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Arizona Free Printable Form 140 instructions for 2024 Arizona Income Tax Instruction Packet

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Income Tax Instruction Packet
Form 140 instructions

Arizona Form 140 2023 Resident Personal Income Tax Return For information or help, call one of the numbers listed: Phoenix (602) 255-3381 From area codes 520 and 928, toll-free (800) 352-4090 Tax forms, instructions, and other tax information If you need tax forms, instructions, and other tax information, go to the department’s website at www.azdor.gov. Income Tax Procedures and Rulings These instructions may refer to the department’s income tax procedures and rulings for more information. To view or print these, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. Leave the Paper Behind - e-file! • • • • Quicker Refunds Accurate Proof of Acceptance Free ** No more paper, math errors, or mailing delays when you e-file! Get your refund quicker with direct deposit. E-file today and pay by April 15, 2024 to avoid penalties and interest. E-file through an authorized IRS/DOR e-file provider or by using your personal computer and the Internet. Visit our website at www.azdor.gov for a listing of approved e-file providers and on-line filing sources. ** For free e-file requirements, check out our website at www.azdor.gov. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2023 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. You are claiming estimated payments. • • You received the 2023 Arizona Families Tax Rebate and are subtracting the amount of your rebate received from Arizona gross income (see page 6, item “U”). • Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: • Single • Married filing joint • Married filing separate • Head of Household and your gross income is more than: $ 13,850 $ 27,700 $ 13,850 $ 20,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. To see if you have to file, figure your gross income the same as you would figure your gross income for federal income tax purposes. Then, you should exclude income that Arizona law does not tax. Income that Arizona law does not tax includes: • interest from U.S. Government obligations; • social security retirement benefits received under Title II of the Social Security Act; • benefits received under the Railroad Retirement Act, tier 1 or tier 2 railroad retirement benefits, railroad disability benefits reported on federal forms RRB-1099 and RRB1099-R, railroad unemployment benefits and railroad sickness payments paid by the Railroad Retirement Board; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. Do You Have to File if You Are an American Indian? You must file if you meet the Arizona filing requirements unless all the following apply to you: • You are an enrolled member of an Indian tribe. • You live on the reservation established for that tribe. • You earned all of your income on that reservation. Arizona Form 140 For information on the Arizona tax treatment of American Indians, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. information, see the department’s procedure, ITP 92-1, Procedure For Determining Residency Status. Residents Do You Have to File if You Are the Spouse of an American Indian and You Are Not an Enrolled Indian? You are a resident of Arizona if your domicile is in Arizona. Domicile is the place where you have your permanent home. It is where you intend to return if you are living or working temporarily in another state or country. If you leave Arizona for a temporary period, you are still an Arizona resident while gone. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. You must file if you meet the Arizona filing requirements. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Do You Have to File if You Are in the Military? Part-Year Residents You must file if you meet the Arizona filing requirements unless all of the following apply to you: • You are an active duty member of the United States armed forces. • Your only income for the taxable year is pay received for active duty military service. • There was no Arizona tax withheld from your active duty military pay. If you are a part-year resident, you must file Arizona Form 140PY, Part-Year Resident Personal Income Tax Return. You are a part-year resident if you did either of the following during 2023: • You moved into Arizona with the intent of becoming a resident. • You moved out of Arizona with the intent of giving up your Arizona residency. If Arizona tax was withheld from your active duty military pay, you must file an Arizona income tax return to claim any refund you may be due from that withholding. Nonresidents If you are a nonresident (including nonresident aliens), you must file Arizona Form 140NR, Nonresident Personal Income Tax Return. You must also file an Arizona income tax return if you have any other income besides pay received for active duty military service. What if a Taxpayer Died? If you were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. If a taxpayer died before filing a return for 2023, the taxpayer's spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer’s property. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If the deceased taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person who files the return should use the form the taxpayer would have used. The person who files the return should print the word "deceased" after the decedent's name and enter the date of death after the decedent's name. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. If your spouse died in 2023 and you did not remarry in 2023 or if your spouse died in 2024 before filing a return for 2023, you may file a joint return. If your spouse died in 2023, the joint return should show your spouse's 2023 income before death and your income for all of 2023. If your spouse died in 2024, before filing the 2023 return, the joint return should show all of your income and all of your spouse's income for 2023. Print "Filing as surviving spouse" in the area where you sign the return. If someone else is the personal representative, he or she must also sign the return. To find out more, see the department’s publication, Pub. 704, Taxpayers in the Military. If You Included Your Child's Unearned Income on Your Federal Return, Does Your Child Have to File an Arizona Return? No. In this case, the child should not file an Arizona return. The parent must include that same income in his or her Arizona taxable income. Are Any Other Returns Required? You may also have to file a fiduciary income tax return (Form 141AZ). For details about filing a fiduciary income tax return, call the department at (602) 255-3381. Determining Residency Status If you are not sure if you are an Arizona resident for state income tax purposes, we may be able to help. For more 2 Arizona Form 140 Claiming a Refund for a Deceased Taxpayer What if You File or Pay Late? If you are claiming a refund for a deceased taxpayer, you must complete Arizona Form 131, Claim for Refund on Behalf of Deceased Taxpayer. Place the form behind the 140 return, when mailing Form 140. If you file or pay late, we will charge you interest and penalties on the amount you owe. If the U.S. Post Office postmarks your 2023 calendar year return by April 15, 2024 your return will not be late. You may also use certain private delivery services designated by the Internal Revenue Service (IRS) to meet the “timely mailing as timely filed” rule. For more information, see “Mailing Your Return” at the end of these instructions. If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140-SBI when mailing both returns. Late Filing Penalty If you file late, we will charge you a late filing penalty. This penalty is 4½% (.045) of the tax required to be shown on the return for each month or fraction of a month the return is late. This penalty cannot exceed 25% (.25) of the tax found to be remaining due. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. Late Payment Penalty If you pay your tax late, we will charge you a late payment penalty. This penalty is ½ of 1% (.005) of the amount shown as tax for each month or fraction of a month for which the failure continues. We charge this penalty from the original due date of the return until the date you pay the tax. This penalty cannot exceed a total of 10% (.10) of the unpaid tax. When Should You File? Your 2023 calendar year tax return is due no later than midnight, April 15, 2024. File your return as soon as you can after January 1, 2024 but no later than April 15, 2024. If you are a fiscal year filer, your return is due on the 15th day of the fourth month following the close of your fiscal tax year. Extension Underpayment Penalty If you file your return under an extension, you must pay 90% (.90) of the tax shown on your return by the return's original due date. If you do not pay this amount, we will charge you a penalty. This penalty is ½ of 1% (.005) of the tax not paid for each 30-day period or a fraction of a 30-day period. We charge this penalty from the original due date of the return until the date you pay the tax. This penalty cannot exceed 25% (.25) of the unpaid tax. If we charge you the extension underpayment penalty, we will not charge you the late payment penalty under Arizona Revised Statutes (A.R.S.) § 42-1125(D). What if You Cannot File on Time? You may request an automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2023 calendar year tax return, your due date is October 15, 2024 to timely file your 2023 tax return. NOTE: An extension does not extend the time to pay your income tax. See the instructions for Arizona Form 204. To get a filing extension, you can either • • Apply for a state extension (Arizona Form 204). To apply for a state extension, file Form 204 by April 15, 2024. See Form 204 for details. You do not have to include a copy of the extension with your return when you file, but make sure that you check box 82F (above your name) on page 1 of the return. If you must make a payment, use Arizona Form 204, or visit www.AZTaxes.gov to make an electronic payment. NOTE: If you are subject to two or more of the above penalties, the total cannot exceed 25%. Interest We charge interest on any tax not paid by the due date. We will charge you interest even if you have an extension. If you have an extension, we will charge you interest from the original due date until the date you pay the tax. The Arizona interest rate is the same as the federal rate. Use your federal extension (federal Form 4868). File your Arizona return by the same due date. You do not have to include a copy of your federal extension with your return, but make sure that you check box 82F (above your name) on page 1 of the return. When Should You Amend a Return? If you need to make changes to your return after you have filed, do not file a new return using Form 140. You must file Arizona Form 140X, Individual Amended Income Tax Return. File your amended return after your original return has processed. Generally, you have four years to amend a return to claim a refund. When Should You File if You Are a Nonresident Alien? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s). If you amend your federal return for any year, you must also file an Arizona Form 140X for that year. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file 3 Arizona Form 140 Can You Make Estimated Payments Even if You Do Not Have To? Form 140X within 90 days of the final determination of the IRS. You may use one of the following two options to report this change. If you do not have to make Arizona estimated income tax payments, you may still choose to make them. For details, see Arizona Form 140ES. Option 1 You may file a Form 140X for that year. If you choose this option, you must amend and mail your Arizona return within 90 days of the final determination of the IRS. Include a complete copy of the federal notice with your Form 140X. Line-by-Line Instructions Tips for Preparing Your Return Option 2 You may file a copy of the final federal notice with the department within 90 days of the final determination of the IRS. If you choose this option, you must include a statement in which you must: 1. Request that the department recompute your tax and 2. Indicate if you agree or disagree with the federal notice. • Make sure that you enter your Social Security Number (SSN) on your return. Complete your return using black ink. You must round dollar amounts to the nearest whole dollar. If 50 cents or more, round up to the next dollar. If less than 50 cents, round down. Do not enter cents. If you are mailing your return, see the last page of these instructions for the assembly order. Make sure you include your daytime telephone number. If filing a fiscal year return, fill in the period covered. • • • Individual Income Audit Arizona Department of Revenue PO Box 29084 Phoenix, AZ 85038-9084 DO YOU HAVE A COMPLICATED RETURN? Do You Need to Make Arizona Estimated Payments in 2024? E-file makes filing E-file software offers: a complex return • easy step-by-step instructions simple! • You must make Arizona estimated income tax payments during 2024 if: Single Married filing joint Married filing separate Head of Household You must complete your federal return before you can start your Arizona return. • • If you do not agree with the federal notice, you must also include any documents that show why you do not agree. If you choose Option 2, mail the federal notice and any other documents to Your filing status is: • AND AND your Arizona gross income for 2023 was greater than: $ 75,000 your Arizona gross income for 2024 is greater than: $ 75,000 $ 150,000 $ 150,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 For a list of • approved software • visit www.azdor.gov error detection before filing Easy form selection Maximum deductions Entering Your Name, Address and SSN Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure you enter your SSNs in the same order every year. If you met the income threshold for 2023, you must make estimated payments during 2024 unless you are sure you will not meet the threshold for 2024. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2023 Form 140. Enter your name, address, and SSN in the space provided. If you are filing a joint return, enter your SSNs in the same order as your first names. If your name appears first on the return, make sure your SSN is the first number listed. If you are married filing separately, enter your name and SSN on the first line 1. Enter your spouse’s name and SSN on the second line 1. Use the worksheet for Arizona Form 140ES to figure how much your payments should be. For more information about making estimated payments, see the department’s publication, Pub. 012, Arizona Individual Estimated Income Tax Payments. Make sure that you enter your SSN on your return. Make sure that all SSNs are clear and correct. You may be subject to a penalty if you fail to include your SSN. It will take longer to process your return if SSNs are missing, incorrect, or unclear. What if You Make Your Estimated Payments Late? We will charge you a penalty if you are late or if you fail to make any required payments. See Arizona Form 221. 4 Arizona Form 140 Use your current home address. The department will mail your refund to or correspond with you at that address. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident spouse, see the department’s ruling, ITR 14-1, Filing a Joint Tax Return When a Resident Spouse is Married to a Part-Year Resident or Nonresident. For a deceased taxpayer, see page 2 of these instructions. Foreign Addresses If you have a foreign address, enter the information in the following order: city, province or state, and country. Follow the country’s practice for entering the postal code. Do not abbreviate the country name. Box 4a - Injured Spouse Protection of Joint Overpayment Last Names Used in Last 4 Prior Years Check box 4a only if you and your spouse are filing a joint return and you or your spouse qualify as an injured spouse and are requesting protection from application of any joint overpayment against the other spouse’s delinquencies or debts for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. If the last name that you or your spouse are using on this return is not the same as the last name you or your spouse used on returns filed in the last 4 years, enter any other last name(s) that you or your spouse used when filing your return during that period. Identification Numbers for Paid Preparers If you pay someone else to prepare your return, that person must also include an identification number where requested. A paid preparer may use any of the following: • his or her PTIN; • his or her SSN; or • the EIN for the business. NOTE: You cannot use Form 203 to request protection from offset for past-due federal taxes. You must contact the IRS. You must complete Arizona Form 203, Request for Injured Spouse Protection from Application of Joint Overpayment Against Spouse’s Delinquencies and Debts, and include that form with your tax return when filed. For more information, see the instructions for Form 203. A paid preparer who fails to include the proper identification number may also be subject to a penalty. Determining Your Filing Status Box 5 - Head of Household Return The filing status that you use on your Arizona return may be different from that used on your federal return. If you are filing as a head of household, check box 5. Enter the name of the qualifying child or dependent in the space provided. You may file as head of household on your Arizona return only if one of the following applies: • You qualify to file as head of household on your federal return; or • You qualify to file as a qualifying widow or widower on your federal return. Use this section to determine your filing status. Check the correct box (4 through 7) on the front of Form 140. If you qualify as married for federal purposes, you qualify as married for Arizona purposes and must file using the status of either married filing joint or married filing separate. If you are single, you must file as single or if qualified you may file as head of household (see the instructions for box 5). Box 6 - Married Filing Separate Return Box 4 - Married Filing Joint Return If you are married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you are married and filing a joint return, check box 4. You may file a joint return if you were married as of December 31, 2023. It does not matter whether or not you were living with your spouse. You may file a joint return, even if you and your spouse filed separate federal returns. If you were married as of December 31, 2023, you may choose to file a separate return. You may file a separate return, even if you and your spouse filed a joint federal return. Arizona is a community property state. If you file a separate return, you must figure out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. You may file a joint return if your spouse died during 2023 and you did not remarry in 2023. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. 5 Arizona Form 140 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. • Box 9 - Blind NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If you or your spouse were partially blind as of December 31, 2023, you must get a statement certified by your eye doctor or registered optometrist that either: • If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. See the department’s ruling, ITR 93-20, Income Reporting Requirements of Resident and Nonresident Spouses Who File Separate Arizona Individual Income Tax Returns; and see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2023. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2023, and you did not remarry in 2023, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. • • NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. If you are married filing a joint return, enter "1" in box 9 if you or your spouse is totally or partially blind. Enter "2" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Exemptions - Boxes 8, 9, and 11a Box 11a - Qualifying Parents and Grandparents Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2024 (born 1/1/1959), that person is considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. Box 7 - Single Return • Enter "2" in box 8 if both you and your spouse were 65 or older in 2023 and neither of you are claimed as a dependent by another taxpayer. If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2023 and not claimed as a dependent by another taxpayer. A qualifying parent or grandparent may be any one of the following: If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2023 and not claimed as a dependent by another taxpayer. • • 6 Your parent, grandparent, or great-grandparent, etc. If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. Arizona Form 140 You may claim this exemption if all of the following apply: You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2023. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. Dependents - Boxes 10a and 10b If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. 3. Boxes 10a and 10b You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: a) b) c) d) Temporary absences: Your child or dependent is considered to have lived with you during periods of time when temporarily absent due to special circumstances such as: illness, education, business, or vacation. Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. e) - check box 1 (for box 10a) if this person is under the age of 17 or - check box 2 (for box 10b) if this person is age 17 or over; and f) check the box if you did not claim this person on your federal return due to educational credits. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c NOTE: If you did not claim a dependent who is a student on your federal return in order to allow the student to claim a federal education credit on the student’s federal return, you may still claim the dependent on your Arizona return. For more information, see the department’s ruling, ITR 05-2, Will Arizona Allow a Dependent Exemption When a Taxpayer Does Not Claim Federal Exemption in Order to Claim the Education Credit? For each qualifying parent and grandparent, enter the following information: a) b) c) d) e) f) first and last name; social security number; relationship to taxpayer; the number of months this person lived in your home; first and last name; social security number; relationship to taxpayer; the number of months this person lived in your home; check this box if the person is age 65 or over; check this box if the person died in 2023. 7 Arizona Form 140 You may lose the dependent tax credit if you do not furnish this information. Enter the total number of dependents in box 10a and 10b. NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140-SBI form instructions for completing a “zero” tax return. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2023 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Subtract line 13 from line 12. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Line 14 – Modified Federal Adjusted Gross Income Additions to Income • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2024?" on page 4. Arizona Small Business Income Tax Return Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140SBI and instructions. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. Modified Federal Adjusted Gross Income If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on 8 Arizona Form 140 Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. Use line 18 if any of the following special circumstances apply. D. Items Previously Deducted for Arizona Purposes NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. Arizona statutes prohibit a taxpayer from deducting items more than once. If your Arizona taxable income includes items previously deducted for Arizona purposes, you must add such amounts to your Arizona gross income. If you are not reporting any adjustment on line 18, do not include page 5 with your return. E. Claim of Right Adjustment for Amounts Repaid in 2023 You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2023, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. You must make an entry here if all of the following apply: • During 2023, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2023 was more than $3,000. • You took a deduction for the amount repaid on your 2023 federal income tax return. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If the above apply, include the amount deducted on your federal income tax return. For more information on the Arizona claim of right provisions, see the department’s procedure, ITP 16-1, Procedure for Individuals Who Restore Substantial Amounts Held under a Claim of Right. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. F(a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2023, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount 9 Arizona Form 140 • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2023 Arizona taxable income. H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) • The amount of the loss carryover included in your federal income is more than the amount allowed to be taken into account for Arizona purposes. If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Include the amount by which the loss carryover included in your federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). F(b). Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is pollution control equipment for which a credit (Form 315) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1081 (Credit 315). G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: Shareholders of an S corporation who claim a credit passed through from an S corporation must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. • • You received a nonqualified withdrawal from a 529 college savings plan. You did not include the amount of the withdrawal in your federal adjusted gross income. An S corporation that passes the following credits through to its shareholders must notify each shareholder of his or her pro rata share of the adjustment (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) • If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. • A nonqualified withdrawal is a withdrawal other than any of the following: The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338). 10 A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary. Arizona Form 140 J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. If you are registered as an Arizona sole proprietorship with the Arizona Department of Health Services to operate in this state as a nonprofit medical marijuana dispensary, you are required to add the amount of the loss from the dispensary that is included in the computation of your federal adjusted gross income. Include the amount of the loss. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: If the Arizona nonprofit medical marijuana dispensary is registered with the Arizona Department of Health Services as anything other than a sole proprietorship, this addition does not apply. If a subtraction is taken on line 36, Other Subtractions from Income (Item M), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care facility under Arizona law in effect before 1990 and you are still deducting amortization or depreciation for that facility on your federal income tax return. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. To determine if you are required to make this addition to income, you must net all gains and (losses) from all exchanges of one kind of legal tender for another kind of legal tender, including amounts shown on Form 165 Schedule K-1, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. Enter the amount of any net capital (loss) included in Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another kind of legal tender. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. NOTE: If the amount from all sources results in a net capital gain from the exchange of one kind of tender for another kind of tender, enter that amount page 6, “R”. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the 11 Arizona Form 140 For the purposes of this paragraph: credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. (a) "Legal tender" means a medium of exchange, including specie that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues. • (b) "Specie" means coins having precious metal content. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2023. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. S. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of tax paid shown on: • • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. Other adjustments may be necessary. For example, you must add-back expenses related to income that Arizona does not tax. If you have more than one Other Adjustment, add the amounts together and enter the total. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2023. Tax amounts paid in 2024 for tax year 2023 will be added-back on your 2024 tax return. These payments include any 4th QTR estimated taxes paid in January 2024 and any 2024 tax payments made with the Entity’s tax return on your behalf. T. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Q. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. R. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) You may also need to make an addition if you claimed certain tax credits. • NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2023, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a 12 Arizona Form 140 If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. If you did not complete the worksheet and you have no net longterm capital gain from assets acquired after December 31, 2011, enter zero, “0”. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. You may subtract 25% (.25) of any net long-term capital gain included in your federal adjusted gross income that is derived from an investment in an asset acquired after December 31, 2011. Complete the Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired after December 31, 2011, at the end of these instructions to determine the allowable subtraction. Keep the worksheet for your records. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. NOTE: If you are not required to report dividend distributions and/or short-term capital gains from mutual funds on federal Form Schedule D, do not include the short-term capital gain distributed by the mutual fund on line 21. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this cas
Extracted from PDF file 2023-arizona-form-140-instructions.pdf, last modified January 2024

More about the Arizona Form 140 Instructions Individual Income Tax TY 2023

Packet of instructions and forms for filling out your Arizona Form 140 tax return.

We last updated the Income Tax Instruction Packet in January 2024, so this is the latest version of Form 140 Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 140 Instructions directly from TaxFormFinder. You can print other Arizona tax forms here.

Other Arizona Individual Income Tax Forms:

TaxFormFinder has an additional 95 Arizona income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 140 Resident Personal Income Tax Return
Form 140 Instructions Income Tax Instruction Packet
Form 140A Resident Personal Income Tax (Short) Package
Form 204 Application for Filing Extension
Form 321 Credit for Contributions to Qualifying Charitable Organizations

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Form Sources:

Arizona usually releases forms for the current tax year between January and April. We last updated Arizona Form 140 Instructions from the Department of Revenue in January 2024.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Arizona Form 140 Instructions

We have a total of nine past-year versions of Form 140 Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2017 Form 140 Instructions

140 instructions 2015

2016 Form 140 Instructions

140 instructions 2015

2015 Form 140 Instructions

Microsoft Word - 140 instructions


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