As the 2024 tax filing season kicks off, the IRS has determined the Arizona Families Tax Rebate, recently distributed to eligible taxpayers in October or November 2023, IS subject to Federal income tax.

Therefore, recipients are required to report the rebate as part of their federal-adjusted gross income. For Arizona state income tax – the rebate is NOTsubject to Arizona income tax.

Taxpayers who received the rebate will receive a statement by USPS mail instructing them to check the State of Arizona online portal to access their 1099-MISC form. It’s essential to note that the statement received is not a bill, and individuals should refrain from sending any form of payment in response.

Starting January 31st, taxpayers will be able to search, download, and print these 1099 forms through  AZTaxes.gov to streamline the reporting process.

In conclusion, we ask that if you received this rebate, please check the website and download any 1099 issued by the State when providing your information to us to prepare your taxes.

You can read more about this update from the Arizona Department of Revenue News and Announcements.