How to File Your Arizona Tax Return for 2020: Step-by-Step Guide

Filing your 2020 Arizona tax return is essential to staying compliant with state laws and ensuring you receive any refund you are owed. The Arizona Department of Revenue requires that all full-year residents whose gross income exceeds $12,400 (single or married filing separately), $18,650 (head of household), or $24,800 (married filing jointly) submit a return. Part-year residents must report income earned while living in Arizona plus any Arizona-source income earned before or after moving, and non-residents must file if they received wages, rental income, or other payments from Arizona sources.

In response to the COVID-19 pandemic, Arizona extended its original April 15, 2021, filing deadline to July 15, 2021. This extension aligns with the federal relief measures and provides additional time to gather documents and verify your information without incurring penalties or interest. Whether you complete Form 140 as a resident, Form 140NR as a nonresident, or Form 140PY as a part-year resident, understanding the new deadline and forms will help you proceed smoothly.

Small business owners and sole proprietors must also account for their self-employment income on Schedule C and attach the relevant Arizona forms. Throughout this guide, you will find step-by-step instructions on verifying your federal adjusted gross income, choosing between the standard deduction and itemizing, calculating your tax liability, and submitting your return electronically or by mail. By following these instructions, you can ensure your 2020 Arizona tax filing is complete, accurate, and on time.

Overview of Arizona State Income Tax for 2020

Arizona’s state income tax system mirrors many federal principles but includes its thresholds, credits, and residency rules. Understanding who must file and how state filing ties to your federal return is the first step in accurate compliance.

Filing Thresholds

Single or Married Filing Separately: You must file an Arizona tax return if your 2020 gross income exceeded $12,400. This threshold ensures that those earning above the state’s standard deduction share in funding public services.
Head of Household: You must file if your gross income exceeded $18,650. This higher limit recognizes the additional financial responsibility of supporting dependents.
Married Filing Jointly: Couples must file when combined gross income exceeds $24,800. Filing jointly often yields tax benefits but requires reporting both spouses’ incomes together.

Residency Rules

Full-Year Residents: You lived in Arizona for all of 2020 and must report all income, both in-state and out-of-state, to the Arizona Department of Revenue. This comprehensive filing guarantees an accurate assessment of your state tax liability.
Part-Year Residents: You moved into or out of Arizona during the year and must report income earned while a resident, plus any Arizona-source income before or after residency. Apportioning income correctly avoids overpayment or underpayment of state tax.
Non-Residents: You lived elsewhere but earned wages, rental income, or other payments from Arizona sources and are required to file. This requirement ensures non-residents contribute state tax on Arizona-sourced earnings.

Key Changes in 2020

Extended Filing Deadline

Arizona moved the original April 15, 2021, deadline to July 15, 2021, in response to the COVID-19 pandemic. This three-month extension allowed taxpayers additional time to gather necessary documents and complete their returns without late-filing penalties.

Standard Deduction Increases

For the 2020 tax year, the standard deduction rose to $12,400 for single or married filing separately (up from $12,200), $18,650 for head of household (up from $18,350), and $24,800 for married filing jointly (up from $24,400). These increases help reduce taxable income for most filers, simplifying the decision between itemizing and claiming the standard deduction.

Charitable Contribution Rules

Arizona introduced special rules allowing larger cash contributions to qualifying charitable organizations to be claimed as subtractions on your state return. Taxpayers could leverage these enhanced limits to support nonprofit causes while lowering their taxable income.

Dependent Tax Credit Updates

The dependent tax credit remained at a maximum of $100 per qualifying child under age 17 and $25 per dependent age 17 or older, mirroring 2019 amounts but with streamlined reporting requirements. This credit directly reduces your tax liability dollar for dollar, making it a valuable family benefit.

What Forms to Use

Individual Income Tax Forms

Form 140 (Resident Personal Income Tax Return): This is the primary return for full-year Arizona residents to report all income and calculate state tax liability. Completing Form 140 ensures you include income from all sources—within and outside Arizona—and claim any applicable deductions or credits.
Form 140NR (Nonresident Personal Income Tax Return): Non-residents who earned wages, rental income, or other Arizona-source income use this form to report only that income. Filing Form 140NR guarantees you pay tax on in-state earnings without reporting out-of-state income.
Form 140PY (Part-Year Resident Personal Income Tax Return): If you moved into or out of Arizona during 2020, this form lets you apportion income between resident and nonresident periods. Using Form 140PY prevents overpayment or underpayment by taxing only the income earned while you were a resident, plus any Arizona-sourced income.
Form 140EZ (Resident EZ Personal Income Tax Return): Designed for simple returns—single or married filing jointly with no dependents, claiming the standard deduction, and meeting income thresholds—Form 140EZ streamlines filing. This version reduces paperwork and speeds up processing when your tax situation is straightforward.

Common Schedules & Credits

Schedule A (Itemized Deductions): Use Schedule A if your combined itemized deductions (charitable gifts, medical expenses, mortgage interest, and property taxes) exceed the standard deduction. Itemizing on Schedule A can lower your taxable income when you have significant deductible expenses.
Form 301 (Nonrefundable Individual Tax Credits): This summary covers family, dependent, and other nonrefundable credits you may qualify for. Completing Form 301 ensures you claim every dollar of credits that directly reduce your tax liability.
Form 321 (Charitable Contribution Credit): This credit allows up to $400 (single/HoH/MFS) or $800 (MFJ) for donations to qualifying charities, which you can subtract from your taxable income. This credit incentivizes philanthropy while lowering your tax bill.
Form 322 (Public School Credit): This form enables a credit of up to $200 (single/HoH/MFS) or $400 (MFJ) for donations to K–12 public schools in Arizona, directly reducing tax owed. This credit supports local education and rewards community contributions.
Form 323 (Private School Tuition Organization Credit): Offers a credit of $593 (single/HoH/MFS) or $1,186 (MFJ) for gifts to scholarship organizations, helping students afford private school tuition. Claiming this credit can significantly reduce your state tax liability.
Form 352 (Foster Care Credit): Grants up to $500 (single/HoH/MFS) or $1,000 (MFJ) for donations to qualifying foster-care charities, recognizing support for vulnerable children. This credit both aids foster-care organizations and lowers your taxable income.

Small Business Forms

Schedule C Reporting (Sole Proprietors): Sole proprietors report business income and expenses on federal Schedule C, then transfer net profit to Form 140. Accurate Schedule C reporting ensures your state return reflects your actual self-employment income.
Form 165 (Arizona Partnership Income Tax Return): Partnerships file Form 165 to report income, deductions, and credits, passing through gains or losses to individual partners. Filing this form ensures proper allocation of tax obligations among partners.
Form 120S (Arizona S Corporation Income Tax Return): S corporations use Form 120S to report business activity and distribute income, deductions, and credits to shareholders. Completing this form aligns state reporting with federal S corporation requirements.

Step-by-Step Instructions to Complete Your Return

Step 1: Gather Required Documents

Personal Information: Collect Social Security numbers and dates of birth for yourself, your spouse, and any dependents. This ensures you accurately complete identification fields and avoid processing delays due to mismatched or missing information.
Income Documentation: Gather all W-2s, 1099 forms (including 1099-MISC, 1099-NEC, 1099-G, and 1099-R), and payment, rental, or investment income records. Having these documents on hand lets you report every income source and prevents underreporting that could trigger audits or penalties.
Deduction and Credit Records: Assemble receipts for charitable contributions, property tax statements, mortgage interest statements (Form 1098), medical expense receipts, education expense records, and child-care invoices. Keeping these files organized lets you determine whether itemizing yields a larger tax benefit than the standard deduction and supports your claims in case of review.

Step 2: Complete Personal Information & Filing Status

Name and Address: Enter your full legal name and current mailing address as shown on your federal return. Consistent information between state and federal filings avoids processing errors and correspondence delays.
Social Security Numbers: Verify each Social Security number against your Social Security card to prevent typos. Incorrect SSNs can lead to rejection of your return or misapplied payments.
Filing Status Selection: Check the appropriate box for single, head of household, married filing jointly, or married filing separately. Choosing the correct status ensures you receive the proper standard deduction amounts and credits you qualify for.

Step 3: Report Federal AGI, Additions, and Subtractions

Federal Adjusted Gross Income (AGI): Copy your federal AGI from Form 1040, Line 11, to Form 140, Line 12. Using the exact AGI figure prevents discrepancies between your state and federal filings.
Additions to Income: Add non-Arizona municipal bond interest and other state-specified items on Lines 13–16. Including required additions ensures your state taxable income aligns with Arizona’s tax base.
Subtractions from Income: Subtract eligible items—such as Social Security benefits included in federal income, U.S. government bond interest, and up to $5,000 in Arizona state lottery winnings—on Lines 17–27. These subtractions reduce your state taxable income and can lower your overall tax liability.

Step 4: Choose Deductions

Standard Deduction: If you take the standard deduction, enter $12,400 for single or married filing separately, $18,650 for head of household, or $24,800 for married filing jointly on Line 43. This flat-rate deduction suits most taxpayers with uncomplicated financial situations.
Itemized Deductions: Use Schedule A if your total itemized deductions—charitable gifts, mortgage interest, medical expenses, and property taxes—exceed the standard deduction. Itemizing can yield greater tax savings for those with significant deductible expenses.

Step 5: Calculate Tax, Credits & Payments

Tax Calculation: Refer to the Arizona tax tables to determine your tax liability based on taxable income and enter the result on Lines 46–48. Accurate table lookups prevent underpayment penalties and interest charges.
Credits: Complete Forms 301, 321, 322, 323, and 352 as applicable to claim nonrefundable and refundable credits (dependent, family, charitable, school, and foster-care credits) on Lines 49–68. Each credit dollar directly reduces your tax owed, maximizing your potential savings.
Payments and Refundable Credits: Enter Arizona tax withheld from W-2s/1099s and any estimated payments made during 2020 on Lines 69–85. Summing these amounts determines whether you owe additional tax or are due a refund.

After completing these steps, review your entries for accuracy, sign and date the return (both spouses if filing jointly), and proceed to file electronically or by mail.

Common Mistakes to Avoid

Math Errors

Double-check all calculations, including addition, subtraction, and tax-table lookups, to prevent underpayment or delays. Simple arithmetic mistakes can trigger notices from the Arizona Department of Revenue and slow down processing.

Incorrect Social Security Numbers

Verify every Social Security number against the card to avoid typos. An incorrect SSN can lead to a rejected return or misapplied payments that delay your refund or leave your account showing a balance.

Missing Required Arizona Forms and Other Attachments

Ensure you include all W-2s, 1099s, schedules (such as Schedule A), and credit forms (Forms 301, 321–323, and 352). Omitting required documents can result in processing errors or disallowed deductions and credits.

Wrong Filing Status

Selecting an incorrect status—such as single instead of head of household or filing separately instead of jointly—can change your standard deduction amount and credit eligibility. Review your circumstances carefully to claim the most advantageous status.

Unsigned Returns

On paper filings, both spouses must sign joint returns. A missing signature invalidates the return, prompting the department to contact you and potentially imposing late-filing penalties.

Payment Plan Oversights

If you request an installment agreement but fail to make timely payments, penalties and interest continue to accrue. Always confirm your payment plan details on AZTaxes.gov and set reminders to avoid missed installments.

How to File Your Return

Electronic Filing

Electronic filing is the fastest and most accurate way to submit your Arizona tax return. Commercial tax software—such as TurboTax, H&R Block, or TaxAct—guides you through each line, automatically performs calculations, and validates real-time entries. If your 2020 adjusted gross income was below the IRS Free File threshold (generally around $72,000), you may qualify to file federal and state returns for free through Arizona’s Free File portal. Professionals—CPAs, enrolled agents, or authorized preparers—can also e-file on your behalf, ensuring complex returns are handled correctly. Once submitted, you will receive an immediate electronic acknowledgement confirming the Department of Revenue has accepted your return.

Paper Filing

To file via mail, download and print the appropriate form (Form 140, 140NR, 140PY, or 140EZ) along with any required schedules and credit forms. Complete each page legibly in blue or black ink, attach all supporting documents (W-2s, 1099s, schedules, and credit forms) to the front of your return, and ensure all required signatures and dates are provided. If you owe tax or include a payment voucher (Form 140V), mail your package to P.O. Box 52016, Phoenix, AZ 85072-2016. If you expect a refund or are not making a payment, send your return to P.O. Box 52138, Phoenix, AZ 85072-2138. Always retain a complete copy of your signed return and attachments for your records.

Verification Checks and Human Review

After you e-file and see “Return Accepted,” always review the security of your connection before proceeding. The system may prompt you to verify you are human by completing the action, usually an on-screen CAPTCHA or identity check. Following these steps ensures your authentication proceeds without interruption. Contact a human representative to complete the action if you encounter Ray ID errors or stalled progress.

How to Make a Payment

Electronic Payment: You can pay your 2020 Arizona tax liability online through AZTaxes.gov by authorizing an electronic funds withdrawal from your checking or savings account when you file. This option processes payments immediately and provides an electronic confirmation number for your records, ensuring your payment is correctly credited without delay.
Credit or Debit Card: If you prefer to use a credit or debit card, AZTaxes.gov will redirect you to an approved processor where you can complete the transaction. Be aware that convenience fees apply based on your payment amount, but this method offers the flexibility to use a card and still meet your tax obligations on time.
Check or Money Order: Make your check or money order payable to “Arizona Department of Revenue” and include your Social Security number and “2020 tax” on the memo line. Enclose Form 140V (Payment Voucher) with your payment and mail both to P.O. Box 52016, Phoenix, AZ 85072-2016, so the department can accurately apply your payment to the correct return.
Payment Plan: If you cannot pay the full balance by July 15, 2021, you may request an installment agreement online at AZTaxes.gov or by calling (602) 255-3381. Approval depends on your outstanding balance and payment history. While you receive a monthly payment schedule, interest continues to accrue daily, so paying more than the minimum reduces your total interest cost.
Payment Deadlines and Fees Paid: To avoid late penalties and interest, all individuals must submit payment by July 15, 2021. Keep track of any fees paid when using electronic or card payment methods. Adjust any offsets before finalizing your payment if you received a property tax refund during the year.

How to Track Your Refund or Balance Due

Online Refund Status

You can check the status of your Arizona refund by visiting the “Where’s My Refund” tool on AZTaxes.gov. Enter your Social Security number, filing status, and the refund amount shown on your return to receive real-time updates on whether your refund is pending, approved, or issued. This online portal is available 24/7 and provides the fastest way to confirm your refund’s progress without waiting on hold.

Phone Status Checks

If you prefer to speak with a representative or cannot access the online system, call the Arizona Department of Revenue at (602) 255-3381. The automated refund hotline operates Monday through Friday from 8:00 a.m. to 5:00 p.m. You can contact a live agent to look up your refund or balance-due details if you need further assistance.

Typical Processing Times and Delays

E-filed returns are generally processed within eight to twelve business days, while paper returns can take eight to twelve weeks. Delays may occur if your return contains errors, requires identity verification, or includes credits that trigger additional review. Filing early in the season and choosing e-filing with a direct deposit can minimize your wait time and ensure you receive your refund as quickly as possible.

Final Filing Checklist

Verify Security and Personal Data: Confirm you are filing over a secure (HTTPS) connection at AZtaxes.gov and that identity verification is complete successfully. Ensure your name, Social Security number, and mailing address match federal records to avoid security holds or processing delays.
Complete Calculation and Review: Double-check your Arizona forms. Ensure all math operations, tax table lookups, and the credit codes on your Arizona form are correct. A thorough review helps prevent errors that could trigger an audit or require additional department review.
Attach Documents and Prepare for Submission: Collect and organize all schedules, W-2s, 1099s, and credit forms, then affix them in the order specified in the instructions. If mailing, address your package to P.O. Box 52016 for payments or P.O. Box 52138 for refunds to ensure it reaches the correct processing center.
Submit Return and Await Acknowledgement: For e-filing, look for the “Return Accepted” confirmation, which indicates the department has begun processing your return. For paper filing, mail early and consider tracking your shipment; then monitor your status online or by phone to see when processing is complete.
Save Ray ID and Connection Records: If you encounter technical issues—such as timeouts or error messages displaying a Ray ID—record the identifier and any error details. This information helps the Arizona Department of Revenue’s IT team quickly troubleshoot and resolve connection problems.
Follow Up with Human Support if Needed: If your return remains under review beyond normal processing times or you receive an “action required” notice, call (602) 255-3381. A representative can guide you through any outstanding issues and confirm that your return has completed all review stages.

Frequently Asked Questions

What is the due date for filing and payment?

The due date for filing your Arizona return and paying any tax owed for 2020 was July 15, 2021. Individuals must meet this deadline to avoid penalties and interest on unpaid balances. If you requested a property tax refund that offset your liability, ensure you calculate any fees paid and adjustments before this due date.

What if my verification fails and the status shows waiting?

If your status shows "waiting" after e-filing, review the security of our connection at AZTaxes.gov and re-enter your details to verify you are human. Sometimes, additional identity checks are required. If waiting continues beyond 12 business days or you see an action prompt, contact a human representative at (602) 255-3381 to complete the action and proceed.

What is a Ray ID error when accessing the Arizona form status page?

A Ray ID error indicates the system flagged a network or security issue when you tried to view your Arizona form status. Record the Ray ID number, refresh the page, and retry on a secure connection. If the error persists, clear your cache or switch networks. Contact support if automated checks can’t complete to ensure your review and filing proceed.

How can I confirm my taxes have been received?

To confirm your taxes have been received, log in to your AZTaxes.gov account and check the payment history or “Account Summary” section. If you e-filed with an electronic withdrawal, look for a successful transaction confirmation. For mailed payments, use your bank’s tracking or call (602) 255-3381 for a human-assisted status review to ensure your payment is complete.

Can I claim property taxes as an itemized deduction on my Arizona return?

Yes, you can include property taxes as part of your itemized deductions on Schedule A if the total exceeds the standard deduction. Gather your property tax statements and other deductible expenses, then compare the sum to your standard deduction amount. Claiming property taxes may lower your taxable income, but ensure you complete all required forms and review your calculations carefully.

When is my e-file considered complete?

Your e-file is considered complete once you receive an electronic acknowledgement—often labeled “Return Accepted”—confirming your Arizona form has passed verification successfully and entered processing. Save the acknowledgement number. After this, the Department of Revenue proceeds to the review phase. You can then track the status changes online under the "Where’s My Refund" section until your tax return is complete.

Can I speak with a human if an action is required?

Absolutely. If you receive an “action required” notice or experience stalled progress, call (602) 255-3381 to speak with a human representative. Be ready to provide your Social Security number, Ray ID (if shown), and error details. A representative will guide you through completing any outstanding security or identity checks so your filing can proceed to completion.