There are only 26 days left until tax day on April 17th! eFile your return online here , or request a six-month extension here .

Arizona Free Printable 140 instructions 2015 for 2017 Arizona Income Tax Instruction Packet

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

We last updated the Income Tax Instruction Packet in January 2017, so this is the latest version of Form 140 Instructions, fully updated for tax year 2016. 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.

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2016-arizona-form-140-instructions.pdf, and you can print it directly from your computer.

Income Tax Instruction Packet
140 instructions 2015

Arizona Form 140 2016 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 and click on Legal Research then click on Procedures or Rulings and select a tax type from the drop down menu. Publications To view or print the department’s publications, go to our website and click on Publications. Leave the Paper Behind - e-file! • • • • Quicker Refunds Accurate Proof of Acceptance Free ** No more paper, math errors, or mailing delays if you e-file! Get your refund quicker with direct deposit. E-file today, pay by April 18, 2017, 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 efile providers and on-line filing sources. ** For free e-file requirements, go to our website at www.azdor.gov. Who Must Use Form 140? 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 Arizona adjusted gross income is at least: $ 5,500 or your gross income is at least: $11,000 $15,000 $ 5,500 $15,000 $ 5,500 $15,000 $15,000 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 Arizona law does not tax. Income 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 RRB1099 and RRB-1099-R, railroad unemployment benefits and railroad sickness payments paid by the Railroad Retirement Board, or • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces. You can find your Arizona adjusted gross income on page 2, line 42 of Arizona 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. 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. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2016 if any of the following apply to you: Do You Have to File if You Are an American Indian? • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. • 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 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. For information on the Arizona tax treatment of American Indians, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Arizona Form 140 Do You Have to File if You Are the Spouse of an American Indian and You Are Not an Enrolled Indian? If You Included Your Child's Unearned Income on Your Federal Return, Does Your Child Have to File an Arizona Return? 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. 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. Do You Have to File if You Are in the Military? Residency Status 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 not sure if you are an Arizona resident for state income tax purposes, we may be able to help. For more information, see the department’s procedure, ITP 92-1, Procedure For Determining Residency Status. Residents 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. A resident is subject to tax on all income no matter where the income is earned. 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. You must also file an Arizona income tax return if you have any other income besides pay received for active duty military service. Part-Year Residents 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 2016: • 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 you are an Arizona resident and you have to file an Arizona return, you should file using Form 140. If you were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where 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. Nonresidents If you are a nonresident, you must file Arizona Form 140NR, Nonresident Personal Income Tax Return. If you are not an Arizona resident, but stationed in Arizona, the following applies to you: What if a Taxpayer Died? • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona. Use Form 140NR, Nonresident Personal Income Tax Return, to report this income. If a taxpayer died before filing a return for 2016, 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. To find out more, see the department’s publication, Pub. 704, Taxpayers in the Military. 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. Also enter the date of death after the decedent's name. Find an Authorized e-file Provider An authorized e-file provider can take the guesswork out of filing taxes. If your spouse died in 2016 and you did not remarry in 2016 or if your spouse died in 2017 before filing a return for 2016, you may file a joint return. If your spouse died in 2016, the joint return should show your spouse's 2016 income before death and your income for all of 2016. If your spouse died in 2017, before filing the 2016 return, the joint return should show all of your income and all of your spouse's income for 2016. Print "Filing as surviving spouse" in the area where you To find an authorized e-file provider near you visit www.azdor.gov 2 Arizona Form 140 sign the return. If someone else is the personal representative, he or she must also sign the return. 6-month extension. This will allow you to file your return by October 16, 2017. See Form 204 for extension filing details. Are Any Other Returns Required? If you have a federal 6-month extension, you can file your Arizona return under that extension. If you file using your federal extension, Arizona will also allow you an extra 6 months. Because we will allow only 6 months, the due date for your Arizona return is not the same as the due date for your federal return. In this case, your Arizona return will be due by October 16, 2017, even though your federal return will not be due until December 15, 2017. If you file your 2016 Arizona calendar year return after October 16, 2017, your return will be late. 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. Claiming a Refund for a Deceased Taxpayer 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 completed Form 131 on top of the front of the return. What are the Filing Dates and Penalties? NOTE: Because October 15, 2017, falls on a Sunday, you have until Monday, October 16, 2017, to file your return. When Should You File? Your 2016 calendar year tax return is due no later than midnight, April 18, 2017. File your return as soon as you can after January 1, 2017, but no later than April 18, 2017. 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 year. What if You File or Pay Late? NOTE: Because April 15, 2017, falls on a Saturday and District of Columbia Emancipation Day will be observed on April 17, 2017, you have until April 18, 2017, to file your return. 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 2016 calendar year return by April 18, 2017, 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 a fiscal year filer, your return is due on the 15th day of the fourth month following the close of your fiscal tax year. What if You Cannot File on Time? You may request an extension if you know you will not be able to file on time. Late Filing Penalty NOTE: An extension does not extend the time to pay your income tax. See the instructions for Arizona Form 204. 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. 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 18, 2017. 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 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. 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. 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 on page 1 of the return. 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 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). NOTE: Because October 15, 2017, falls on a Sunday, you have until Monday, October 16, 2017, to file your return. When Should You File if You Are a Nonresident Alien? The due date for your Arizona return is not the same as the due date for your federal return. Your Arizona return is due by April 18, 2017, even though your federal return is due on June 15, 2017. If you want to file your Arizona return after April 18, 2017 you must ask for a filing extension. You must file this request by April 18, 2017. Arizona will allow up to a NOTE: If you are subject to two or more of the above penalties, the total cannot exceed 25%. 3 Arizona Form 140 Interest Head of Household Married Filing Separate 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. 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. $75,000 $75,000 See 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. If you amend your federal return for any year, you must also file an Arizona Form 140X for that year. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file 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. Can You Make Estimated Payments Even if You Do Not Have To? 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 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 DO YOU HAVE A COMPLICATED RETURN? 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. 2. Indicate if you agree or disagree with the federal notice. e-file software offers: e-file makes filing • easy step-by-step instructions a complex return • error detection before simple! filing 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: For a list of approved software visit www.azdor.gov Individual Income Audit Arizona Department of Revenue PO Box 29084 Phoenix, AZ 85038-9084 • • • Do You Need to Make Arizona Estimated Payments in 2017? • You must make estimated income tax payments during 2017 if: Married Filing Joint Single $75,000 If you met the income threshold for 2016, you must make estimated payments during 2017 unless you are sure you will not meet the threshold for 2017. As a full year resident, your Arizona gross income is your federal adjusted gross income. This amount is on page 1, line 12 of the 2016 Form 140. When Should You Amend a Return? Your filing status is: $75,000 AND your Arizona gross income for 2016 was greater than: AND your Arizona gross income for 2017 is greater than: $150,000 $75,000 $150,000 $75,000 • • • 4 • • Easy form selection Maximum deductions 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. When asked to provide your own schedule, include a separate sheet with your name and SSN at the top. Include your own schedules with your return. Include these schedules behind your return and behind your Schedule A, if itemizing. You must complete your federal return before you can start your Arizona return. Make sure you include your daytime telephone number. If filing a fiscal year return, fill in the period covered in the space provided at the top of the form. Arizona Form 140 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). Entering Your Name, Address, and SSN Lines 1, 2, and 3 - Box 4 - Married Filing Joint Return NOTE: Make sure that you write 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 are married and filing a joint return, check box 4. You may file a joint return if you were married as of December 31, 2016. 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. Print or type 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 names. If your name appears first on the return, make sure your SSN is the first number listed. You may file a joint return if your spouse died during 2016 and you did not remarry in 2016. See page 2 of these instructions for details. If you are married filing separately, enter your name and SSN on the first line 1. Then enter your spouse’s name and SSN on the second line 1. 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. If you are a nonresident of the United States or a resident alien who does not have an SSN, use the individual taxpayer identification number (ITIN) the IRS issued to you. 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. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. 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 a deceased taxpayer, see page 2 of these instructions. Foreign Addresses NOTE: 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. 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. Last Names Used in Last 4 Prior Years Box 5 - Head of Household Return 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 for the last 4 years, enter any other last name(s) that you or your spouse used when filing your return during the last 4 years. If you are filing as a head of household, check box 5 and 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. • You qualify to file as a qualifying widow or widower on your federal return. 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. Box 6 - Married Filing Separate Return If you are filing a separate return, check box 6 and enter your spouse's name and SSN on the second line 1. A paid preparer who fails to include the proper identification number may also be subject to a penalty. If you were married as of December 31, 2016, 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. Determining Your Filing Status The filing status that you use on your Arizona return may be different from that used on your federal return. Arizona is a community property state. If you file a separate return, you must figure 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. 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. When you file separate returns, you must account for community deductions and credits on the same basis as 5 Arizona Form 140 Box 8 - Age 65 or Over 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 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. 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 are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2016 and not claimed as a dependent by another taxpayer. • 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 2016 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2016 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 his/her own separate return. Box 9 - Blind 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, 93-20, Income Reporting Requirements of Resident and Nonresident Spouses Who File Separate Arizona Individual Income Tax Returns. For more help, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. If you or your spouse were partially blind as of December 31, 2016, you must get a statement certified by your eye doctor or registered optometrist that: Box 7 - Single Return 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 filing as single, check box 7. Use this filing status if you were single on December 31, 2016. 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, 2016, and you did not remarry in 2016, 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. • You cannot see better than 20/200 in your better eye with glasses or contact lenses. • Your field of vision is 20 degrees or less. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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. • 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 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 Enter the number of exemptions you are claiming in boxes 8, 9, 10, and 11. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. You may lose the dependent exemption if you do not complete the Dependent section, on page 1. Box 10 - Dependents NOTE: If a person who qualifies as your dependent is also a qualifying parent or grandparent, you may claim that person as a dependent in box 10, or you may claim that person as a qualifying parent or grandparent in box 11. You may not claim that same person in both box 10 and box 11. You may lose the exemption for qualifying parents or grandparents if you do not complete the Qualifying parents and grandparents section, on page 1. You must complete the Dependent section on page 1 (and page 3, if more space is needed) of your return before you can 6 Arizona Form 140 total your dependent exemptions. You may claim only the following as a dependent: • 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. A person that qualifies as your dependent on your federal return. NOTE: If you do not claim a dependent exemption for 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 exemption 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? • maintenance costs of the parent or grandparent during the taxable year. 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 income tax procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 431023(C) and complete the worksheet. Keep the worksheet for your records. A person who is age 65 or over (related to you or not) that does not qualify as your dependent on your federal return, but one of the following applies: 1. 2. • 3. You paid more than one-half of the support and In 2016, you paid more than one-fourth of the cost of keeping this person in an Arizona nursing care institution, an Arizona residential care institution, or an Arizona assisted living facility. Your cost must be more than $800. In 2016, you paid more than $800 for either Arizona home health care or other medical costs for the person. 4. The term “activities of daily living” means two or more of the 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, foodpreparation and transportation. A stillborn child if the following apply: 1. 2. 3. The stillbirth occurred during 2016. You received a certificate of birth resulting in stillbirth from the Arizona Department of Health Services. The child would have otherwise been a member of your household. 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). Box 11 - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may claim that person as a dependent in box 10, or you may claim that person as a qualifying parent or grandparent in box 11. You may not claim the same person in both box 10 and box 11. 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. You must complete the Qualifying parents and grandparents section on page 1 (and page 3, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent or great grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great grandparent, etc. Dependents Completing the Dependent Section If you need additional lines to list all of your dependents, including qualifying parents and grandparents, complete page 3, Dependent Information – Continuation Sheet, and include this page with your return. Be sure to check the box on page 1 indicating you are completing page 3. You may claim this exemption if all of the following apply: 1. The parent, grandparent or great-grandparent was 65 years old or older during 2016. 2. The parent or grandparent lived in your principal residence for the entire taxable year. The parent or grandparent required assistance with activities of daily living. Do not include page 3 with your return if you do not use it. 7 Arizona Form 140 Dependent information: dependents children and other to determine your federal adjusted gross income, even if you are not filing a federal return. 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. Enter the following in columns (a) through (f): a) The dependent's name. If you are claiming an exemption for a stillborn child and the child was not named, enter “stillborn child” in place of a name. b) The dependent's SSN. If you are claiming an exemption for a stillborn child, enter the certificate number from the certificate of birth resulting in stillbirth. c) The dependent’s relationship to you. d) The number of months the dependent lived in your home during 2016. If you are claiming an exemption for a stillborn child, enter the date of birth resulting in the stillbirth. 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 the box if this person did not qualify as a dependent on your federal return. f) Check the box if you did not claim this person (student) as an dependent on your federal return in order to allow that student to claim a federal education credit on the student’s federal return. 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 2017?" on page 4. Additions to Income Line 13 - Non-Arizona Municipal Interest 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. If you received tax exempt interest from municipal bonds, include a schedule listing the payors and the amount received from each payor. You may also want to include 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. Line 14 - Partnership Income Adjustment (Positive) You may lose the exemption if you do not furnish this information. Enter the total number of dependents listed in box 10. Complete line 14 if line 3, of your Arizona Form 165 Schedule K-1, shows a difference between federal and state distributable income. Qualifying parents and grandparents 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 14. Enter the following in columns (a) through (f): a) The name of the qualifying parent or grandparent. b) The SSN of the qualifying parent or grandparent. c) The qualifying parent’s or grandparent’s relationship to you, or your spouse if filing a joint return. d) The number of months the qualifying parent or grandparent lived in your home during 2016. Temporary absences: 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 principal residence. e) Check the box if this person is age 65 or older. f) Check the box if this person died in 2016. NOTE: If the difference reported on line 3, of your Form 165 Schedule K-1, is a negative number, enter that difference on line 25. Line 15 - Total Federal Depreciation 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 24. To figure how much you should subtract, see the instructions for line 24. Line 16 - Other Additions to Income Use line 16 if any of the special circumstances below apply. Include your own schedule with your return explaining any amounts entered here. You may either add (on line 16) or subtract (on line 35) items A and B below, depending on your situation. You may lose the exemption if you do not furnish this information. Enter the total number of qualifying parents and/or grandparents listed in box 11. A. Married Persons Filing Separate Returns Totaling Your Income 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. Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2016 federal return 8 Arizona Form 140 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. 16-1, Procedure for Individuals Who Restore Substantial Amounts Held Under a Claim of Right. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: 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. 1. During a year prior to 2016 you were required to repay amounts held under a claim of right. 2. You computed your tax for that prior year under Arizona's claim of right provisions. 3. A net operating loss or capital loss was established due to the repayment made in the prior year. 4. A fiduciary uses Arizona Form 141AZ, Schedule K-1, to report to you your share of the fiduciary adjustment from the trust or estate. You are entitled to take that net operating loss or capital loss carryover into account when computing your 2016 Arizona taxable income. 5. Line 3 of Form 141AZ, Schedule K-1, shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ, Schedule K-1, is a positive number, enter that amount as an addition on line 16. 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. Enter 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. If you have to adjust your income, include a schedule showing 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 G. Addition to S Corporation Income Due to Credits Claimed NOTE: If the amount reported on line 3 of your Form 141AZ, Schedule K-1, is a negative number, enter that amount as a subtraction on line 35. 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. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return 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. You must enter an amount on this line when claiming any of the following Arizona credits: • Environmental Technology Facility Credit (Form 305) • Agricultural Water Conservation System Credit (Form 312) • Pollution Control Credit (Form 315) • Credit for Solar Hot Water Heater Plumbing Stub Outs and Electric Vehicle Recharge Outlets (Form 319) • Credit for Employment of TANF Recipients (Form 320) • Agricultural Pollution Control Equipment Credit (Form 325) Make this adjustment if you use federal averaging for lumpsum 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. 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. D. Items Previously Deducted for Arizona Purposes H. Solar Hot Water Heater Plumbing Stub Outs and Electric Vehicle Recharge Outlet Expenses 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 claim a credit on Form 319 for installing solar hot water heater plumbing stub outs or electric vehicle recharge outlets in a dwelling you constructed, you cannot deduct any expenses for which you claim the credit. E. Claim of Right Adjustment for Amounts Repaid in 2016 You must make an entry here if all of the following apply: 1. During 2016, you were required to repay amounts held under a claim of right. 2. The amount required to be repaid during 2016 was more than $3,000. 3. You took a deduction for the amount repaid on your 2016 federal income tax return. If you take this credit, enter the amount of such expenses that you deducted on your federal return. I. Wage Expense for Employers of TANF Recipients If you claim a credit on Form 320 for employing TANF recipients, you cannot deduct any wage expense for which you claim the credit. If you take this credit, enter the amount of such expenses that you deducted on your federal return. If the above apply, enter the amount deducted on your federal income tax return here. For more information on the Arizona claim of right provisions, see the department’s procedure, ITP 9 Arizona Form 140 J. Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses reacquired the debt, and you were allowed to subtract any OID related to that DOI income in the year the OID accrued. If your federal adjusted gross income includes a deduction for any accrued OID that you have already subtracted for Arizona purposes, you must make an addition to Arizona income for the amount of deferred OID deducted on your federal return. Generally, this addition will apply to taxable years 2014 through 2018. If you claim a credit on Form 338 for an investment in a qualified small business, you must adjust your basis in the investment by the amount of the credit claimed. You must report this difference in basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the investment. If you sold or otherwise disposed of the investment during the 2016 taxable year, on line 16, enter the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. On line 16, enter the amount of any previously deferred OID that you deducted in computing your 2016 federal adjusted gross income, to the extent that the amount was previously subtracted from Arizona gross income. M. Arizona Long-Term Health Care Savings Accounts (AZLTHSA) Withdrawals K. Nonqualified Withdrawals from 529 College Savings Plans You must add amounts withdrawn from your AZLTHSA if you withdrew money for purposes other than paying for qualified long-term health care expenses. You must make an addition to income if both of the following apply to you: • • N. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income 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. 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 on line 16. The amount that you must add 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. A nonqualified withdrawal is a withdrawal other than any of the following: • • • • 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. 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. O. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Non-Resident A withdrawal made as the result of the death or disability of the designated beneficiary of an account. 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. 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. 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? A rollover or change of designated beneficiary. L. Original Issue Discount (OID) on Reacquisition of Debt Instrument For federal purposes, when a taxpayer made the special election to defer discharge of indebtedness (DOI) income under IRC § 108(i) (for 2009 or 2010), the taxpayer was not allowed to take a deduction with respect to the portion of any OID that accrued with respect to that DOI income during the income deferral period. In this case, the taxpayer had to deduct the aggregate amount of the OID deductions disallowed ratably over a 5 year period, beginning with the period in which the income was includible in federal adjusted gross income. Arizona did not adopt the federal provisions requiring a taxpayer to defer the OID deduction in cases where the taxpayer federally deferred the DOI income. For Arizona purposes, you had to report the DOI income from a debt reacquisition in the year in which you 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. P. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona sources prior to Arizona Residency An individual cannot include a capital loss 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 10 Arizona Form 140 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. 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. Use the worksheet on page 29 of these instructions, Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired after December 31, 2011, to determine the allowable subtraction. Keep the worksheet for your records. Line 18 - 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 page 1 of your federal return. This amount should be reported in your federal adjusted gross income. Line 19 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on the Capital Gain or (Loss) line on page 1 of your federal return. This amount should be reported in your 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. 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? Q. Other Adjustments Other special adjustments may be necessary. You may need to make an addition for depreciation or amortization. You may also need to make an addition if you claimed certain tax credits. Call one of the numbers listed on page 1 of these instructions if any of the following apply: • You sold or disposed of non-depreciable property that was held for the production of income and your basis was computed under the Arizona Income Tax Act of 1954, as amended (1978 prior). • You claimed the Environmental Technology Facility Credit. (Form 305) • You claimed the Pollution Control Credit. (Form 315) • You claimed the Recycling Equipment Credit. (Form 307) • You claimed the Agricultural Pollution Control Equipment Credit. (Form 325) • 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. 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 shortterm capital gain distributed by the mutual fund on line 19. Line 20 - Total Net Long-Term Capital Gain or (Loss) Enter the amount from the worksheet, line 14, column (a). Line 21 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 Enter the amount from the worksheet, line 14, column (c). Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. For purposes of this line, an asset acquired by gift or inheritance is considered acquired on the date it was acquired by the gift-giver or the deceased individual. Add lines 12 through 16 and enter the total. Line 22 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Subtractions from Income Multiply the amount on line 21 by 25% and enter the result. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. Line 23 - Net Capital Gain from Investment in a Qualified Small Business You may subtract the amount of any net capital gain included in federal adjusted gross income for the taxable year derived from investment in a qualified small business as determined by the Arizona Commerce Authority (ACA) pursuant to A.R.S. § 41-1518. Line 17 - Subtotal 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. To qualify for this subtraction, your investment in the qualified small business must have been made after the ACA certified the company as a qualified small business and before the company’s certification expiration date. An investment made prior to certification or after the expiration of certification does not qualify for this subtraction. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 23, enter the amount of the allowable subtraction. Lines 18 through 22 - Net Capital Gain or (Loss) NOTE: If you enter an amount on line 18, you must complete lines 19 and 20. If you are taking a subtraction on line 22 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 21. If you do not complete lines 18 through 21, you cannot take the subtraction. 11 Arizona Form 140 Line 27 - Interest on U.S. Obligations CAUTION: If the amount entered on line 23 includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion of the net capital gain in your computation of the allowable subtraction for any net long-term capital gain of assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the instructions on page 30 for the amount to enter on line 13, column (c), of the net long-term capital gain worksheet. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. Line 24 - Recalculated Arizona Depreciation NOTE: For more information and examples of how to calculate Arizona bonus depreciation, see the department’s Income Tax Procedure, ITP 16-2, Procedure for Individuals who Claim Federal and/or Arizona Bonus Depreciation. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. For assets placed in service in taxable years beginning before December 31, 2012, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year calculated as if you had elected not to claim bonus depreciation for eligible properties for federal purposes. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. For assets placed in service during taxable years beginning from and after December 31, 2012 through December 31, 2013, the amount of the subtraction for these assets depends on the method used to compute the depreciation for these assets. Line 28 - Exclusion for U.S. Government, Arizona State or Local Government Pensions For assets placed in service in taxable years beginning from and after December 31, 2013 through December 31, 2015, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year calculated as if the bonus depreciation is 10% of the amount of federal bonus depreciation pursuant to IRC § 168(k). If you receive pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund, • the United States Foreign Service Retirement and Disability System, • retired or retainer pay of the uniformed services of the United States, • any other retirement system or plan established by federal law, For assets placed in service in taxable years beginning from and after December 31, 2015 through December 31, 2016, enter the total amount of depreciation allowable pursuant to IRC § 167(a) for the taxable year calculated as if the bonus depreciation is 55% of the amount of federal bonus depreciation pursuant to IRC § 168(k). Line 25 – Partnership Income Adjustment (Negative) Use this adjustment if line 3, of your Arizona Form 165 Schedule K-1, shows a difference between federal and state distributable income. If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a negative number, enter that difference on line 25. Do not include a minus sign or use parenthesis. NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 14. • • • • • • Line 26 - Adjustment for IRC § 179 Expense not Allowed in Prior Years If you made an addition for IRC § 179 expense on your 2012 return, enter 20% of the amount added for 2012. 12 the Arizona State Retirement System, the Arizona State Retirement Plan, the Corrections Officer Retirement Plan, the Public Safety Personnel Retirement System, the Elected Officials' Retirement Plan, a retirement plan established for employees of a county, city, or town in Arizona, and Arizona Form 140 • Military Technician (dual status) an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. You may not subtract any income you received for full-time civil service employment as a “military technician (dual status)”. Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member for a Reserve member even though the employee may be required to wear a military uniform while at work. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29 - Arizona State Lottery Winnings You may subtract up to $5,000 of winnings received in 2016 for Arizona lottery prizes. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. If you subtract Arizona lottery winnings here, you may have to adjust the amount of gambling losses claimed as an itemized deduction. See instructions for Arizona Form 140, Schedule A, Itemized Deduction Adjustments. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • social security benefits received under Title II of the Social Security Act, or • railroad retirement benefits received from the Railroad Retirement Board 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. Line 33 - Net Operating Loss Adjustment Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a net operating loss as if the loss was computed under IRC §172 in effect prior to the enactment of those special rules. If you made an election to deduct your 2008 or 2009 federal net operating loss under IRC § 172(b)(1)(H), you may have to enter an amount here. Figure how much of the net operating loss carry forward would have been allowed as a deduction on your 2016 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. On line 33, enter the amount that exceeds the actual net operating loss carry forward that was deducted in arriving at federal adjusted gross income. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax. NOTE: This subtraction applies to only those individuals who made an election under the special federal net operating loss rules for 2008 and 2009. Under the special rules for 2008 and 2009, you could have elected to carry the net operating loss back for 3, 4 or 5 years, instead of the normal 2 years. This election would have been allowed under IRC § 172(b)(1)(H) as amended by the American Recovery and Reinvestment Act of 2009 or the Worker, Homeownership, and Business Assistance Act of 2009. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Line 34 - Contributions to 529 College Savings Plans You may subtract amounts you contributed to 529 college savings plans during the taxable year. You may subtract the amount you contributed during the year up to a total of $2,000 ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000. Members of the U.S. armed forces may subtract pay received for active duty military service. On line 32, enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as
Extracted from PDF file 2016-arizona-form-140-instructions.pdf, last modified September 2016

More about the Arizona Form 140 Instructions Individual Income Tax TY 2016


eFile your Arizona tax return now

eFiling is easier, faster, and safer than filling out paper tax forms. File your Arizona and Federal tax returns online with TurboTax in minutes. FREE for simple returns, with discounts available for TaxFormFinder users!

File Now with TurboTax

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 140EZ Resident Personal Income Tax (EZ Form) Package
140-A Schedule A - Itemized Deduction Adjustments
Form 140PTC Property Tax Refund (Credit) Claim Package

Download all AZ tax forms View all 96 Arizona Income Tax Forms


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 2017.

Show Sources >

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 two 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:


2016 Form 140 Instructions

140 instructions 2015

2015 Form 140 Instructions

Microsoft Word - 140 instructions


TaxFormFinder Disclaimer:

While we do our best to keep our list of Arizona Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/arizona/form-140-instructions