$750 Tax Rebate from Arizona Coming: Who Will Get It?

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Thousands of Arizona families can expect to receive some extra money in the coming weeks through the Arizona Families Tax Rebate. The Arizona Department of Revenue said that about 743,000 taxpayers could receive up to $750 in tax rebates from Arizona by the end of this month.

Tax rebate from Arizona: who will get it?

Gov. Katie Hobbs, earlier this year, approved the $17.8 billion budget, which included $260 million to send a rebate to year-round residents who claimed the state’s existing tax credit for dependents, as well as filed their state income tax return for 2019, 2020 or 2021.

A family with a tax liability of at least $1 in any of these years will receive a rebate of $250 for each child 17 or younger in 2021, for a maximum of three, i.e., up to $750. Taxpayers with dependents over 17 years will get $100, with a maximum of $300.

Only taxpayers with dependents in 2021 are eligible for the tax rebate from Arizona. New parents in 2022 don’t qualify for the rebate. Moreover, those who made donations big enough to eliminate their tax liability also do not qualify for the rebate.

Taxpayers don’t need to do anything to receive the rebate. The department will automatically issue the rebate to taxpayers who meet the requirements based on their most recent tax information. Eligible taxpayers will receive the rebate through direct deposit or via paper check in the mail.

The Arizona Department of Revenue will start issuing the rebate after October 30, and expects to send all the rebates by November 15.

Why was the rebate plan approved?

The state budget was a problematic issue this year as the Republican-majority Legislature negotiated hard to reach a consensus with the Democratic governor and individual lawmakers. To reach a consensus, lawmakers were allowed to use a part of the state’s $2 billion-plus surplus on their priorities.

Members of the Freedom Caucus, however, used the money (totaling about $260 million) to send rebates to provide relief to residents amid high inflation.

“I’m proud of the leadership of the Arizona Freedom Caucus, and for the support of our Republican colleagues, to dedicate $260 million to helping struggling Arizona families,” Senator Jake Hoffman said when announcing the rebate.

The budget didn’t include certain provisions that Governor Hobbs wanted, including sending a $100 tax rebate to low-income families (costing about $50 million), and eliminating a sales tax on diapers and period products (would have saved women and families $40 million a year).

Republicans approved the tax rebate plan versus the one proposed by Hobbs because the former gives back money to those who actually paid taxes.