How to File Tax Return in Arizona for 2015

Filing your 2015 Arizona tax return might seem like a daunting task, but understanding the process can make it a lot simpler. Whether you're an individual taxpayer, a sole proprietor, or a small business owner, filing your state tax return is essential for maintaining compliance with Arizona tax laws. It's not just about meeting deadlines—filing can also help you claim refunds or ensure you're paying the right amount of tax based on your income and deductions.

The first step to a successful filing procedure is knowing how to submit your taxes in Arizona. In 2015, all Arizona citizens must follow the state's tax requirements, forms, and deadlines, whether they live there full-time or part-time. Knowing these rules, you may file your taxes electronically or on paper. Make sure you follow the rules, avoid penalties, and get any available tax credits.

This guide will help you grasp everything you need to know about submitting your Arizona tax return for 2015, including who needs to file, crucial deadlines, and mistakes to avoid. Let's start by looking at who has to file. 

Who Needs to File a 2015 Arizona Tax Return?

Before diving into the filing process, knowing whether you must file an Arizona tax return for 2015 is essential. Arizona’s tax laws set specific income thresholds based on your filing status. Below are the income limits for various filing statuses:

  • Single: If your Arizona Adjusted Gross Income (AGI) is at least $5,500, or your total gross income from all sources is $15,000 or more, you must file.
  • Married Filing Jointly: A return is required if your AGI is at least $11,000 or your combined gross income from all sources is $15,000 or more.
  • Married Filing Separately: Similar to single filers, your AGI must be at least $5,500, or your gross income must be $15,000 or more.
  • Head of Household: You must file if your AGI is at least $5,500 or your gross income from all sources is $15,000 or more.

Even if your employer has already withheld taxes, filing is still necessary, especially if you want to receive a refund for any Arizona income tax that was withheld. Additionally, it’s a good idea to file if you qualify for any tax credits, such as the property tax refund or deductions for donations to qualifying charitable organizations.

You are not required to file if you don’t meet these thresholds. However, it’s often beneficial to file regardless, as you may be eligible for a refund or other financial benefits.

Key Dates and Deadlines for Arizona Tax Filing in 2015

Filing your Arizona tax return on time is essential to avoid penalties and interest. For the 2015 tax year, there are several key dates to remember:

  • Filing Deadline: The final day to file your 2015 Arizona tax return was Monday, April 18, 2016. This deadline was extended from April 15 due to Emancipation Day, which is observed in Washington, D.C.
  • Extension Deadline: If you need more time to file your return, you can request an extension. The extension deadline was October 17, 2016. Remember that an extension gives you more time to file, but not more time to pay any taxes owed.
  • Estimated Tax Payments: If you’re self-employed or have income that isn't subject to withholding, you may need to make quarterly estimated tax payments. The due dates for estimated payments in 2015 were
    • April 15, 2015
    • June 15, 2015
    • September 15, 2015
    • January 15, 2016

Meeting these deadlines is crucial to avoid additional charges like penalties and interest. If you filed after the deadline or missed one of the estimated tax payments, you may be subject to late payment penalties. If you have concerns about making timely payments, please contact the Arizona Department of Revenue to discuss payment plan options.

Overview of Key Changes for 2015 Arizona Tax Filing

The 2015 tax year brought several changes that Arizona taxpayers should be aware of. These updates may affect your filing process and help you save money or adjust your filing strategy. Let’s take a look at some of the key changes for 2015:

  1. Standard Deduction Adjustments: For 2015, the standard deduction was adjusted for inflation. The new deduction amounts are
    • $5,091 for single or married filing separately
    • $10,173 for head of household or married filing jointly
  2. This adjustment could result in a lower taxable income for eligible taxpayers, meaning you could owe less or receive a larger refund.
  3. Credit for Increased Excise Taxes: The Credit for Increased Excise Taxes requires that taxpayers have a valid Social Security number (SSN) issued by the IRS for employment. This change ensures that only those with valid identification can claim the credit.
  4. Net Long-Term Capital Gain Subtraction: If you sold long-term capital assets (like stocks or real estate) acquired after December 31, 2011, you could subtract up to 25% of the net capital gain from your taxable income. This is an increase from previous years, which could reduce your overall tax liability.
  5. Expanded Charitable Contribution Credit: In 2015, Arizona expanded the credit for donations to qualifying charitable organizations to include donations made to qualifying foster care organizations. This expansion offers taxpayers more opportunities to reduce tax liability by donating to eligible organizations.
  6. Repeal of the Credit for Qualified Health Insurance Plans: Effective December 31, 2014, the Credit for Qualified Health Insurance Plans was repealed. You can't claim this credit for 2015 if you did in prior years.

These changes could affect your deductions and credits for the 2015 tax year, so it's important to stay informed and ensure you’re taking full advantage of all available opportunities.

Step-by-Step Guide on How to File Your 2015 Arizona Tax Return

Filing your Arizona tax return for 2015 can seem overwhelming, but breaking it down into steps can make the process much more manageable. Whether you are filing as an individual, a part-year resident, or a business owner, here’s a step-by-step guide to help you through the process.

1. Gather Necessary Documents

Before you start, ensure you have all the required documents. These typically include:

  • Employers' income is displayed on W-2 forms.
  • 1099 forms for additional income like interest, dividends, or freelance work.
  • Your completed federal tax return for 2015 will help determine your Arizona taxable income.
  • Social Security numbers for you, your spouse, and any dependents you claim.
  • Documentation for deductions or credits you plan to claim (e.g., charitable contributions, school donations).

2. Choose the Correct Arizona Tax Form

Depending on your residency and tax situation, you will need to use one of the following forms:

  • Form 140: For full-year Arizona residents.
  • Form 140PY: For part-year residents who moved into or out of Arizona during the year.
  • Form 140NR: For nonresidents with Arizona-source income.
  • Form 140EZ: For simple returns with fewer deductions or credits.

3. Fill Out Your Personal Information

Once you've selected the correct form, start by entering your personal information, including

  • Your name, address, and Social Security number (SSN).
  • Specify your filing status (single, married filing jointly, etc.).
  • Exemptions: Indicate how many exemptions you claim for yourself, your spouse, and any dependents.

4. Report Your Income

The next step is to report your total income. Enter your federal adjusted gross income (AGI) from your tax return. Arizona will adjust this figure by adding or subtracting specific amounts based on state-specific rules. For instance, some income is taxable in Arizona but not federally, or vice versa.

5. Claim Deductions

You can either claim the standard deduction or itemize deductions if your total itemized deductions are higher. Some standard deductions for Arizona residents include

  • Charitable contributions to qualifying organizations.
  • School contributions to public and private schools.

6. Apply Tax Credits

Arizona offers a range of tax credits that could reduce your tax liability, including:

  • Charitable donation credits (up to $400 for married filing jointly).
  • Tax credits for contributions to private school tuition organizations.
  • Tax credits for donations to qualifying foster care organizations.

7. Calculate Your Arizona Tax Liability

After applying any deductions and credits, you will calculate your total tax liability. Arizona uses a progressive tax system, so the more income you report, the higher your tax rate will be. Ensure you’ve entered all figures correctly to avoid errors.

8. Review Your Return

Before submitting your tax return, double-check all the information:

  • Verify your SSNs and other personal details.
  • Ensure you’ve entered all income correctly.
  • Review your tax credits and deductions to ensure you didn’t miss any eligible amounts.
  • Ensure you’ve signed the form and included all required supporting documentation (W-2s, 1099s, etc.).

9. Submit Your Return

Once you have completed everything, you can choose one of the following filing options:

  • E-file: The fastest and most secure option. Arizona offers free e-filing for qualifying taxpayers.
  • Paper filing: If you prefer, you can mail your return to the Arizona Department of Revenue.

10. Pay Any Taxes Due

If you owe taxes, pay them by the filing deadline (April 18, 2016) to avoid penalties and interest. Payment options include:

  • You can make an electronic payment using an e-check or a credit card.
  • You can also opt for a traditional payment method, such as a check or money order.

How to File Your Arizona Tax Return: E-filing vs. Paper Filing

Choosing how to file your 2015 Arizona tax return is an important decision that can impact the speed and security of your filing. You can file your return either electronically (e-filing) or by paper. Each method has pros and cons, so let's explore both options.

E-filing: The Fast and Secure Option

E-filing is the most common way to file tax returns; you can use it for income tax returns and other forms. Filing online is faster, makes your connection more secure, and ensures that your return is completed more swiftly. If you decide to e-file, make sure you are a real person by acting to prove your identity. This step is necessary to finish the action and return your return correctly.

E-filing also checks that you waited long enough, so you'll get an instant confirmation that your return has been accepted. You can also pick direct deposit for your refund, which will get it to you as soon as possible. Many people who file their taxes online like it because it has built-in error checking that lowers the risk of making mistakes.

Both the IRS and Arizona provide safe filing websites. These sites utilize strong encryption to keep your information secure. Before you file online, always ensure your connection is safe. This will help keep your private information safe.

Paper Filing: The Traditional Method

While e-filing is faster and more secure, some taxpayers still prefer to file by paper. Paper filing involves hand-filling out the necessary forms and mailing them to the Arizona Department of Revenue. This method can be slower, especially during peak filing season, and you won’t receive immediate confirmation of your filing.

Paper filers must review the forms carefully to ensure all the required information is included. Attach all supporting documents, such as W-2s and 1099s, to avoid delays. When submitting paper forms, there is also no option for payment through direct deposit, so you’ll need to send a check or money order for any balance due.

If you are using paper filing, ensure the connection between you and the Department of Revenue is secure when mailing the documents. Although it's not an immediate concern like e-filing, responding promptly if the Department requests additional information or documentation is essential.

Payment Methods for Arizona Tax Returns

When it comes time to pay your Arizona tax liability, several options are available to ensure your payment is submitted securely and on time. Whether you owe taxes or simply submit your property tax refund, understanding your payment methods is essential to the filing process.

Electronic Payment Options

The Arizona Department of Revenue provides multiple ways to file payments electronically, offering taxpayers a quick and secure process. The two most common methods are:

  1. E-check: This free option lets you transfer funds directly from your bank account to the Arizona Department of Revenue.
  2. Credit Card: You can pay your taxes online using Visa, MasterCard, Discover, or American Express. A convenience fee will apply when paying by credit card.

Both methods secure your connection, so your payment info is safe. If you choose to use IRS services for payment, these options integrate seamlessly with the Arizona Department of Revenue's system. Always check the site's security and make sure your connection is secure before completing your payment.

Traditional Payment Methods

If you prefer to pay by mail, you can send a check or money order to the Arizona Department of Revenue. Make your payment payable to the “Arizona Department of Revenue” and include your Social Security number (SSN) and “2015 tax” on the payment to ensure it is processed correctly.

This approach is the traditional route for taxpayers who don’t have access to online payment methods or prefer paper over electronic options. While the technique is secure, it’s essential to mail your payment well in advance of the filing deadline to avoid any fees paid for late payments.

Security and Verification

Regardless of the payment method, always verify your connection before proceeding. Especially when using an online service, you should confirm the security of your connection to prevent any issues with successful human verification waiting. If you’re uncertain, look for visual cues on the website, such as a padlock symbol or "https://" at the start of the web address.

How to Request an Extension for Your Arizona Tax Return

If you cannot file your Arizona tax return by the deadline of April 18, 2016, you can request an extension to give yourself more time to prepare your return. An extension gives you more time to file, but not to pay taxes owed. You must still pay at least 90% of your tax liability by the original due date to avoid penalties and interest.

How to Request an Extension

To request an extension for filing your 2015 Arizona tax return, you must file Form 204 with the Arizona Department of Revenue by the April 18 deadline. The form is simple to complete and grants an automatic six-month extension to October 17, 2016.

Alternatively, if you’ve already filed for a federal extension using IRS Form 4868, Arizona will automatically accept that extension without needing to submit Form 204. However, you must verify you are human by completing the required verification process when submitting your extension request online.

Paying During an Extension

If you believe you will owe taxes, make a payment when filing your extension. While you can delay the submission of your return until October, any tax payments must be made by the original deadline to avoid penalties. You can make payments through the same options as regular filing—via e-check, credit card, or traditional methods.

Connection and Security Considerations

Whether you're filing an extension electronically or on paper, ensure the security of your connection when submitting your request. Furthermore, always review the website's or mailing method's security to avoid security breaches or potential identity theft.

Common Mistakes to Avoid While Filing Your Arizona Tax Return

Filing your Arizona tax return can be detailed; even minor errors can lead to delays or additional costs. To help you file correctly and efficiently, here are some common mistakes to watch out for:

1. Math Errors

One of the most common mistakes is simple math errors, especially when adding or subtracting figures. Ensure all your income tax return calculations are correct before submitting your form. E-filing can minimize these errors since many platforms have built-in error-checking features.

2. Incorrect Filing Status

Select the correct filing status (single, married filing jointly, etc.), as this will determine your tax rate and eligibility for certain credits. If your filing status does not match the one on your federal tax return, it could result in processing delays.

3. Missing Signatures

Please sign and date your forms if you're filing a paper return. Both spouses must sign a joint return. If you are filing electronically, please verify that you are human by completing the necessary online steps. Missing signatures will delay the processing of your return.

4. Incorrect Social Security Numbers

Double-check that your Social Security number (SSN) is correct on all forms, including your spouse's SSN (if applicable) and any dependents. Incorrect SSNs can result in delays or rejection of your tax return.

5. Not Attaching Required Documents

Ensure all required W-2s, 1099s, and other forms are attached to your return. If you're claiming deductions for charitable donations, school contributions, or other credits, include the appropriate documentation for these as well.

6. Failing to Review the Security of Your Connection

If you file online, ensure your website is secure before entering personal information. Individual applicants must constantly review the website's security and ensure they use a secure internet connection, especially when dealing with sensitive information like their property tax refund or IRS details.

7. Forgetting to File on Time

Ensure you file before the due date, as late filings may incur penalties and interest. If you need more time, remember that you can file for an extension. However, ensure you still pay any owed taxes by the original deadline to avoid penalties.

Frequently Asked Questions (FAQs)

What does "completing the action" mean in the Arizona tax filing?

"Completing the action" refers to successfully finishing all necessary steps when filing your Arizona tax return, whether online or by mail. This includes submitting your forms, verifying your correct information, and confirming the filing. If you're e-filing, completing the action typically means receiving confirmation that the Arizona Department of Revenue has accepted your return.

What is a Ray ID in the Arizona tax filing process?

A Ray ID is a unique identifier used by the Arizona Department of Revenue’s online system. It helps track the status of your e-filing process and ensures that your return or request is routed correctly. You can use the Ray ID to resolve issues or delays and provide a more efficient follow-up process.

What instructions should I follow when filing my Arizona tax return?

When filing your 2015 Arizona tax return, it's crucial to carefully follow the instructions provided with the tax forms. These instructions will guide you through the required steps, including how to report income, claim deductions, and apply credits. Read the instructions thoroughly to avoid errors and ensure your filing is accurate.

How do I know if my Arizona tax return needs to be reviewed?

If your Arizona tax return requires further review, the Department of Revenue will notify you. Common reasons for review include discrepancies in income, deductions, or credits. It’s essential to watch for any communications from the department, as they may request additional documentation or clarification before processing your return.

What happens if I miss following the instructions while filing my Arizona tax return?

Failing to follow the instructions when filing your Arizona tax return can result in delays or penalties. Reject or delay the return if you miss steps like submitting required forms, incorrectly calculating deductions, or not including necessary attachments. Make sure to carefully review and adhere to each instruction to prevent any complications.