Grand Canyon Times

Arizona families will soon see financial relief as a tax rebate, championed by state Republicans, is set to roll out this month. The rebate comes under Senate Bill 1734, passed by the fifty-sixth legislature during its first regular session. Despite opposition from Governor Hobbs, Republicans in both the House and Senate pushed for using part of the state's surplus to provide targeted tax rebates.

The motivation behind this initiative is to assist families facing economic challenges due to inflation. According to supporters, "Gas, groceries, housing – all of these essentials have gone up over the past three years due to reckless federal policies coming out of Washington."

The rebate offers $250 per dependent under age 17 and $100 per dependent over age 2017 based on their 2021 returns. There is a limit of three dependents per taxpayer with a maximum rebate cap at $750.

Eligibility for the rebate includes taxpayers who paid at least $1 in individual income tax on their returns from 2019 through 2021 and claimed Arizona's dependent tax credit in 2021.

Regarding taxation on these rebates, they are not subject to state income taxes. However, whether they are subject to federal income taxes remains unclear until a determination is made by the Internal Revenue Service (IRS). The Arizona Department of Revenue has contacted the IRS for clarification and will update accordingly once feedback is received.

Rebates will be issued via direct deposit if taxpayers provided such information on their recent returns. Otherwise, paper checks will be sent to their last known address or can be claimed online if necessary.

For further details or inquiries about the rebate process, Kim Quintero from the Arizona State Senate Republican Caucus can be contacted at kquintero@azleg.gov.