Well RollTide68 I think you are correct.  I just found a ruling online for this ARIZONA INDIVIDUAL INCOME TAX RULING ITR 11 -3 and it just states that the $3500 is it after Dec 31, 2018.  It use to be $2,500.  Hopefully my client will agree.  I doubt he will try to find something to dispute it.  I think his information is all hearsay.  I went to the DFAS website and nothing there specific to AZ.