Tax rebate sent to some Arizona families subject to federal tax: ADOR

The tax rebate involves a one-time payment of up to $750 for those who are eligible. Now, state officials say the money will be considered as taxable by the federal government.

Officials with the Arizona Department of Revenue announced on Jan. 16 that those who received the Arizona Families Tax Rebate will need to report the rebate. “The IRS has determined the Arizona Families Tax Rebate recently sent to eligible taxpayers is subject to federal income tax and is required to be reported as part of the federal adjusted gross income,” read a portion of the statement The same statement said the tax rebate in question is not subject to Arizona income tax, and should be subtracted from the federal adjusted gross income on the 2023 Arizona individual income tax return. “Affected taxpayers will be sent a statement by mail that they are to check the online portal to access their 1099-MISC, which documents the rebate amount they received. ADOR is required by federal law to issue this form to taxpayers as an informational statement since the income must be reported on the income …

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