Owed A Refund Of Taxes On Unemployment Income? Prepare To Navigate A Maze

Owed A Refund Of Taxes On Unemployment Income? Prepare To Navigate A Maze

By Terri Jo Neff |

As if the last 17 months haven’t been complicated enough, the Arizona Department of Revenue announced Thursday that some taxpayers who received income in 2020 from the $12.5 billion paid out by the state for unemployment insurance benefits and pandemic unemployment assistance may be eligible for a tax refund.

The refund can be obtained by filing an Arizona Form 140X amended return. But that is where the simple part ends.

The possibility of a refund affects those Arizonans who received unemployment payments in 2020 and filed their state income tax return on or before March 11, 2021. That’s the date the American Rescue Plan Act of 2021 was signed by President Joe Biden, making up to $10,200 of unemployment benefits exempt from federal income taxes in 2020.

Gov. Doug Ducey later signed legislation which mirrored the federal exemption, meaning many Arizonans with 2020 unemployment income likely filed a state tax return under the old tax code.

ADOR could have created a computer program to identify the affected taxpayers who filed on or before March 11 and send them a notification. Instead, the burden is on Arizonans to navigate a maze of “if this, then that” instructions from ADOR in order to obtain a refund.

To start with, the Arizona Form 140X cannot be filed unless the taxpayer’s 2020 federal tax return has been amended first. The IRS is already doing that for some taxpayers and even sending an adjustment notice with a refund check. Everyone else is responsible for preparing and filing an amended federal return.

Either way, Arizonans eligible for a refund due to overpaying taxes on their 2020 unemployment benefits must wait for the IRS to confirm the federal return has been adjusted. And then they have to ask the IRS for a “transcript” after the amended federal return is processed.

Once that is done, a taxpayer can complete the Arizona Form 140X. However, it cannot be e-filed through ADOR’s website; it must be printed out and mailed in.

On the upside, Arizonans have four years to amend their state income tax return to claim a refund for overpayment of unemployment income. An amended 2020 return filed in 2022, however, could trigger the need for an amended return in 2021.

Most Arizona residents will be able to complete the Arizona Form 140X by following simplified instructions provided at https://azdor.gov. However, part-year residents and nonresidents must follow the full instructions for Form 140X.

Cost Analysis Shows AZ Green New Deal Energy Mandates Will Cost Ratepayers Over $6 Billion

Cost Analysis Shows AZ Green New Deal Energy Mandates Will Cost Ratepayers Over $6 Billion

By the Free Enterprise Club |

It turns out that upending Utility energy production and mandating “clean” energy by an arbitrary date costs money. A lot of money actually—to the tune of over $6 billion according to a new study commissioned by the Corporation Commission.

This study comes over a year after the Commission first announced its Green New Deal Energy Rules. Many votes have taken place since then, votes that would impact ratepayers, yet no independent cost analysis had been done until now.

The green energy lobby repeatedly told the Commission that the mandates (which were rejected by a margin of two to one on the ballot in 2018), would actually save ratepayers money and have an economic benefit of $2 billion. Seemingly everyone in the Corp Comm echo chamber and the media actually believed these suspicious figures. Everyone except Commissioner Justin Olson. He introduced an amendment last April to ensure that costs incurred by Utilities to comply with the mandates aren’t passed onto ratepayers. The amendment failed. It turned out that the same people claiming that energy mandates save people money didn’t believe their own hype and fought to kill this ratepayer protection.

We already know that previous mandates have led to higher utility bills and boondoggle projects. The Renewable Energy Standard and Tariff adopted by the Commission in 2006 (requiring 15% renewable energy by 2025) resulted in APS signing a 30-year contract for solar energy costing 400% above market rates. All passed onto the ratepayer.

Thankfully prior to leaping before they looked, the Commission agreed to conduct a study with an independent firm to identify the potential cost of additional mandates. The firm they hired—Ascend—compares 3 different portfolios of energy production: “Least Cost” which relies on utilities pursuing the lowest cost option for consumers, an 80% clean energy mandate by 2050, and a 100% clean energy mandate by 2050. In order to hit the 80% or 100% mandate requirements, utilities would need to phase out all fossil fuels, purchase more solar and wind generation, expand lithium-ion battery storage and convert natural gas generation to green hydrogen…

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Coalition Introduces 2022 Ballot Initiative to Strengthen Voter ID

Coalition Introduces 2022 Ballot Initiative to Strengthen Voter ID

By Corinne Murdock |

Last week, the Secretary of State’s office received the “Arizonans for Voter ID Act:” a ballot initiative to strengthen ID requirements for in-person and mail-in voting through universal voter ID. The initiative will require ID for mail-in ballots, but will also provide a free voter ID to those registered voters who need it. Voters would also be required to give certain information: their date of birth, as well as either the last four digits of their Social Security Number, driver’s license number, or nonoperating state identification number.

Proponents of the Arizonans for Voter ID Act assert that its voter ID requirement will also deter ballot harvesting. The political committee that filed the ballot initiative, Arizonans for Voter ID, was joined in their efforts by the Arizona Free Enterprise Club, Heritage Action, Honest Elections Project Action, Foundation for Government Accountability, the Goldwater Institute, the Republican Liberty Caucus of Arizona, AMAC Action, and Arizona Women of Action.

As required by law to qualify for the 2022 November ballot, the Arizonans for Voter ID Act acquired at least 237,645 signatures by July 7.

Arizona Free Enterprise Club President Scot Mussi asserted that most Arizonans and all other American citizens support strong voter ID.

“This initiative will ensure that no matter when you vote, where you vote, or how you vote, identification will be required,” said Mussi.

The polls support this claim. Over 60 percent of Arizona voters support voter ID. Nationally, around 80 percent of Americans support voter ID.

In July, U.S. Supreme Court Justice Samuel Alito ruled that Arizona law makes it “quite easy” for individuals to vote. The court case, Brnovich, et al. v. Democratic National Committee, et al., outlined the provisions of Arizona voting law that ease the burden for voters. Alito noted that this included in-person voting on Election Day, 27 days of early in-person voting, and only one application required for mail-in voting which could be extended perpetually through the Active Early Voting List as long as voters vote once within two straight two-year election cycles (rebranded from “Permanent Early Voting List,” or PEVL, through legislation passed earlier this year limiting the system’s perpetuity).

ID plays a role in many mainstream societal transactions, as Arizonans for Voter ID Committee Chair Vicki Vaughn argued.

“Arizonans show identification all the time in their daily lives to purchase alcohol, receive unemployment benefits, make major transactions, and board a plane, among others,” stated Vaughn. “Requiring identification before casting a ballot is necessary for our elections.”

A photo ID or another valid, government-issued ID is also required for the following: obtaining a driver’s license, receiving certain in-patient or out-patient doctor or hospital treatments, receiving certain over-the-counter or prescription medicines, buying guns or ammunition, visiting schools or jails, filing court documents, adopting a child, engaging in parole or probation, receiving auto insurance, donating blood, cashing or paying with checks, pawning items, responding to a traffic stop, obtaining a passport, picking up packages at the post office, buying cigarettes, opening a bank account, renting or buying a house, applying for a mortgage, adopting a pet, renting a hotel room, applying for a hunting or fishing license, establishing a utilities account, and applying for a job.

Learn more about the Arizonans for Voter ID Act here.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Arizona Ranks #4 For Post-COVID19 Job Recovery As Prop 208’s Impact Looms On Horizon

Arizona Ranks #4 For Post-COVID19 Job Recovery As Prop 208’s Impact Looms On Horizon

By Terri Jo Neff |

Although Arizona is not yet back to pre-pandemic workforce levels, a recent U.S. Bureau of Labor Statistics report shows the state is headed in the right direction, with more than 21,000 jobs added in July, boosting Arizona to fourth place in percentage of jobs recovered post-COVID19.

That means Arizona has restored all but around 20,000 of the 331,500 jobs lost in the pandemic’s aftermath, giving the state at a recovery rate of 93.7 percent. Only three states -Utah, Idaho, and Montana- have a better percentage of recovery than Arizona as of July.

Yet despite the state’s positive trajectory, many small business owners, economists, and job placement officials remain worried about whether Prop 208’s 3.5 percent income tax surcharge will go into effect or not, and whether legislation aimed at blunting any impact will withstand its own legal challenge.

The surcharge was narrowly approved by voters last November to hit Arizonans earning more than $250,000 (single filing) or $500,000 (joint filing) in an attempt to increase K-12 funding. The tax was designed to be on top of the then-existing income tax of 4.5 percent, but last week the Arizona Supreme Court ordered a Maricopa County judge to determine whether Prop 208 tax revenues will exceed the Education Expenditure Limit set in the Arizona Constitution.

If the answer is yes, then the judge must declare Prop. 208 unconstitutional and enjoin state officials from putting the tax surcharge into operation, the justices ordered.

Gov. Doug Ducey signed legislation in June to change Arizona’s individual income tax structure over the next three years and to blunt the surcharge effect. The legislation also provides small businessowners an alternative to the surcharge. But until the Prop 208 legal issue is resolved, there are worries that Arizona’s recovery will slow due to small business owners reducing spending -such as employee compensation and benefits- to cover any additional tax burden.

Others may choose to abstain from hiring or even decide to cut personnel. And that is a point of concern for those trying to get jobs for all Arizonans who want one.

The same Bureau of Labor Statistics report shows Arizona’s rate of unemployment was 6.6 percent in July, ranking 40th in the nation. That ties with Alaska, Louisiana, and Pennsylvania, while Utah, Idaho, and Montana had unemployment rates at 2.6, 3.0, and 3.6 respectively, among the Top 10 lowest percentages for July.

Arizona’s current unemployment rate, however, is a vast improvement from April 2020, when the state had 14.2 percent of work-eligible adults out of jobs, a historical high.  In addition, next month’s end of two Arizona Department of Economic Security (DES) unemployment benefit programs is expected to spur many out-of-work Arizonans back into the workforce.

Those programs -Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation- are scheduled to expire for the workweek ending Sept. 4. Ducey and DES have created a Back to Work program with several features to help Arizonans transition back to work, including childcare vouchers, educational incentives, and even hiring bonuses for eligible individuals.

Groups Form Coalition To Strengthen Arizona’s Voter ID Laws

Groups Form Coalition To Strengthen Arizona’s Voter ID Laws

By Terri Jo Neff |

Several Arizonans, Republican state lawmakers, and organizations are joining forces to secure enough signatures so voters can decide during the November 2022 General Election whether to strengthen existing voter ID requirements.

Arizonans for Voter ID is a political committee sponsoring the ballot initiative which seeks to revise existing voter ID laws for in-person voting and vote-by-mail ballots, as well as individuals who return another voter’s ballot.

Paperwork for the “Arizonans for Voter ID Act” initiative was filed Monday with the Arizona Secretary of State’s Office by committee chair Vicki Vaughn and Bill Luhrs, committee treasurer.

House Majority Leader Ben Toma (R-LD22) will join other lawmakers, including Senators Warren Petersen (R-LD12) and J.D. Mesnard (R-LD17), for a press conference Tuesday at 1:45 p.m. on the Senate lawn to formally launch the initiative effort.

“The vast majority of Arizona voters support voter ID because it is a common-sense and critical election integrity practice that is increasingly implemented around the country,” according to Scot Mussi, president of the Arizona Free Enterprise Club. “This initiative will ensure that no matter when you vote, where you vote, or how you vote, identification will be required.”

In addition to Arizona Free Enterprise Club, other coalition members include The Goldwater Institute, Heritage Action for America, Republican Liberty Caucus of Arizona, Foundation for Government Accountability, Arizona Women of Action, AMAC Action, and the Honest Elections Project Action.

“Election experts have always recognized voting by mail as the voting method most susceptible to error and fraud,” said Jason Snead, executive director of Honest Elections Project Action. “Adding objective identification requirements to Arizona’s mail-in ballots builds voter confidence in elections by ensuring only legal votes are accepted and counted.”

Under the Act, voters who receive their ballot by mail would still sign the voter affidavit section, but would also include their date of birth, In addition, the voter would need to include the last four digits of their social security number, Arizona driver’s license number, or state identification card.

“Arizonans show identification all the time in their daily lives to purchase alcohol, receive unemployment benefits, make major transactions, and board a plane, among others. Requiring identification before casting a ballot is necessary for our elections,” Vaughn said in announcing that the process got underway Monday.

Those interested in more information about the initiative can contact info@azvoterid.com.