What Are the Arizona Standard Deduction Amounts?

The Arizona standard deduction is a fixed dollar amount that taxpayers can subtract from their adjusted gross income (AGI), reducing the total income subject to state tax. Opting for the standard deduction provides a straightforward method for tax reduction without the need to calculate and document individual deductible expenses. This approach is an alternative to itemizing deductions, which involves a more detailed accounting of specific expenditures.

Arizona Standard Deduction Amounts for 2024

For the 2024 tax year, the Arizona Department of Revenue has set specific standard deduction amounts based on a taxpayer’s filing status. If your filing status is Single or Married Filing Separately, the standard deduction is $14,600. For those filing as Head of Household, the amount increases to $21,900. Married couples who file a joint return are entitled to a standard deduction of $29,200.

Eligibility for the Standard Deduction

A significant regulation impacts married couples who choose to file separate state tax returns. In this scenario, both spouses must make the same choice; either both must claim the standard deduction, or both must itemize their deductions. One spouse cannot take the standard deduction if the other has chosen to itemize.

Arizona law also provides for higher standard deduction amounts for certain taxpayers. Individuals who are 65 or older or who are considered legally blind can claim an additional amount on top of their base standard deduction.

Comparing Standard vs Itemized Deductions

Deciding between the standard deduction and itemizing requires comparing which method yields a greater reduction in your taxable income. Itemized deductions are a collection of specific, eligible expenses that you can total up and subtract from your AGI. To make an informed choice, you must calculate the total of your potential itemized deductions and see if it exceeds the standard deduction available for your filing status.

Common expenses that can be itemized on an Arizona tax return include:

• Home mortgage interest
• Property taxes
• State and local taxes paid
• Charitable contributions made to qualified organizations

You may also deduct 100% of your medical and dental expenses, which differs from the federal rule requiring these costs to exceed a percentage of your AGI. Notably, Arizona allows taxpayers who take the standard deduction to also deduct 33% of their qualified charitable contributions for the 2024 tax year.

If the sum of all your potential itemized deductions is greater than your standard deduction amount, choosing to itemize will lead to a lower state tax liability. For example, if a married couple filing jointly calculates their itemized deductions to be $31,000, they would benefit from itemizing, as this is higher than their $29,200 standard deduction.