

1. Go to the State section.
2. Select Arizona.
3. Edit the Arizona return.
4. Open Itemized Deductions.
5. Enter or review your Arizona itemized deduction information.

Additional Information