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Arizona Free Printable Arizona Form 140 for 2021 Arizona Income Tax Instruction Packet

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Income Tax Instruction Packet
Arizona Form 140

2 20 Arizona Form 140 Resident Personal Income Tax Booklet Who can use Arizona Form 140? This Booklet Contains: You, and your spouse if married filing a joint return, may file Form 140 only if you are full year residents of Arizona. • Form 140 – You must use Form 140 rather than Form 140A or Form 140EZ to file for 2020 if any of the following apply to you. Resident Personal Income Tax Return • Form 140 Schedule A – • Your Arizona taxable income is $50,000 or more. Itemized Deduction Adjustments • You received active duty military pay as a member of the U.S. Armed Forces. • Form 204 – Extension Request Where’s my Refund? Check your refund status at www.AZTaxes.gov • You received pay for active service as a reservist or a National Guard member. • You are making adjustments to income. • You itemize deductions. • You claim tax credits other than the family income tax credit, the property tax credit or the credit for increased excise taxes. • You are claiming estimated payments. View your 1099-G online at AZTaxes.gov 1099-Gs will no longer be mailed; print a copy of your 1099-G online at AZTaxes.gov Before using paper, consider FILE ONLINE! Fast: Faster processing of your refund and money in your account sooner. Accurate: Fewer errors than paper forms. Online programs make it easy to ensure you don’t miss anything important. Affordable: If you qualify, it’s free. Paperless: Help the environment by reducing the paper usage.  Pay your taxes by credit card! American Express • Visa • Discover Card • MasterCard CAUTION The federal adjusted gross income that you use on your Arizona return may not be the same as the federal adjusted gross income from your federal tax return. Also, the federal Schedule A deductions used on the Arizona return may be different from the federal Schedule A deductions taken on your federal return. Each year the Arizona State Legislature considers if they will adopt changes made to the federal tax law during the prior year. These forms assume the Legislature will adopt all federal law changes made after January 1, 2020. If you use the amounts from your 2020 federal tax return to complete your Arizona return and the Legislature does not adopt the 2020 federal changes, you may have to amend your return at a later date for any difference between Arizona and federal law. For more details, visit www.azdor.gov and click on the link for 2020 conformity. Notice As a rule, the starting point for your Arizona return is your federal adjusted gross income. To take itemized deductions, you must start with the amount shown on the federal Schedule A. This is the case for 2020, except for changes Congress made to the federal tax code during 2020 if either of the following apply: 1. The changes affect how you figure your federal adjusted gross income OR 2. The changes affect how you figure your itemized deductions. When federal changes are made, the Arizona legislature must adopt those changes if the Arizona starting points are to be kept the same. The legislature will address this issue when it is in session during 2021. We must publish these forms before this issue will be addressed by the legislature. When we went to print, Arizona had not yet adopted any federal tax law changes made after January 1, 2020. What does this mean to you? It means that if any of the federal law changes made in 2020 apply to your 2020 return, you can opt to file your 2020 return using one of the following methods: 1. You can wait and file your 2020 return after this issue has been addressed. To do this, you may need to ask for a filing extension. You must pay 90% of the tax due by the due date of the return before any extension. 2. You can file your 2020 return assuming that the federal law changes will be adopted. The 2020 tax forms make this assumption. If you opt for method 2, one of the following will apply: • If Arizona adopts the federal changes, you do not have to do anything more. • If Arizona does not adopt all the changes, you may need to amend your 2020 Arizona return. Your amended return will have to show the difference between the Arizona law and the federal law. If this happens, we will post more details on our conformity webpage at https://azdor.gov/legal/conformity-irc. • Generally, no penalties or interest will be assessed on these amended returns, if you follow the Department’s instructions and pay any tax due when you file your original 2020 return and you file and pay the required amended return by the extended due date of your 2021 return. 3. You can file your 2020 return assuming that we will not adopt the federal law changes. If you opt for this method, you will have to do all of the following: • • • You will have to research all of the federal changes made after January 1, 2020. You will have to figure out if any of those changes apply to you. You will have figure out how to make adjustments for those changes on your return. If you opt for method 3, one of the following will apply: • If Arizona does not adopt the changes, you do not have to do anything more. • If Arizona adopts the changes, you may need to amend your 2020 Arizona return. Your amended return will have to show the difference between what you reported and what you should have reported. If this happens, we will post more details on our conformity webpage at https://azdor.gov/legal/conformity-irc. Individual Income Tax - Highlights 2020 Due date for calendar year filers Credit for Contributions to Private School Tuition Organizations (Form 323) Your 2020 individual income tax return is due by midnight on April 15, 2021. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2021. The allowable current year credit for contributions to private school tuition organizations was adjusted for inflation purposes. For 2020, the maximum current year credit is: • $593 for single and head of household taxpayers • $1,186 for married taxpayers filing a joint return Itemized Deductions Recent legislation amended Arizona Revised Statutes § 43-1042, relating to the allowable deduction for state income taxes paid. Credit for Contributions Made to Certified School Tuition Organizations (Form 348) Taxpayers itemizing deductions on their Arizona income tax return and claimed charitable contributions as a state tax payment on their federal 1040 Schedule A are required to make an adjustment for the amount of charitable contributions taken as a state tax payment claimed on the taxpayer’s federal itemized deductions (Form 1040 Schedule A). The allowable current year credit for contributions to a certified school tuition organization was adjusted for inflation purposes. For 2020, the maximum current year credit is: • $590 for single and head of household taxpayers • $1,179 for married taxpayers filing a joint return 2020 Arizona Standard Deduction Amounts Adjusted The 2020 Arizona standard deduction amounts are: • $12,400 for a single taxpayer or a married taxpayer filing a separate return; • $24,800 for a married couple filing a joint return; and • $18,650 for individuals filing a head of household return. Standard Deduction Increase for Charitable Contributions (New Adjustment) Taxpayers who did not itemize deductions on their federal return and who elect to take the standard deduction on the Arizona tax return and claim the allowable standard deduction increase must reduce the total amount of the 2020 qualifying charitable contributions by the amount for which the taxpayers took the allowable deduction on their federal return. 2020 Individual Income Adjusted for Inflation Tax Brackets For 2020, the Arizona individual income tax brackets on Tax Table X & Y were adjusted for inflation. The 2020 Optional Tax Table (for taxpayers with taxable income less than $50,000) was also adjusted for inflation. For specific amounts, see the Optional Tax Table and Tax Table X & Y. 1 Tax Credits Available Over 100,000 eligible Arizona families failed to receive thousands of dollars in tax credits because they did not file a tax return. You may qualify for these special credits when you file your state and federal taxes. Tax Year 2020 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children 0* 1 2 3 or more *your age 25 - 64 Earned Income (less than) $15,820 ($21,710 if MFJ) $41,756 ($47,646 if MFJ) $47,440 ($53,330 if MFJ) $50,954 ($56,844 if MFJ) Maximum Credit $538 $3,584 $5,920 $6,660 MFJ = Married Filed Jointly Tax Year 2020 Federal Child Tax Credit Eligibility Table Qualifications Maximum Credit Amount Per Qualifying Child Children under the age of 17 years at the end of the 2020 tax year $2,000 per child Parents and children must have Social Security Number or ITIN (Individual Taxpayer Identification Number) to claim credit. Do you qualify for the Arizona Family Tax Credit and/or Dependent Tax Credit? To determine if you qualify to claim the Arizona Family Tax Credit and/or the Dependent Tax Credit, see the instructions for Forms 140, 140A, 140EZ and 140PY. Nonresidents filing Form 140NR cannot claim the Arizona Family Tax Credit but you may still qualify to claim the Dependent Tax Credit. Arizona Increased Excise Tax Credit Eligibility Table Qualifications Eligibility depends on Arizona residency and filing status Income $25,000 or less per year To Qualify! You must file your state and federal taxes How To File! Get your taxes prepared FREE at one of the community tax assistance sites. The sites will also e-file your taxes; that means a FREE FAST REFUND. Where To File! For locations call ..................................... 2-1-1 within Arizona From anywhere ............................................. (877) 211-8661 TDD/TTY AZ Relay ............................. 7-1-1 or (800) 367-8939 Website: www.211arizona.org Earn it! Keep it! Save it!  Save for a House  Save for a Car  Save for a College Education Arizona Form 140 2020 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 Reports and Legal Research then click on Legal Research and select a Document Type and Category from the drop down menus. Publications To view or print the department’s publications, go to our website and click on Reports and Legal Research and then click on Publications. 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, pay by April 15, 2021, 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 page 26 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 2020 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. • • 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. 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: $12,400 $24.800 $12,400 $18,650 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 RRB-1099 and RRB1099-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. 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. For information on the Arizona tax treatment of American Indians, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Do You Have to File if You Are the Spouse of an American Indian and You Are Not an Enrolled Indian? 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. Arizona Form 140 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 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. 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. If you are not an Arizona resident, but stationed in Arizona, the following applies to you: • 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. To find out more, see the department’s publication, Pub. 704, Taxpayers in the Military. 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 2020: • 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. Nonresidents If you are a nonresident, you must file Arizona Form 140NR, Nonresident Personal Income Tax Return. What if a Taxpayer Died? If a taxpayer died before filing a return for 2020, 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. 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. If your spouse died in 2020 and you did not remarry in 2020 or if your spouse died in 2021 before filing a return for 2020, you may file a joint return. If your spouse died in 2020, the joint return should show your spouse's 2020 income before death and your income for all of 2020. If your spouse died in 2021, before filing the 2020 return, the joint return should show all of your income and all of your spouse's income for 2020. 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. If You Included Your Child's Unearned Income on Your Federal Return, Does Your Child Have to File an Arizona Return? 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. 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. Claiming a Refund for a Deceased Taxpayer Determining Residency Status 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. 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. What are the Filing Dates and Penalties? Residents When Should You File? 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. Your 2020 calendar year tax return is due no later than midnight, April 15, 2021. File your return as soon as you can after January 1, 2021, but no later than April 15, 2021. 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. 2 Arizona Form 140 What if You Cannot File on Time? Late Filing Penalty You may request an extension if you know you will not be able to file on time. 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. 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 • • Late Payment Penalty Apply for a state extension (Arizona Form 204). To apply for a state extension, file Form 204 by April 15, 2021. 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. 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. 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. 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). 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 15, 2021, even though your federal return is due on June 15, 2021. If you want to file your Arizona return after April 15, 2021, you must ask for a filing extension. You must file this request by April 15, 2021. Arizona will allow up to a 6-month extension. This will allow you to file your return by October 15, 2021. See Form 204 for extension filing details. 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 15, 2021, even though your federal return will not be due until December 15, 2021. If you file your 2020 Arizona calendar year return after October 15, 2021, your return will be late. 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. 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. 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. 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 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. What if You File or Pay Late? 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 2020 calendar year return by April 15, 2021, 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. 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. 3 Arizona Form 140 Line-by-Line Instructions 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. 2. Indicate if you agree or disagree with the federal notice. Tips for Preparing Your Return • You must complete your federal return before you can start your Arizona return. • 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 page 26 for assembly order. Make sure you include your daytime telephone number. If filing a fiscal year return, fill in the period covered. • • 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: Individual Income Audit Arizona Department of Revenue PO Box 29084 Phoenix, AZ 85038-9084 • • • Do You Need to Make Arizona Estimated Payments in 2021? Entering Your Name, Address, and SSN You must make Arizona estimated income tax payments during 2021 if: AND AND Your filing your Arizona gross your Arizona gross status is: income for 2020 was income for 2021 is greater than: greater than: Married Filing Joint $150,000 $150,000 Single $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 Married Filing Separate $ 75,000 $ 75,000 DO YOU HAVE A COMPLICATED RETURN? E-file software offers: E-file makes • easy step-by-step filing a complex instructions return simple! • error detection before For a list of approved software visit www.azdor.gov • • filing Easy form selection Maximum deductions 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 2020, you must make estimated payments during 2021 unless you are sure you will not meet the threshold for 2021. 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 2020 Form 140. 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. 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. 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. 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. 4 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. Use your current home address. The department will mail your refund to, or correspond with, you at that address. For a deceased taxpayer, see page 2 of these instructions. Arizona Form 140 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. 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. 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 that period. 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. Box 4a - Injured Spouse Protection of Joint Overpayment Last Names Used in Last 4 Prior Years Identification Numbers for Paid Preparers NOTE: You cannot use Form 203 to request protection from offset for past-due federal taxes. You must contact the IRS. 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. A paid preparer who fails to include the proper identification number may also be subject to a penalty. 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. Box 5 - Head of Household 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. Determining Your Filing Status The filing status that you use on your Arizona return may be different from that used 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 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 were married as of December 31, 2020, 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 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. 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 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, Box 4 - Married Filing Joint Return 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, 2020. 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. You may file a joint return if your spouse died during 2020 and you did not remarry in 2020. 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. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. 5 Arizona Form 140 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. 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. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2020, you must get a statement certified by your eye doctor or registered optometrist that: • 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 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. • 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 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. 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. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2020. 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, 2020, and you did not remarry in 2020, 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. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. Box 11a - Qualifying Parents and Grandparents 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, 2021 (born 1/1/1956), that person is considered to be age 65 at the end of 2020 for federal income tax purposes and likewise for Arizona income tax purposes. • • • 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. 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. 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 2020. If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2020 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 2020 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 2020 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 6 Arizona Form 140 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. 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. 3. You paid more than one-half of the support and 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 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. The parent or grandparent required assistance with activities of daily living. 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, food-preparation, and transportation. 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. Dependents - Boxes 10a and 10b Repeal of Arizona’s dependent deduction for taxable years beginning from and after December 31, 2018. Arizona’s 2019 legislation amended A.R.S. § 43-1023 repealing the deduction for a taxpayer’s dependent for taxable years beginning from and after December 31, 2018. Enactment of Arizona’s Dependent Tax Credit for taxable years beginning from and after December 31, 2018. This legislation also enacted A.R.S. § 1073.01 establishing a Dependent Tax Credit for taxpayers claiming the following individuals: • dependents under the age of 17; and • dependents age 17 and older. The Dependent Tax Credit is claimed on page 2, line 49. Boxes 10a and 10b 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. 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. 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. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; 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. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2020. 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. 7 Arizona Form 140 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 26. To figure how much you should subtract, see the instructions for line 26. Line 16 - Net Capital (Loss) from Exchange of one kind of legal tender for another kind of legal tender To determine if you are required to make this addition to income, you must net all gains and (losses) from all exchanges of 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. 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. 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? 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. 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 2020 federal return 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. 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 on line 25. For the purposes of this paragraph: (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. Line 17 - Other Additions to Income Use line 17 if any of the following special circumstances apply. 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 2021?" 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, 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. Line 14 - Partnership Income Adjustment Complete line 14 if you received an Arizona Form 165 Schedule K-1, and line 3 shows a difference between federal and state distributable 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 14. NOTE: If you are reporting any adjustment on line 17 or line 36, complete page 5 of your tax return, Adjustments to Arizona Gross Income, and include it with your return. If are not reporting any adjustment on line 17 or line 36, do not include page 5 with your return. You may either add (on line 17) or subtract (on line 36) items A and B, depending on your situation. 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. 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 you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see NOTE: If the difference reported on line 3, of your Form 165 Schedule K-1, is a negative number, enter that difference on line 27. 8 Arizona Form 140 the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. You are entitled to take that net operating loss or capital loss carryover into account when computing your 2020 Arizona taxable income. • 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. 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. • B. Fiduciary Adjustment 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 reported on line 3 of your Form 141AZ Schedule K-1, is a positive number, include that amount on line 17. G. Addition to S Corporation Income Due to Claiming Passthrough Credits 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. 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 include an amount on this line when claiming any of the following Arizona credits: • Agricultural Water Conservation System Credit (Form 312) • Pollution Control Credit (Form 315) • Credit for Employment of TANF Recipients (Form 320) 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. 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 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. H. 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 claim this credit, include the amount of such expenses that you deducted on your federal return. I. Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses 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 2020 taxable year, include 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. E. Claim of Right Adjustment for Amounts Repaid in 2020 You must make an entry here if all of the following apply: • During 2020, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2020 was more than $3,000. • You took a deduction for the amount repaid on your 2020 federal income tax return. 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. F. 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 2020 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. J. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • 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. 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. 9 Arizona Form 140 A nonqualified withdrawal is a withdrawal other than any of the following: • 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. K. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in 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. 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. 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? N. Americans with Disabilities Act - Access Expenditures If a subtraction is taken on line 36, Other Subtractions from Income (Item O), 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. O. 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. P. Other Adjustments related to tax credits 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 claimed the Pollution Control Credit. (Form 315) • You claimed the Agricultural Pollution Control Equipment Credit. (Form 325) Q. Other Adjustments 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. R. Total Other Additions to Arizona Gross Income Add all amounts from page 5, Part A, and enter the total on line 17. Line 18 - Subtotal Add lines 12 through 17 and enter the total. 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. L. 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. 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: 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. Subtractions from Income You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. 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. M. 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 taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona 10 Arizona Form 140 Lines 19 through 23 - Net Capital Gain or (Loss) 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”. Line 23 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 22 by 25% and enter the result. NOTE: If you enter an amount on line 19, you must complete lines 20 and 21. If you are taking a subtraction on line 23 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 22. If you do not complete lines 19 through 22, you cannot take the subtraction on line 23. 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. CAUTION: If you take a subtraction on line 24 or line 25 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 for any net longterm capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income (line 23). For more information, see the worksheet on page 28. Line 24 - Net Capital Gain from Investment in an Arizona Qualified Small Business To take the subtraction for a net capital gain from investment in an Arizona qualified small business, you must net all gains and (losses) from investments in Arizona qualified small businesses including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. 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. 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 24, enter the amount of the allowable subtraction. Line 25 – Net Capital Gain from Exchange of one kind of legal tender for another kind of legal tender To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 19-21. Line 19 - 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 20 - 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 20. Line 21 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 21. Line 22 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. NOTE: If the amount from all sources results in a net capital (loss) from the exchange of one kind of tender for another kind of tender, enter that amount on line 16. For the purposes of this subtraction: (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 met
Extracted from PDF file 2020-arizona-form-140-instructions.pdf, last modified October 2020

More about the Arizona Form 140 Instructions Individual Income Tax TY 2020

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

We last updated the Income Tax Instruction Packet in January 2021, so this is the latest version of Form 140 Instructions, fully updated for tax year 2020. 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.


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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 140A Resident Personal Income Tax (Short) Package
Form 140 Instructions Income Tax Instruction Packet
Form 140PTC Property Tax Refund (Credit) Claim Package
Form 204 Application for Filing Extension

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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 2021.

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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 six 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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