Arizona families are set to receive financial assistance from the state government through the newly introduced Arizona Families Tax Rebate program, a part of the state’s budget.
This rebate program is designed to provide relief to Arizonans facing the challenges of high inflation and will offer qualifying families rebates of up to $750.
Approximately 740,000 Arizona taxpayers are expected to benefit from this initiative. To qualify for the rebate, individuals must be year-round residents of Arizona and have claimed the state’s tax credit for dependents on their 2021 tax return.
They must also owe a minimum of $1 in taxes during 2019, 2020, or 2021. The state will identify eligible Arizonans using recent tax information, eliminating the need for residents to apply for the rebate.
Qualifying taxpayers can receive the rebate for up to three dependents, with a $250 rebate per dependent under 17 and a $100 rebate for dependents aged 17 and older.
Families with multiple dependents could receive up to $750 in restitution.
The Arizona Department of Revenue is scheduled to distribute the rebates by November 15, 2023. Eligible families will receive the rebate funds through direct deposit or paper checks delivered via mail.
Arizona Families to Get Financial Boost via Tax Rebates
Arizona’s significant budget surplus of over $2 billion prompted Republican lawmakers to allocate approximately $260 million to create the Arizona Families Tax Rebate.
Arizona Governor Katie Hobbs approved the state’s $17.8 billion budget in May, which included this rebate program.
Notably, Arizona’s state income tax rate was reduced from 2.98% to a flat rate of 2.5% in the previous year, earlier than initially anticipated due to higher-than-expected tax revenues.
Arizona is among several states providing financial support to eligible residents this year through stimulus checks, tax refunds, and rebates.
Other states have implemented different forms of tax relief, such as the gas tax suspension in Georgia and the grocery tax holiday in Tennessee, in response to economic challenges, including high inflation.
The Arizona Families Tax Rebate is welcomed by many families grappling with the economic uncertainties of high inflation, offering crucial assistance during these trying times.