Deductions & Credits You May Qualify For

Above-the-Line Deductions

• Educator Expenses: Up to $300 ($600 MFJ if both educators)
• Student Loan Interest: Up to $2,500 (income limits apply)
• IRA Contributions: Deductible based on income/plan coverage
• HSA Contributions: For high-deductible health plans
• Self-Employed: Health insurance premiums; 50% SE tax; SEP/SIMPLE/solo 401(k); home office; ordinary/necessary biz expenses
• Alimony paid (pre-2019 decrees)
• Moving expenses (active-duty military PCS only)

Itemized Deductions (Schedule A)

• Medical & Dental: Unreimbursed 7.5% of AGI
• SALT: Up to $10,000 (2024) or $40,000 (2025)
• Home Mortgage Interest (within balance limits)
• Charitable Contributions: Cash/non-cash to qualified orgs
• Casualty & Theft: Federally declared disaster areas only
• Gambling Losses: Up to gambling winnings

Key Federal Tax Credits

• Child Tax Credit: Up to $2,200 per child (2025)
• Child & Dependent Care Credit
• Earned Income Tax Credit (EITC)
• Education Credits: American Opportunity (AOTC), Lifetime Learning (LLC)
• Saver’s Credit (retirement contributions)
• Premium Tax Credit (Marketplace health insurance)

Standard Deduction

Claimable even if you itemize federally; extra deduction for age 65+.

Itemized (Based on Fed Schedule A, with AZ adjustments)

• Medical & dental 7.5% AGI
• Home mortgage interest
• Charitable donations
• State, local, real estate, personal property taxes (adjust if claiming AZ charitable credits)

Arizona Subtractions from Income

• Active Duty Military Pay (fully subtractable)
• Retirement benefits: federally taxable Social Security & railroad retirement
• Adoption expenses: Up to $3,000 (year adoption order granted)
• Long-term care insurance premiums (if qualifying)
• 529 Plan contributions: Up to $2,000 (single) / $4,000 (MFJ)

Arizona Tax Credits

• Public School Extracurricular Activities
• Private School Tuition Organizations
• Qualifying Charitable Organizations (QCOs)
• Qualifying Foster Care Charitable Organizations (QFCOs)