Who must file an amended Arizona return due to the unemployment exclusion?
Arizona has recently (August 26, 2021) updated their information regarding the Unemployment exclusion:
"Arizona taxpayers who received unemployment benefits during 2020 and filed their Arizona tax return before the March 11, 2021 enactment of the American Rescue Plan Act of 2021 must amend their 2020 Arizona tax return to receive a refund of the amount of Arizona income tax they overpaid. Arizona taxpayers who received unemployment benefits during 2020 and filed their Arizona income tax return after March 11, 2021 most likely already received the benefit of the unemployment exclusion and should not file an Arizona amended return.
Regardless of whether they filed before or after March 11; however, Arizona taxpayers who received automatic federal income tax refunds of unemployment benefits from the IRS should amend their 2020 Arizona income tax return."
When should I amend my 2020 Arizona tax return?
You may amend your 2020 Arizona income tax return for a refund of your unemployment benefits only after you amend your 2020 federal income tax return or after the IRS automatically adjusts your 2020 federal income tax return. In order to receive a refund of your 2020 unemployment benefits, you will need to amend your 2020 Arizona income tax return within 4 years of the original due date of the return.
*Prior year state returns cannot be e-filed. It must be printed, signed, and mailed.