As with federal income tax returns, the state of Arizona offers various credits to taxpayers. An individual may claim itemized deductions on an Arizona return even if taking a standard deduction on a federal return. For the most part, an individual may claim those deductions allowable as itemized deductions under the Internal Revenue Code. If claiming Arizona itemized deductions, individuals must complete and include Federal Form 1040, Schedule A, and, if applicable, an Arizona Schedule A with an Arizona return.
Enter all your itemized deductions on the federal return. TurboTax will transfer them to your state return (even if you are taking the standard deduction on the federal return). If on the Arizona return, your itemized deductions are greater than the AZ standard deduction, TurboTax will recommend and allow you to choose to itemize on the state return only.
On both, the federal return and the AZ return, you can choose either the standard deduction or your itemized deductions, never both.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
