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What Arizona Taxpayers Need to Know About 2025 Income Tax Forms
The Arizona Department of Revenue (ADOR) has shared new information to help Arizona taxpayers understand changes to the 2025 state income tax forms and what Governor Katie Hobbs' executive order means for filing taxes.
The short version: Most people can file their taxes normally and do not need to wait.
Should I Wait to File My Taxes?No.
ADOR says Arizona releases its tax forms every year before the Legislature finishes updating tax laws. This is normal and has been done for many years.
Most taxpayers can go ahead and file when they're ready.
Could I Have to Fix My Return Later?Maybe — but only in some cases.
If the Legislature later changes the law and a tax break you used is not approved, you may need to file an amended return.
If that happens:
- ADOR will give instructions
- You will not owe penalties or interest
- You would have until October 15, 2027 to fix it
ADOR says many people likely won't need to make changes.
Why the Governor Issued an Executive OrderGovernor Hobbs signed Executive Order 2025-15 to help avoid confusion and delays.
Without it, Arizona's standard deduction would not match the federal one. Since almost 90% of Arizona taxpayers use the standard deduction, that could have caused:
- Confusing tax forms
- Millions of amended returns
- Processing delays
- Higher costs for the state
The executive order helps keep things simple and consistent.
What Tax Breaks Are Included on the 2025 Forms?The 2025 Arizona income tax forms include these five items:
- A higher standard deduction
- A tax subtraction for seniors age 65 and older
- A subtraction for qualified tip income
- A subtraction for qualified overtime pay
- A subtraction for qualified vehicle loan interest
ADOR says all five are already included on the forms.
What If the Legislature Agrees With the Forms?If the Arizona Legislature passes tax laws that match the current forms, no action will be needed from taxpayers.
If lawmakers add new changes or remove any of these items, some people may need to update their returns — but ADOR says it will provide guidance if that happens.
Why Were the Forms Released Before Lawmakers Finish?Arizona law requires the state to start with federal adjusted gross income when calculating state taxes.
ADOR says it has followed this process for more than 30 years. Changing it would make filing harder for taxpayers and tax preparers.
Bottom Line for Taxpayers- You can file your Arizona taxes as usual
- Most people will not need to do anything extra
- If changes are needed later, ADOR will provide help
- No penalties or interest if an amended return is required
For now, ADOR says the current forms are the best way to keep filing simple and avoid delays.
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Comments 1
This reads like a Democrat party puff piece. The reality is that Arizona does not automatically conform to federal tax law. Changes to tax law require an affirmative change in Arizona law. The governor does not make Arizona law. The legislature does. The governor stated, in a press release, her support for an elimination of tax on tips, and elimination of tax on overtime, and not to include the federal auto interest loan deduction or the federal state and local tax deductions. In the meantime, the Department of Revenue, led by the governor, confusingly released forms that reflect some, but not all, of what she stated in her press release. The legislature sent the governor a bill that did what she stated she wanted in her press release: an elimination of tax on tips, an elimination of tax on overtime, and no auto loan interest deduction or state and local tax deduction. In an insane and bizarre veto, and with absolutely no communication to her department of revenue, the legislature, or anybody, she vetoed it. Taxpayers now will have to refile their taxes if they use the existing forms that the governor's department of revenue produced because those forms reflect deductions that are not Arizona law.