Arizona taxes are due April 15. Experts share their best tips

Arizona taxpayers have one week left to file their 2025 state and federal income tax returns before the April 15 deadline.

Phoenix CPA Robert Hockensmith said taxpayers who are not ready to file should not panic, but they should act.

“The worst thing you can do is ignore it,” Hockensmith said in an interview April 8.

With days remaining, tax professionals and financial advisers say the priority is to determine whether you owe money, submit payment on time and file an extension if necessary.

Here’s what you should know with about a week left before the filing deadline.

An extension buys time to file, not to pay

Tax preparers across Arizona say the final week before the deadline is one of their busiest periods of the year, as clients rush to finalize returns or request extensions.

The Internal Revenue Service says an extension moves the filing deadline to Oct. 15 but does not extend the payment deadline. Taxes owed are still due April 15.

Without an extension, the IRS may charge a failure-to-file penalty of 5% per month on unpaid taxes, capped at 25%, Hockensmith said. With an extension, the failure-to-pay penalty is generally 0.5% per month on unpaid taxes. Interest accrues separately on unpaid balances, Hockensmith said.

MORE: Gov. Katie Hobbs vetoes GOP tax cut policy. What it means for you

Scottsdale financial planner Nayan Ranchhod said taxpayers who expect to owe should send an estimated payment with their extension request.

“You can file an extension, but the tax bill is due on the 15th,” Ranchhod said in a phone interview.

“If you’re going to owe, make sure you send an estimated payment so there are no penalties after the 15th.”

Nate Thorne, an enrolled agent and founder of CFO On Call in Scottsdale, echoed that advice. He said his office has been busy with extension requests this week.

“File for an extension,” Thorne said. “That’s my advice.”

Who should consider filing an extension?

Hockensmith said business owners, people waiting on K-1 forms from partnerships or private investments and taxpayers whose books are not finalized often benefit from filing an extension.

Taxpayers who experienced major life changes in 2025, including marriage, divorce, inheritance or the birth of a child, should also review their returns carefully before filing, he said.

Newly married couples in particular often do not realize they may benefit from filing jointly rather than separately.

Ranchhod agreed that complex income situations and partnership reporting frequently require additional time.

“If you’re a business owner and your books aren’t done yet, that’s usually the precedent on which to make that decision,” Ranchhod said.

Arizona conformity still pending

Arizona lawmakers have not yet adopted federal tax changes for state returns. Republican leaders want full conformity with the One Big Beautiful Bill Act, the federal law signed in July 2025.

Gov. Katie Hobbs has pushed for partial conformity, creating a standoff that has left some tax preparers unsure whether to file state returns now or wait.

But Republican and Democratic lawmakers have both urged Arizonans to file now. Senate President Warren Petersen, R-Gilbert, said taxpayers should file with confidence that full conformity will pass.

Senate Minority Leader Priya Sundareshan, D-Tucson, said most filers taking the standard deduction will not be affected.

Hockensmith said Arizona historically conforms to federal tax rules and advised clients to file rather than delay.

“If they don’t conform, we can do an amended return,” he said, adding that nonconformity is unlikely.

The Arizona Department of Revenue has said current state tax forms are valid and can be used now. However, if lawmakers pass a bill that does not include full conformity, some filers may need to amend their 2025 state returns.

Which new federal deductions for 2025 can I claim?

Federal legislation approved in 2025 created four new deductions that apply through 2028. A TurboTax analysis by attorney Rocky Mengle notes that all four phase out at higher income levels.

The IRS says seniors age 65 and older may claim an additional $6,000 deduction. Married couples filing jointly may claim up to $12,000 if both spouses qualify.

Workers who receive taxable tips may deduct up to $25,000 in qualified tip income. Overtime pay is deductible up to $12,500 for individuals, or $25,000 for married couples filing jointly.

Hockensmith said taxpayers should review Box 14 of their W-2 forms for tip and overtime amounts. Employers were required to report those figures there, and taxpayers need that information to claim the deductions.

He said some employers initially struggled to set up the new reporting requirements.

Taxpayers may also deduct up to $10,000 in interest paid on a loan taken out after 2024 to purchase a new car, van, truck or motorcycle, as long as the final assembly occurred in the United States.

Hockensmith said the provision revives a deduction that has not been widely available in decades.

Taxpayers who itemize may continue to deduct sales tax and registration fees on vehicle purchases. The IRS does not automatically apply these deductions. Taxpayers must claim them on their returns.

Ranchhod said his firm is helping eligible clients manage their modified adjusted gross income to remain below thresholds tied to the senior deduction.

Last-minute moves you can make that can still lower your tax bill

Taxpayers can still take certain steps before April 15 that may reduce their 2025 taxable income.

Ranchhod said traditional IRA and health savings account contributions must be completed by April 15 to count for the 2025 tax year.

Roth IRA contributions may also be made by the deadline, but do not reduce current taxable income because they are funded with after-tax dollars.

“Those are really the big ones between now and the 15th that are going to move the needle,” Ranchhod said.

Self-employed taxpayers may contribute to a Simplified Employee Pension, or SEP IRA, subject to a $70,000 annual limit.

Hockensmith said taxpayers who made energy-efficient home improvements in 2025, such as replacing an air conditioner, installing a heat pump, upgrading insulation or adding solar panels, may qualify for a federal tax credit worth up to $1,200.

He said recent federal changes may reduce the value of those credits in future years.

Parents who paid for daycare in 2025 may also qualify for a childcare tax credit if the care was necessary for work or school.

Arizona taxpayers may make qualifying donations before April 15 to claim certain state tax credits. Those contributions must be completed before the filing deadline to apply to the prior tax year.

What if I can’t pay your taxes in full?

Taxpayers who cannot pay in full may apply for an installment agreement using IRS Form 9465. The streamlined option is available for balances of $66,000 or less.

Hockensmith said the IRS charges a setup fee that can exceed $200 but drops to roughly $30 for taxpayers who authorize automatic withdrawals from a checking account. Interest continues to accrue until the balance is paid.