Tax Relief – What Types of Relief Are Available?
If you’re overwhelmed by the amount of back taxes you owe, you might be interested in Arizona tax relief. There are many ways to get help, but a tax relief lawyer can work with the IRS to find the best solution for you. Tax attorneys can negotiate a payment plan that helps you pay back taxes over time. This arrangement allows you to make small payments each month to the government. While you may not be able to pay off the entire balance at once, penalties and interest charges will continue to accumulate until you’ve paid off the debt. Moreover, the government can put a tax lien on your property, so you might need to seek tax relief in Arizona to avoid any consequences.
In 2018, Arizona’s tax relief budget was approved by policymakers. It includes a historic tax cut of $1.9 billion, which lowers personal income tax rates for most Arizonans to 2.5%. This tax relief plan also caps the rate for high earners at 4.5%. It will not only lower income tax burdens, but also foster economic growth in the state for decades to come. With these tax cuts, the state will be able to attract more people and investments to its economy.
Another type of Arizona tax relief involves property tax deferral. Senior citizens can defer their property taxes if their income is below a certain amount. If their total annual income falls below $40,368 in 2022, they will not be subject to an increase in property taxes. For a property to qualify for tax deferral, it needs to be the primary residence of the owner. A tax freeze can also be a great way to put off paying property taxes until you sell it.
