Expect Increased Wait Time if Filing by Paper

 

About 40% of taxpayers file within the last month of tax season - typically more than 80,000 paper returns. The Arizona Department of Revenue (ADOR) strongly encourages taxpayers to file and pay their taxes electronically at the same time. Filing early and electronically can significantly reduce the waiting time for a refund.

• E-filers (Electronic Filing and Payment): Anticipate your tax return to be processed a couple of weeks after you receive confirmation that ADOR has accepted your return.

• Paper Filers: Allow a minimum of 10 weeks from the date filed to process the return. Delays are anticipated, especially for returns received during March and April.

• E-file with Paper Payment: The e-filed return generally processes in a couple of weeks. However, the paper payment will take longer, averaging 8-10 weeks to process. This may result in a bill notice being sent before the paper check is processed. If this occurs, please allow the Department time to process your paper payment before contacting ADOR or your tax preparer.

Check Your Refund Status Anytime

You can check the status of your Arizona state tax refund and track its progress online at AZTaxes.gov/Home/CheckRefund. You will need to provide your Social Security Number, filing status, zip code, and the relevant tax year.

 

Typical Refund Process Times

ADOR is committed to continuously improving our fraud prevention program and verifying information in our system. All returns go through fraud-detection reviews and accuracy checks before ADOR sends any refunds.

• E-filers: Anticipate your tax refund to be processed a couple weeks after you receive confirmation that ADOR has accepted your return.

• Paper filers: Allow a minimum of 10 weeks from date filed to process the return.  

 

Refund Exceptions

• After Approval: For refunds by direct deposit, you can check your bank account two business days after your refund approval date.

• Accurate Bank Information: Taxpayers are ultimately responsible for entering the correct account and routing number. If the refund is delivered to the wrong account, a new refund cannot be sent until the receiving account returns the funds.

• Bank Processing Time: The time it takes for your bank to process the refund determines when the deposit will appear in your account. Please contact your bank directly to check on the processing time before calling ADOR.

• Tax Preparer: If you choose a tax preparation service to receive the money for you, their deposit service will send you the funds, delaying the final deposit date.

 

Refunds by paper check are mailed in approximately three to five business days after approval, and delivery times vary depending on USPS. You can check your mailbox after 5-6 business days.

 

The Department of Revenue will always try to process a refund in the method requested by a taxpayer. There are times however, when the agency will need to process a refund in the form of a paper check.

 

Gathering More Information

If you receive a notice requesting more information, your tax refund will be delayed until ADOR gathers the requested information. Then, it will take about six more weeks to finish the process.

 

To learn more about how to check your refund status, check out the “Where’s My Refund?” resource on our webpage.

Free Filing Resources

File for free: Through the Free File Alliance program, taxpayers can choose from multiple free file offerings to prepare and file returns electronically. To prevent any unexpected charges for the state return, only access free options directly from azdor.gov.

 

Use free tax filing services: The Volunteer Income Tax Assistance Program provides free tax help to people who have an income of $69,000 or less, individuals with disabilities, and limited English speaking taxpayers.  Also, the AARP Foundation Tax-Aide Program is available for individuals aged 50 and older who cannot afford professional services. This aid covers filing both federal and Arizona state returns.

Tips to Follow

Before Filing

• Enter all taxpayer information: To process your return, it must be complete and accurate. Required information includes your full name, taxpayer identification number, address, and filing status. Make sure that you enter:

  • Your complete 9-digit social security number (SSN).

  • If you are filing married jointly, include spouse information in the same order as last year (if applicable).

  • If filing as single or head of household, leave the spouse information section blank.

• Declare all income: All income for full, part-time, temporary, or supplemental employment, whether received in cash or reported on a Form W-2 or Form 1099, is subject to income tax.

• Get the credits you deserve: Income tax credits can increase your refund or reduce the taxes you owe.

  • Include Form 301: Ensure the information on Form 301 matches your tax return.

  • Include the corresponding credit form(s): Submit the specific form(s) you used to calculate your credit(s).

  • Verify the codes: Using an incorrect code will result in the credit being rejected. Qualifying charity codes on Form 321, Public School CTDS Code on Form 322, and Qualifying Foster Care Charity Code on Form 352.

• Send the correct tax year forms: Submit all individual income tax forms and supporting documents for the same tax year together. Submitting forms from different tax years together is unacceptable. Do not attempt to change the tax year on a form by crossing it out.

• Use e-file or fillable forms: To help ADOR process paper returns efficiently, please use fillable forms and print them using black ink on white paper. Although ADOR staff attempts to decipher all handwriting, illegible forms can be challenging and slow down processing.

• Thoroughly review: Before submitting your return, review all information to avoid common mistakes. Errors increase processing time and delay any refund due.

• Use direct deposit: Have your refund directly deposited into your bank account and receive your refund faster and more securely. Be sure to double-check the routing and account numbers for your account.

• Always file on time: To avoid penalties and interest, file on time. If you need an extension, pay electronically or send check payments with the completed Arizona Form 204. To avoid an extension underpayment penalty, you must pay at least 90% of the tax due by the return’s original due date.

 

After filing

• Check your refund status online: The fastest way to get updates on your refund is AZTaxes.gov/Home/CheckRefund.

• Allow a minimum 8-10 weeks for paper payment processing: You have the option to make electronic payments through AZTaxes.gov, allowing you to schedule the payment for a future date. If you have already mailed a check, do not submit an electronic payment.

• Provide all the information on the paper check: An accurate address, pay to, amount, memo, and signature. Ensure the paper check contains the written amount on the amount line and amount box, along with the tax identification numbers, tax type, and tax year on the check memo line. When sending a payment, ensure it is sent with the original tax return or a payment voucher so it can be applied to the correct account and tax period promptly.

• Income taxes are considered on time based on the postmark date: Anything postmarked after the due date will be late and are assessed penalties. If filing by paper, consider taking your envelope inside a post office and requesting a same-day manual postmark at the retail counter.

• ADOR manages several debt offset programs: The offset program uses an individual's state tax refund to pay for outstanding tax liabilities, as well as debts owed to other state agencies or municipalities. Taxpayers should contact the agency identified on the notice, not ADOR.

• Do not resubmit a return: Allow a minimum of 8-10 weeks for processing a paper return; only call after this timeframe. Avoid sending duplicate returns, as they cause ADOR to process another return, resulting in an informational return and delaying processing. Similarly, avoid repeat payments. This may result in multiple charges, and the extra payment will likely be refunded if no other liabilities exist. Do not send an electronic payment if a paper payment has been mailed.

 

Payment Plan

Owe less than $5,000 on your state taxes and cannot pay? For taxpayers unable to pay their individual income tax liability less than $5,000 in full, ADOR offers a convenient way to request a payment plan and manage their liability. A payment plan is an arrangement with ADOR to pay tax debt within an agreed-upon timeframe.

 

Through the AZTaxes.gov website, taxpayers can quickly and easily set up a payment plan rather than phone or mail, and it also reduces the number of calls and paper submissions to be processed.

 

To set up a plan, go to AZTaxes.gov and under the Individual menu, select “Request a Payment Plan.”

 

Submitting a payment plan request through the portal does not automatically generate a plan in the system. Please allow time for ADOR to process your request. The Department will then send a confirmation letter containing the plan details and timeline.

 

What you should know if considering a payment plan:

• If you already have received a tax bill for the tax period, it can take up to two weeks to set up a payment plan request in ADOR's system.

• If you have not received a bill for the tax period,  it can take up to eight weeks to set up a payment plan request in ADOR's system.

• Once submitted and approved, the taxpayer will be provided a confirmation number and a monthly installment payment amount.

• While on a payment plan, taxpayers must not add new liabilities and must make timely payments through AZTaxes.gov. Interest will continue to accrue until the liability is paid in full.

• If the payment plan defaults, ADOR can and will enforce without notice through a levy and/or lien action.

 

View our video tutorial for further assistance on the self-service option for requesting a payment plan through AZTaxes.gov.

Reminder of Call Center Hours

In our continuing efforts to serve and support Arizona’s taxpayers, ADOR’s Call Center is open from 7 a.m. to 6 p.m, Monday-Friday.  

 

The Call Center can be reached in the local Phoenix area at:

(602) 255-3381

or Toll-free (International calls and those from area codes 520 and 928 only):

800-352-4090

Recordkeeping Tips

Taxpayers can save time and effort by maintaining good recordkeeping habits.

• Develop a dedicated folder for tax-related documents to make it easier to prepare a tax return and it helps if you are audited or receive a notice.

• Separate records for personal and business finances.

• Keep records, such as receipts, W-2s, 1099s, and other documents relating to an income source, deduction, or credit, generally until the statute of limitations expires. (Individual Income Tax - Keep records for 4 years from the due date or when the return is filed, whichever is later.)

• Familiarize yourself with our Statute of Limitations and Period of Limitations for Refund Claims.

 

Before You Toss Records

After your documents are no longer needed for tax records, check to see if you must keep them longer for other purposes before tossing them.

 

When they are no longer needed for any purpose, securely shred tax documents to avoid identity theft. Check with your local government office to see if they host free shred-a-thons in your community.