Davis Tax Services, LLP

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Arizona Tax News

Perhaps the most significant change for Arizona residents is that the state has passed (nearly) "full conformity," meaning that the Arizona return now follows federal rules. As a result, the state return no longer has personal exemptions and the standard deduction is now the same as the federal ($12,200 for singles, $24,400 for married couples).

In the past, Arizona had a remarkably low standard deduction, allowing many taxpayers to itemize deductions for the state even if they were nowhere near the level to itemize on the federal return. Starting with 2019, if you can't itemize for federal, you won't be able to itemize for Arizona.