Arizona One-Time General Welfare Rebate

The Arizona Department of Revenue (DOR) will be issuing a one-time individual income tax general welfare rebate, entitled the Arizona Families Tax Rebate to Arizona taxpayers who meet the following requirements:

•     filed a full-year resident tax return for tax year 2021 and
•     claimed a dependent tax credit on the tax return that meets one of the following qualifications:

(1) the taxpayer had a tax liability of at least $1 on the taxpayer’s 2021 tax return, or

(2) the taxpayer filed a full-year resident tax return for tax year 2020 under the identical filing status used on the taxpayer’s 2021 tax return and had a tax liability of at least $1, or

(3) the taxpayer filed a full-year resident tax return for tax year 2019 under the identical filing status used on the taxpayer’s tax returns for tax years 2020 and 2021 and had a tax liability of at least $1.

The DOR between October 15, 2023, and November 15, 2023, is required to issue a qualifying taxpayer a single rebate for up to three dependents who were claimed on the taxpayer’s 2021 tax return in the amount of:

•     $250 for each dependent who was under 17 years old at the end of tax year 2021; and
•     $100 for each dependent who was at least 17 years old at the end of tax year 2021.

For a taxpayer who claimed more than three dependents for tax year 2021, dependents who were under 17 years old at the end of tax year 2021 must be counted towards the three dependent cap before dependents who were at least 17 years old at the end of tax year 2021.

To maximize your tax benefits, you may also want to explore Arizona tax credits for individuals. These credits can provide additional savings and help reduce your overall tax liability.

For questions about your specific situation, contact your R&A advisor.