|
REFERENCE TITLE: income tax; college tuition deduction |
|
State of Arizona Senate Fifty-second Legislature Second Regular Session 2016
|
|
SB 1215 |
|
|
|
Introduced by Senators Bradley, Begay, Cajero Bedford, Hobbs, Meza, Miranda, Pancrazi; Representative Saldate: Senators Barto, Dalessandro; Representatives Friese, Mach
|
AN ACT
Amending section 43-1042, Arizona Revised Statutes; relating to income tax itemized deductions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-1042, Arizona Revised Statutes, is amended to read:
43-1042. Itemized deductions
A. Except as provided by subsections B and D of this section, at the election of the taxpayer, and in lieu of the standard deduction allowed by section 43‑1041, in computing taxable income the taxpayer may take the amount of itemized deductions allowable for the taxable year pursuant to subtitle A, chapter 1, subchapter B, parts VI and VII, but subject to the limitations prescribed by sections 67, 68 and 274, of the internal revenue code.
B. In lieu of the amount of the federal itemized deduction for expenses paid for medical care allowed under section 213 of the internal revenue code, the taxpayer may deduct the full amount of such expenses.
C. Notwithstanding subsection B of this section, expenses for long‑term health care that are paid or reimbursed from the taxpayer's long‑term health care savings account pursuant to section 43‑1032 shall not be deducted pursuant to this section.
D. A taxpayer shall not claim both a deduction provided by this section and a credit allowed by this title with respect to the same charitable contributions.
E. The taxpayer may add any interest expense paid by the taxpayer for the taxable year that is equal to the amount of federal credit for interest on certain home mortgages allowed by section 25 of the internal revenue code.
F. For taxable years beginning from and after December 31, 2016, in addition to the other itemized deductions allowed by this section, in computing taxable income a qualifying taxpayer may deduct expenses, but not more than two thousand five hundred dollars, paid by the taxpayer during the taxable year for tuition to a university under the jurisdiction of the Arizona board of regents or to a community college under the jurisdiction of a community college district in this state. For the purposes of this subsection, "qualifying taxpayer" means a taxpayer whose Arizona adjusted gross income for the taxable year does not exceed:
1. Eighty thousand dollars for a single individual or a head of household.
2. One hundred sixty thousand dollars for a married couple filing a joint return.