Arizona offers income tax filers several exclusions for income received that is not subject to state income tax. The following are a few of the exclusions:
- Exclusion of $2,500 per receiving taxpayer for U.S. Government, Arizona State or Local Government Pensions.
- Exclusion for active-duty military pay, pay received for active service as a reservist for a National Guard member.
- Exclusion for annuities and pensions as retired or retainer pay of the uniformed services of the United States (tax year 2021 and forward).
- Exclusion for American Indian wages received while living and working on their tribe’s reservation.
- Exclusion for interest earned on U.S. Government obligations.
Easy Tax Service in Prescott Valley can help if you have any questions about Arizona State income tax exclusions. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation service at a price you can afford. Please give us a call at 928-775-7000 to schedule an appointment today.