Dependent tax credit

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43-1073.01. Dependent tax credit

A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section.

B. For taxpayers whose federal adjusted gross income is less than $200, 000 for a taxpayer who is a single person, a married person filing separately or a head of household or is less than $400, 000 for a married couple filing a joint return, the amount of the credit is:

1. $100 for each dependent who is under seventeen years of age at the end of the taxable year.

2. $25 for each dependent who is at least seventeen years of age at the end of the taxable year.

C. For taxpayers whose federal adjusted gross income is $200, 000 or more for a taxpayer who is a single person, a married person filing separately or a head of household or is $400, 000 or more for a married couple filing a joint return, the amount of the credit is:

1. $100 minus five percent for each $1, 000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is under seventeen years of age at the end of the taxable year.

2. $25 minus five percent for each $1, 000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is at least seventeen years of age at the end of the taxable year.

D. In the case of a nonresident or part-year resident taxpayer, the credit allowed under this section is allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income.


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