ARIZONA HOUSE OF REPRESENTATIVES

SB 1141: S/E increased income tax subtraction; veterans

PRIME SPONSOR: Senator Griffin, LD 14

BILL STATUS: Land, Agriculture & Rural Affairs

Abstract

Relating to income tax deductions for veterans' pensions.

Provisions

1. Increases the maximum allowable income tax deduction for veterans' retirement or retainer pay as follows:

a. From $2,500 to $6,250 in TY 2019; and

b. From $6,250 to $10,000 in TY 2020 and after. (Sec. 1)

2. Makes a conforming change. (Sec. 1)

Current Law

Arizona gross income is equal to the Federal adjusted gross income for the taxable year, computed pursuant to the IRC. Arizona adjusted gross income is an individual's Arizona gross income after any statutorily required additions or subtractions (A.R.S. § 43-1001).

A maximum amount of $2,500 of benefits, annuities and pensions received from retired or retainer pay of the US Uniformed Services may be deducted when calculating Arizona gross income (A.R.S. § 43-1022).

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Fifty-third Legislature                  SB 1141

Second Regular Session                               Version 1: Land, Agriculture & Rural Affairs

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