Filing deadline hits with no agreement yet on tax conformity
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It's Tax Day, and if you've been waiting for Gov. Katie Hobbs and GOP lawmakers to sort out their tax conformity fight before you file, you're out of luck.
Why it matters: Some taxpayers who itemize may need to file amended returns later this year, depending on what changes the governor and Legislature make to the tax code.
State of play: The Arizona Department of Revenue says on its website that the agency will provide guidance to impacted taxpayers.
- People who file amended returns won't be subject to any fines or penalties, provided they meet the Oct. 15, 2027 deadline.
- Per ADOR, people won't have to re-file if they take the standard deduction (that's most Arizonans) and don't plan to claim deductions for overtime pay, tips, Qualified Vehicle Loan Interest or the $6,000 senior deduction.
Yes, but: If the tax code for 2025 is changed to match ADOR's forms, which include all of last year's federal changes, no one will have to file amended returns, Sen. J.D. Mesnard (R-Chandler) noted to Axios.
- Mesnard, who chairs the Senate Finance Committee, said Republicans won't agree to anything that makes people file amended returns, which would require full conformity with federal law for 2025.
Catch up quick: Hobbs and the Republican majority have fought throughout the session about how to conform state tax code to federal changes made last year by President Trump's One Big Beautiful Bill Act.
- Hobbs demanded that lawmakers pass a partial conformity law that she dubbed her Middle Class Tax Cuts bill, and said she'd negotiate other tax changes with Republicans as part of the state budget.
- She vetoed two conformity bills the Legislature sent her.