Arizona Estimated Tax Payments are typically made on April 15, June 15, and September 15 of the current year, as well as January 15 of the following year. If a due date falls on a weekend or legal holiday, the deadline is pushed to the next business day. To pay your Arizona estimated taxes online, you must complete Form 120ES. This is a short form that asks for the following information: Estimated taxes are paid on income from a variety of sources, including wages and salaries, dividends and interest, retirement plan distributions, and capital gains. Other sources include:
- Rental and royalty income.
- Professional services fees.
- Unemployment insurance benefits.
- Military allowances.
- Social security payments.
- Self-employment tax.
Arizona State Taxes: Individuals in Arizona pay a state income tax on their taxable income at rates set by the legislature, plus local county and district taxes. These taxes fund things like public schools, police and fire departments, parks, and sewage systems.
Arizona Property Taxes: Most homeowners in Arizona will pay property taxes based on their home’s assessed value, with the rate varying between cities and counties. In addition, residents must pay tax on gasoline and diesel fuel, alcoholic beverages, and cigarettes.
A late filed return is penalized at a rate of 4.5% of the amount of the tax due for each month or fraction of a month that the return is late, up to a maximum of 25%. A late payment penalty is also assessed at a rate of 5% of the tax due, up to a maximum of 25%.
Arizona Estimated Tax Installment Plan
A taxpayer can also file an estimated tax installment plan with the Arizona Department of Revenue (ADOR). This option is available if the taxpayer does not have enough money to fully pay the tax liability. The ADOR will review the plan and approve or disapprove it. If the taxpayer disagrees with a decision, they can petition the Problem Resolution Officer.
Arizona Estimated Taxes Payment Methods
The Arizona Department of Revenue offers a variety of online methods to make estimated tax payments. The most convenient method is to use an electronic payment service. These services are safe and secure and provide a simple way to pay your Arizona estimated taxes. In addition, these services allow you to check your payment status at any time. You can also download, export, or print your estimate payment receipts. You can even sign your payment using a digital signature, which is an easy and convenient alternative to hand-signing documents.
If you choose to pay your Arizona estimated tax by check, you should include a completed payment voucher with your check. The payment voucher must specify the tax year and your Social Security Number. You should write “Estimated Tax,” the tax year, and your Social Security Number in the notation area of your check to ensure that the funds can be properly credited.
Point & Pay
If you are an individual taxpayer, you can pay your Arizona state tax online through a new system created by Point & Pay in partnership with the Department of Revenue. The system accepts American Express, Discover, MasterCard, and VISA credit or debit cards and e-checks. The Arizona individual income tax, transaction privilege tax, use tax, and corporate income tax can all be paid through this service.
The system also allows you to enter your estimated tax amount and choose which periods to apply it to. You can make payments in multiple installments or choose to pay the total due in one payment. To do this, click on the “Submit” button after entering your estimated tax information.