By Howard Fischer | Capitol Media Services via Arizona Capitol Times
Arizonans are in line for an income tax cut when they file their returns next April.
But don’t go planning that trip to Europe — or even Los Angeles — just yet.
A new law is boosting the standard exemption on state tax forms. For individuals the increase is $50; couples get twice as much.
But there’s less there than meets the eye.
The exemption comes off each taxpayer’s adjusted income, the figure against which the actual taxes are computed.
So even for those making more than $155,159 a year, which is where the state’s top tax bracket starts, that $100 they can exempt from their taxable income translates out to a tax cut somewhere in the neighborhood of $4.50, enough to buy a couple of gallons of gas.
And those earning less will be seeing a smaller reduction.