The chorus of voices in opposition to the Internal Revenue Service's taxation of a state rebate many Arizona families received last year continues to grow.
On Wednesday, U.S. Reps. David Schweikert, Greg Stanton and Juan Ciscomani asked the IRS to change course on taxing the "Arizona Families Tax Rebate." Taxpayers in Arizona have already begun to file with the federal deadline being April 15, and 1099-MISC forms were sent out for the rebate.
“We urge the IRS to reconsider its determination and provide expedited relief to compliant Arizonan taxpayers who have already filed their 2023 tax returns,” the lawmakers stated in a letter to IRS Commissioner Daniel Werfel.
The Center Square previously reported that roughly 700,000 families in Arizona got a rebate of up to $750 or $1,500 for married joint filers, based on number of dependents they have, and the dependent's ages. As a result, the IRS is taxing it as miscellaneous income.
As for the congressmen, the bipartisan trio estimates in their letter $20.8 million more as a result of taxing the rebate. Arizonans do not have to pay state taxes on it, according to the state's Department of Revenue website.
