Dependents and Exemptions
NOTE: If a person who qualifies as your dependent is also a qualifying parent or grandparent, you may claim that person as a dependent in box 10, or you may claim that person as a qualifying parent or grandparent in box 11. You may not claim that same person in both box 10 and box 11.
You must complete the Dependent Section on page 1 (and page 3, if more space is needed) of your return before you can total your dependent exemptions. You may claim only the following as a dependent:
- A person that qualifies as your dependent on your federal return. NOTE: If you do not claim a dependent exemption for a student on your federal return in order to allow the student to claim a federal education credit on the student’s federal return, you may still claim the exemption on your Arizona return. For more information, see the department’s Individual Income Tax Ruling, ITR 05-2.
- A person who is age 65 or over (related to you or not) that does not qualify as your dependent on your federal return, but one of the following applies:
- In the current tax year, you paid more than one-fourth of the cost of keeping this person in an Arizona nursing care institution, an Arizona residential care institution, or an Arizona assisted living facility. Your cost must be more than $800.
- In the current tax year, you paid more than $800 for either Arizona home health care or other medical costs for the person.
- A stillborn child if the following apply:
- The stillbirth occurred during the current tax year.
- You received a certificate of birth resulting in stillbirth from the Arizona Department of Health Services.
- The child would have otherwise been a member of your household.
Qualifying Parents and Grandparents
NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may claim that person as a dependent in box 10, or you may claim that person as a qualifying parent or grandparent in box 11. You may not claim the same person as a dependent and a qualifying parent or grandparent.
You must complete the qualifying parents and grandparents section on page 1 (and page 3, if more space is needed) before you can total your exemptions for qualifying parents and grandparents.
A qualifying parent or grandparent may be any one of the following:
- Your parent, grandparent or great grandparent, etc.
- If married filing a joint return, your spouse’s parent, grandparent, or great grandparent, etc.
You may claim this exemption if all of the following apply:
- The parent, grandparent or great-grandparent was 65 years old or older during the tax year.
- The parent or grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence.
- You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s income tax procedure, ITP 14-1, and complete the worksheet. Keep the worksheet for your records.
- The parent or grandparent required assistance with activities of daily living.
The term “activities of daily living” means two or more of the listed categories activities of daily living. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation and transportation.
For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s Individual Income Tax Ruling, ITR 14-3.
To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s Individual Income Tax Procedure, ITP 14-2, and complete the check-list. Keep the check-list for your records.