Arizona allows taxpayers to claim itemized deductions on their state income tax return even if they claim the standard deduction on their federal return. Arizona itemized deductions are generally based on federal itemized deductions but are subject to Arizona-specific modifications and adjustments.
Itemized Deductions for Arizona Residents
- Taxpayers may itemize deductions on Arizona Form 140 regardless of whether they itemize deductions on their federal Form 1040. The amount of deductions allowed for Arizona purposes may differ from the amount allowed on the federal return.
- Arizona itemized deductions generally begin with the deductions reported on federal Schedule A and are then adjusted as required under Arizona law.
- Medical and dental expenses deductible for Arizona purposes are determined under Arizona's itemized deduction rules and may differ from the amount deductible on the federal return.
Part-Year Residents
- Part-year residents who claim itemized deductions must complete the appropriate Arizona schedules to determine the portion of their deductions allowable for Arizona purposes.
- Part-year residents who had no Arizona-source itemized deductions during the period they were nonresidents generally complete Schedule A(PY).
- Part-year residents who had Arizona-source itemized deductions during the period they were nonresidents generally complete Schedule A(PYN).
- For part-year residents, allowable itemized deductions generally include deductions attributable to the period of Arizona residency and, where applicable, Arizona-source itemized deductions incurred during periods of nonresidency.
Source:
PUBLICATION 10.pdf
Form 140.pdf
Form 140PY Schedule A.pdf
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. For complex tax situations, consult a CPA or tax attorney.