Does AZ tax unemployment ?
Does Arizona tax unemployment?
Does Arizona tax unemployment?
Yes. As a "piggyback" state, Arizona starts with the Federal AGI and then makes adjustments from there. Unemployment is not one of those adjustments. However, Proseries 1040 does have a smart worksheet (from entering Form 1099-G received from AZ Dept of Revenue) that will reduce portion included in AGI by any repaid benefits and the $2,400 per recipient exclusion (per federal law). Just the amount included on federal AGI will transfer directly to AZ .