Let’s be honest – nobody wants to get into legal trouble. It costs you a lot of money and causes a lot of stress – so it’s much better to avoid getting into problems with legal authorities. For example, filing and paying your taxes can save you from that legal trouble. 

Are you at a loss when it comes to paying your taxes in Arizona? Say no more, because we’ll tell you what you need to know in this regard. 

How To Make Tax Payments?

Paying taxes is not that difficult, but some people may be confused if it’s the first time they have encountered this scenario. 

In order to pay an individual Arizona income tax, you can either do it by mail or electronically. By mail, the payment has to be sent to the Arizona Department of Revenue. When sending the payment, you will have to attach the top part of the billing notice that you got to the address of the Department of Revenue. There is also a PO Box where you can send the payments if you don’t receive a billing notice. 

Meanwhile, if you decide to make the payment electronically, you will be able to authorize the withdrawal of electronic funds from a savings or checking account. This will come in handy if you want to settle for this method. 

If you have filed a tax return already and want to make a payment, you can do it by using www.AZTaxes.gov. All you need is a MasterCard or Visa debit or credit card, but the website accepts payments from most of the big card brands, so you won’t have trouble paying. Also, if you filed your return yet didn’t enclose payment, you can use an e-check or credit card under “Make a Payment” and “140V” to make a payment online.

It’s also important to keep in mind that you will have to provide a few things in order to pay successfully. That being said, you have to bring your tax identification numbers, as well as the tax periods for which you are making the payments. You don’t have to send a copy of the return with your payment if you have already filed your tax returns and remitted your payment separately.

Also, you can ask to make the payments in monthly installments if you are unable to pay the full amount you owe. You have to wait for ADOR to process your return in order to make this request. 

Requesting Extensions

If you want to file an extension on a return, you can do so using Arizona Form 204. This will let you apply for an extension of six months. In case you filed the form for an automatic six-month extension, January 15, 2021, is the due date for the Arizona tax return. 

Bear in mind that at least 90% of the tax has to be paid by April 15 to avoid extension underpayment penalties. 

Arizona Form 204 is not necessary for people who file under a federal extension or make the Arizona extension payment electronically. 

Using PAYE  

‘Pay as you earn’ or PAYE allows employees earning a salary or wage to pay tax on their income. The employer deducts PAYE tax from the employee’s pay and sends it to revenue service. They can also deduct their student loan repayments, child support payments, and other contributions as PAYE deductions. 

PAYE is utilized in different countries, such as New Zealand, the United Kingdom, and Africa. In the United States, such a system for paying taxes is known as ‘pay as you go.’ Moreover, PAYE loan repayment is also available, depending on how much the borrower earns. This income-driven repayment plan applies to eligible federal student loan borrowers, which can reduce their monthly debt payment to 10%. 

Employees and employers can use a PAYE calculator to determine how much must be withheld from salaries or wages. Employers computing for several employees can obtain a breakdown for each employee and the total withheld PAYE amount.  

Using PAYE is convenient because you don’t have to hire an accountant or arrange your indemnity insurance. Moreover, you don’t have to keep track of all receipts or submit tax returns. For employees, receiving wages via PAYE can help ensure no record gaps for full entitlement to pension, bereavement, maternity, and other non-contribution or contribution-based benefits.

Final Thoughts

Unless you want to spend money on tax issues attorneys in AZ, you should know how to pay taxes and stay out of legal trouble. Use all the tips here, and you will be safe.