In 2018, thousands of Arizona taxpayers missed out on refunds or faced penalties simply because they filed late or made avoidable errors. The Arizona Department of Revenue consistently reports that missed deadlines and incorrect filings are among the reasons returns are delayed. For individuals and small business owners, these mistakes can lead to weeks or even months of waiting for money you are owed and costly interest charges that add up quickly.

Knowing how to file your Arizona tax return correctly is more than just a formality; it is a financial safeguard. Filing on time ensures you avoid unnecessary penalties, while accuracy helps you claim the maximum refund possible. The process goes beyond filling out forms — it requires carefully reviewing your income, deductions, and credits, and following state and federal requirements. Whether your return is simple or complex, the right approach can protect your money and give you peace of mind.

This guide provides a clear, step-by-step path for filing your 2018 Arizona individual income tax return. You will learn who must file, which forms to use, and the most critical deadlines. You will also find practical tips to prevent common filing errors and strategies to speed up your refund and stay in compliance with Arizona state tax laws. By following these instructions, you can take control of the process, meet your obligations confidently, and avoid the problems that delay or reduce refunds.

Who Needs to File an Arizona Tax Return

Not everyone in Arizona must file a state income tax return, but for 2018, the filing requirements were clear and specific. The Arizona Department of Revenue set income thresholds based on filing status. If your income meets or exceeds these amounts, you must file:

  • Single: Gross income of at least $15,000 or Arizona adjusted gross income (AZ AGI) of at least $5,500.

  • Married Filing Jointly: Gross income of at least $15,000 or AZ AGI of at least $11,000.

  • Married Filing Separately: Gross income of at least $15,000 or AZ AGI of at least $5,500.

  • Head of Household: Gross income of at least $15,000 or AZ AGI of at least $5,500.

These thresholds are based on your year's total income and Arizona-specific adjustments. They apply whether your income comes from wages, self-employment, or other sources. Small business owners should pay particular attention to these limits, since business and personal income are often combined for state tax purposes.

Remember that your Arizona return is closely linked to your federal return. Under federal law, Arizona uses your federal adjusted gross income as the starting point for calculating your AZ AGI. You must complete your federal return first, then transfer the relevant information to your Arizona forms. By understanding these requirements, you can ensure you meet state obligations, avoid penalties, and maximize any refund you are entitled to.

Important Deadlines for 2018 Filings

For the 2018 tax year, Arizona’s deadlines were fixed and strictly enforced. The original due date to file your state income tax return was April 15, 2019. If you filed for an extension, the deadline has been moved to October 15, 2019. These dates applied to both individuals and small business owners.

Missing these deadlines could be costly. Arizona charges a failure-to-file penalty of 4.5 percent of the tax owed for each month the return is late, up to a maximum of 25 percent. A failure-to-pay penalty of 0.5 percent per month applies if you do not pay the tax due by the original filing date. Interest is also added to any unpaid balance, calculated as a fraction of the amount owed for each day past the due date.

Filing on time matters even if you cannot pay your entire tax bill immediately. Submitting your return by the due date prevents the higher failure-to-file penalty from applying. You can then work with the Arizona Department of Revenue to arrange a payment plan and reduce interest costs. To stay compliant, mark these deadlines on your calendar, set reminders, and complete your return well before the due date. Filing early helps avoid penalties and shortens the time it takes to receive your refund.

Choosing the Correct Arizona Tax Form

Selecting the proper tax form is one of the most critical steps in filing your 2018 Arizona state return. The form you use depends on your income, deductions, credits, and filing status. Choosing incorrectly can lead to delays, rejected returns, or missed opportunities to claim credits. Arizona provides three primary forms for full-year residents designed for a different level of filing complexity:

Form 140EZ: Simplest Option

Form 140EZ is designed for taxpayers with the most straightforward situations. You can use it if you are single or married filing jointly and you and your spouse (if applicable) were full-year Arizona residents in 2018. Both you and your spouse must be under 65 and not blind, and you cannot claim any dependents or parent/grandparent exemptions. This form is only for those taking the standard deduction and not itemizing, with credits limited to the family income tax credit or the increased excise tax credit. Your Arizona taxable income must be less than $50,000, and you cannot be an active-duty military member.

Form 140A: Short Form

Form 140A is a step up from the 140EZ and is available to full-year residents with Arizona taxable income under $50,000. You must be a calendar-year filer and cannot itemize deductions. Your credits are limited to the family income tax credit, property tax credit, or increased excise tax credit. You also cannot claim estimated tax payments; this form is not for taxpayers receiving active-duty military pay.

Form 140: Standard Return

Form 140 is the most comprehensive option and is required if your Arizona taxable income is $50,000 or more. You must also use it if you claim active-duty military pay, have income adjustments, or plan to itemize deductions. This form is necessary for anyone claiming tax credits beyond those available with the short forms or reporting estimated tax payments. It is also the preferred form for individuals or small business owners with multiple income sources, complex deductions, or broader credit claims.

Tip for Small Businesses: If you have self-employment income, rental property income, or multiple income sources, Form 140 is generally the most appropriate choice since it allows for itemized deductions, adjustments, and broader credit claims. Selecting the correct form helps ensure your return is processed smoothly and your credits are applied immediately.

Step-by-Step Instructions to File Your 2018 Return

Filing your Arizona state income tax return involves more than just filling in numbers. By following these steps, you can complete your 2018 return accurately, avoid costly mistakes, and improve your chances of receiving your refund without delays.

Step 1: Gather All Required Documents

You cannot start without having the correct paperwork on hand. Collect:

  • Income forms: W-2s from employers, 1099s for freelance or investment income, and retirement distribution statements.

  • Business income records: Schedule C if self-employed, rental property income, and expenses.

  • Deduction records (if itemizing): Mortgage interest (Form 1098), property tax bills, charitable contribution receipts, medical expense documentation, and state and local tax payment records.

  • Tax credit documentation: Receipts for school contributions, foster care charity donations, and dependent care expenses.

Step 2: Complete Your Federal Return First

Arizona starts with your federal adjusted gross income (AGI). You must finish your federal return before beginning your Arizona return. This ensures the income figures match and prevents errors that could cause delays.

Step 3: Select Your Filing Status

Arizona recognizes these statuses:

  • Single

  • Married Filing Jointly

  • Married Filing Separately

  • Head of Household

Important: Arizona is a community property state. If you are married and living separately, you must report half of all community income plus your separate income.

Step 4: Enter Your Personal Information

Use your legal name, Social Security Number, and current address as shown on your Social Security card. For joint returns, enter SSNs in the same order as the names appear.

Step 5: Report Income and Adjustments

  • Transfer your federal AGI to your Arizona form.

  • Make any Arizona-specific additions or subtractions:


    • Subtractions: Interest from U.S. government obligations, Social Security benefits, railroad retirement benefits, active-duty military pay, and income earned on certain reservations.

    • Additions: Income is taxable in Arizona and not included on your federal return.

Step 6: Choose Your Deduction Method

  • Standard deduction for 2018: $5,312 (Single/Married Filing Separately) or $10,613 (Head of Household/Married Filing Jointly).

  • Itemize deductions if your total exceeds the standard amount. Complete and attach Schedule A to Form 140 if itemizing.

Step 7: Claim Exemptions

Enter the number of exemptions you qualify for:

  • Age 65 or over.

  • Blindness.

  • Dependent exemptions.

  • Qualifying parent/grandparent exemptions.

Step 8: Calculate Tax and Apply Credits

  • Use the Arizona tax tables or computation worksheet to determine your tax.

  • Subtract credits you are eligible for:


    • Family income tax credit.

    • Property tax credit.

    • School tuition and charitable contribution credits.

    • Other applicable credits.

Step 9: Determine Your Refund or Amount Owed

  • Compare your total tax to the amount already paid through withholding and estimated payments.

  • If you overpaid, you will receive a refund.

  • If you owe, arrange payment to avoid interest and penalties.

Step 10: Review Your Return

Before you file:

  • Double-check math and ensure Arizona AGI matches your federal AGI after adjustments.

  • Confirm exemptions are entered correctly.

  • Ensure all forms and schedules are attached.

  • Verify that both spouses sign if filing jointly.

Step 11: File Your Return

  • E-File: Recommended for faster processing, built-in error checking, and connection security.

  • Paper Filing: If mailing, use the correct address depending on whether a payment is enclosed. Send copies, not originals, of your supporting documents.

Following these steps carefully can save time, reduce stress, and improve your chances of claiming the maximum refund allowed under Arizona’s 2018 tax rules.

Filing Methods: E-File vs. Paper Filing

Arizona offers two ways to file your 2018 tax return. Your chosen method can affect how quickly your return is processed, how secure your information is, and how soon you receive your refund.

E-File (Electronic Filing)

Filing online is the fastest and most reliable method for individuals and small business owners.

Advantages:

  • Faster processing: Refunds are usually issued within 4–6 weeks.

  • Built-in error checking: Many mistakes are flagged before submission.

  • Security of your connection: Encrypted systems protect sensitive data.

  • Immediate confirmation: You will know immediately that your return has been received.

  • Convenience: You can file from home or office at any time.

How to E-File:

  • Visit the Arizona Department of Revenue’s approved e-file providers list on azdor.gov.

  • Choose a provider that supports your form type and situation.

  • Follow prompts to complete and submit your return.

Paper Filing

Filing by mail is still an option, but it takes longer and carries more risk of delays.

Considerations:

  • Slower processing: Paper returns can take 8–12 weeks or more.

  • Manual review: Increases the chance of delays if documents are missing or unclear.

  • Mail security risks: Use certified mail for added tracking and proof.

How to Paper File:

  • Print and complete the appropriate Arizona tax form.

  • Attach all required schedules and documentation.

  • Mail to the correct address:

Without Payment:
Arizona Department of Revenue  

P.O. Box 52138  

Phoenix, AZ 85072  

With Payment:
Arizona Department of Revenue  

P.O. Box 52016  

Phoenix, AZ 85072  

Tip: Even if you prefer mailing, complete your return early. Late mailing near the deadline increases the risk of missing the shown date due to postal delays.

How to Pay Your Tax or Receive Your Refund

Once your 2018 Arizona tax return is complete, the final step is settling any balance due or tracking the refund you are owed. Acting quickly helps you avoid interest charges and ensures your refund arrives in the shortest possible time.

Electronic Payments

The fastest method is paying online through AZTaxes.gov. This platform offers built-in connection security and requires verifying you are human before submitting payment details. Options include:

  • ACH (Electronic Funds Transfer): Direct debit from a checking or savings account.

  • Credit or Debit Card: Visa, MasterCard, American Express, or Discover. Service fees may apply.

During payment, you may be prompted to confirm your identity by completing the action on a verification screen. This process protects your information and allows the system to review the security of your transaction before it is accepted.

Paper Payments

If you prefer mailing a check or money order, make it payable to “Arizona Department of Revenue” and include your Social Security Number and tax year. Send it with the voucher to the “with payment” address in Section 5. If you cannot pay in full, make a partial payment to reduce interest. Arizona calculates this as a fraction of the unpaid tax each day after the due date. You can also request an installment plan online or by mail.

Receiving Your Refund

Direct Deposit

E-filers typically receive refunds via direct deposit within 4–6 weeks, while paper filers may wait 8–12 weeks or more. Ensure your banking information is correct to avoid delays.

Where’s My Refund Tool

Check your refund status at AZTaxes.gov. You will need your SSN, filing status, ZIP code, and tax year. The system may display a "verification successful" waiting message if your refund is being processed, along with updates on its status. By choosing the fastest payment or refund method and keeping deadlines in mind, you can avoid unnecessary delays and stay in control of your state tax obligations.

Common Mistakes to Avoid

Even minor errors can delay your refund or lead to unnecessary penalties. When filing your 2018 Arizona tax return, keep these common issues in mind:

1. Incorrect Income or Exemption Entries

Your Arizona adjusted gross income must match your federal return after state adjustments. Errors here often trigger system checks that may display a need to review the notice before processing continues.

2. Missing or Incomplete Forms

Leaving out schedules or credit documentation can slow processing. E-file systems may flag missing items with a performance security check to confirm you have attached all required forms.

3. Signature and Identity Problems

Joint returns require signatures from both spouses. For e-filed returns, you might see prompts such as human by completing or ray ID to verify your identity before submission.

4. Wrong Mailing Address

Paper returns sent to the wrong address can be delayed for weeks. Always check the most recent state mailing list to ensure you send your documents to the correct location.

5. Incomplete Online Submission

If you stop before completing your e-file submission, your return is not considered filed. Some systems will display a "connection before proceeding" alert, requiring you to recheck your details and respond to verification steps.

By avoiding these mistakes, you reduce the risk of delays and keep your refund on schedule. Careful review before you file is the simplest way to ensure smooth processing and accurate results.

Final Filing Checklist

Before you send off your 2018 Arizona tax return, take a few minutes to go through this quick checklist. A final review can prevent delays, reduce errors, and ensure your refund or payment is processed smoothly.

Confirm Personal and Filing Details

  • Names, Social Security Numbers, and addresses match official records.

  • Filing status is correct for your situation.

Review Income and Deductions

  • Arizona's adjusted gross income matches federal figures after adjustments.

  • Deductions and credits are entered correctly, and supporting documentation is attached.

Check Attachments and Signatures

  • All required forms and schedules are included.

  • Both spouses sign joint returns.

Test Your E-File Submission

  • Complete all verification steps; a successful verification message should appear before final submission.

  • Maintain a secure internet connection until you receive confirmation that your return has been filed.

Mailing a Paper Return

  • Use the correct address for with or without payment.

  • Include a payment voucher if you owe tax.

This checklist can help you avoid last-minute problems and keep your return moving through the system without unnecessary delays.

Frequently Asked Questions (FAQs)

What does “verification successful waiting” mean when I check my refund status?

This message usually appears when your Arizona tax return has passed identity checks but is still in the queue for final processing. This means the system has confirmed your information, but your refund has not yet been approved for release. Continue monitoring the status online; updates can take a few days depending on the volume of processed returns.

Why am I seeing a “ray ID” message during e-filing?

A “ray ID” is an internal tracking code the online filing system uses to monitor and secure your session. It helps the system verify your connection and detect potential issues during submission. If you see this message, it usually means the system has logged your attempt and may perform additional checks before accepting your return.

Does the IRS process my Arizona tax return?

No, the IRS only processes federal tax returns. The Arizona Department of Revenue handles your Arizona state return. However, your state filing begins with information from your federal return, such as your federal adjusted gross income. You must complete your IRS filing first so your Arizona return can be accurately calculated and submitted without conflicts.

What should I do if the system keeps asking for verification?

If you are repeatedly prompted for verification, your submission may be incomplete, or the system needs additional confirmation of your identity. Double-check that you’ve provided accurate personal information and that your internet connection is stable. Completing the verification steps ensures your return can be processed without further delays or manual review by the tax department.

Will a pending IRS refund delay my Arizona refund?

A pending IRS refund usually will not delay your Arizona refund. State returns are processed separately. However, adjustments or identity verification issues with your federal filing could slow down state processing if the Arizona Department of Revenue needs to verify the exact details. Filing accurate and matching returns for both levels reduces this risk.