By Ryan Randazzo | Arizona Republic
The uncertainty hanging over tax-filing season in Arizona received a bit of clarity Monday, as Republicans in the Legislature advanced two bills to ensure taxpayers don’t face increases due to changes at the federal level.
At the same time, a representative from the Department of Revenue said that people who file their taxes now, before the changes are approved, will not need to amend their returns if the Republican plan is signed into law.
The actions follow federal tax changes that were part of President Trump’s Tax Cuts and Jobs Act of 2017, which included new limits on certain federal deductions, eliminating provisions like the federal personal exemption and lower federal tax rates.
Those changes could cause Arizonans to pay higher state taxes because the changes could leave them with a higher adjusted gross income. That line item on federal returns is the starting point for calculating what they owe to the state.
Without changes to Arizona’s tax code, the state would see a windfall from 2018 returns because residents here would pay more. Some tax preparers have recommended waiting to file Arizona returns to see what happens with the bills.