If you’re a resident of Arizona and owe money to the state’s Department of Revenue, you may qualify for Arizona tax relief. Although the Arizona Department of Revenue does not change its state tax relief program often, the IRS has extended deadlines for both individuals and businesses. For example, in Arizona, you must pay 90% of your outstanding tax liability by July 15, 2020. You may qualify for an extension of your federal tax deadline if you owe money to the IRS.
Tax reform protects veterans and small businesses, and it prevents a tax hike of 77.7% for small business owners. The government estimates that 99% of Arizona’s businesses are small businesses. The new tax law also cuts property taxes for small businesses by 10%. Additionally, the homeowner’s rebate will increase to cover half of their primary property taxes. The best part? The new tax law doesn’t affect K-12 education funding, so you’ll still be able to keep your tax refund.
In addition to lowering your taxes, you can take advantage of the Arizona Job Creation Tax Credit. This tax credit is worth up to $3,000 per qualified employment position. The credit is available to taxpayers who create a net new job within a year. You must apply for it if you’re a business that’s creating a minimum amount of capital or creating a net number of new qualifying jobs. However, the qualifications for urban and rural areas vary. You must provide a copy of your green card or visa as proof of your residency.