A judge has ruled parents who received up to $750 state tax rebates for dependents will not get back the taxes they paid on those to the federal government.
Arizona’s Attorney General Kris Mayes argued the one-time payments were exempt from federal taxation.
Those payments came from the 2023 state budget when there was a surplus. The provision provided families a rebate of $750 per dependent under 17 and $100 for older dependents.
Mayes argued the money came from the general fund and that other states made similar payments that did not need to be declared.
But the U.S. District Court judge said those payments were for the direct effects of COVID-19, which was a federally declared disaster. Arizona’s rebates did not mention the pandemic, but instead referenced inflation.
