Arizona taxed unemployment benefits in the same manner as federal tax. Arizona typically taxes unemployment benefits in the same way as federal law. The state also enacted the federal exemption of up to $10,000 of unemployment benefits received in 2020. To receive a refund for the Arizona tax overpaid for income those who earned unemployment compensation in 2020 have to modify their Arizona energyfashion energy fashion Website energy fashion us tax returns. Taxpayers who filed their Arizona tax return following the 11th of March, 2021 most likely already have received the exemption. They shouldn’t make an amendment to their Arizona return. Taxpayers who received federal income tax refunds or unemployment payments from IRS must amend their 2020 Arizona returns, regardless of the date they filed them.