2019 Arizona Individual Income Tax Changes
Are Arizona itemized deductions the same as the federal itemized deductions?
Arizona itemized deductions are the same as the federal itemized deductions except:
- All qualified medical expenses are allowed.
- Any charitable donations claimed on the federal return for which an Arizona credit is claimed, must be removed from the Arizona itemized deductions.
- Arizona will allow a deduction for mortgage interest not allowed on the federal return due to claiming a federal mortgage credit.
How to benefit from a Home Office Deduction
A home office deduction can be taken when a taxpayer uses a portion of their home exclusively, and on a regular basis, for any of the following:
- As the taxpayer’s main place of business.
- As a place of business where the taxpayer meets patients, clients or customers. The taxpayer must meet these people in the normal course of business.
- If it is a separate structure that is not attached to the taxpayer’s home. The taxpayer must use this structure in connection with their business
- A place where the taxpayer stores inventory or samples. This place must be the sole, fixed location of their business.
- Under certain circumstances, the structure where the taxpayer provides day care services.