Form 1099-MISC Available End of January for Rebate Recipients
The IRS has determined the Arizona Families Tax Rebate recently sent to eligible taxpayers is subject to federal income tax and is required to be reported as part of the federal adjusted gross income. However, the rebate is not subject to Arizona income tax and should be subtracted from the federal adjusted gross income on the 2023 Arizona individual income tax return.
Affected taxpayers will be sent a statement by mail that they are to check the online portal to access their 1099-MISC which documents the rebate amount they received. ADOR is required by federal law to issue this form to taxpayers as an informational statement since the income must be reported on the income tax return.
Taxpayers can also check their bank statement to confirm the amount received from ADOR for the Arizona Families Tax Rebate. The statement is not a bill, and individuals should not send any type of payment in response.
Effective January 31, ADOR is adding Form 1099-MISC to its online portal to search, download, and print 1099 forms through www.AZTaxes.gov.
Form 1099-MISC reports miscellaneous compensation and other payments such as the Arizona Families Tax Rebate. Primary taxpayers will be issued the statement if they received the rebate in 2023
Arizona Families Tax Rebate: https://azdor.gov/individuals/arizona-families-tax-rebate
How do I enter this in Lacerte?
This amount must be reported as Federal income. However, an adjustment can be made for Arizona purposes.
- Go to Screen 51.101, Arizona Modifications.
- Locate the Arizona Subtractions section.
- Enter the amount to subtract from Arizona income in the field for Arizona families tax rebate (code 37).
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