140Nr Form PDF Details

In addressing the complexities of filing state income taxes for nonresidents with Arizona-sourced income, the Arizona Form 140NR emerges as a pivotal document in ensuring compliance with state tax laws. Tailored specifically for individuals who were not residents of Arizona but earned income from Arizona sources in the tax year 2020, this form represents a conduit for fulfilling tax obligations while potentially navigating the differences in federal and state tax regulations. The form itself is part of a comprehensive booklet that not only provides the Form 140NR for nonresident personal income tax return but also includes Schedule A(NR) for itemized deductions and Form 204 for those seeking an extension. Critical to the process is the recognition of possible discrepancies between federal adjusted gross income and the figures acceptable under Arizona law, a factor that underscores the importance of legislative adaptations to federal tax law changes. With options available for filing, including the encouragement towards electronic submissions for their convenience and efficiency, taxpayers are encouraged to ponder the method most aligning with their circumstances, especially considering Arizona's unique stance on adopting federal tax reformations. This booklet also touches upon significant tax credits, deduction adjustments, and income thresholds vital for determining filing requirements, aiming to equip nonresidents with the necessary tools for accurate tax reporting and to seize any eligible refunds efficiently.

QuestionAnswer
Form Name140Nr Form
Form Length6 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min 30 sec
Other namesarizona form 140nr 2020, you arizona 140nr form, arizona 140nr form, az form 140nr instructions 2020

Form Preview Example

220

Arizona Form

140NR

Nonresident Personal Income Tax Booklet

This Booklet Contains:

Form 140NR –

Nonresident Personal Income Tax

Return

Schedule A(NR) –

Itemized Deduction

Form 204 –

Extension Request

WHO MUST USE

ARIZONA FORM 140NR?

File a Form 140NR if you were not an Arizona resident but earned income from an Arizona source in 2020.

Where’s my Refund?

Check your refund status at

www.AZTaxes.gov

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

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.

Itemized Deductions

Recent legislation amended Arizona Revised Statutes

§43-1042, relating to the allowable deduction for state income taxes paid.

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).

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 Tax Brackets Adjusted for Inflation

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.

Credit for Contributions to Private School Tuition Organizations (Form 323)

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

Credit for Contributions Made to Certified School Tuition Organizations (Form 348)

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

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 w hen you file your state and federal taxes.

Tax Year 2020 Federal Earned Income Tax Credit Eligibility Table

Number of

Earned Income

Maximum Credit

Qualifying Children

(less than)

 

0*

$15,820 ($21,710 if MFJ)

$538

 

 

 

1

$41,756 ($47,646 if MFJ)

$3,584

 

 

 

2

$47,440 ($53,330 if MFJ)

$5,920

 

 

 

3 or more

$50,954 ($56,844 if MFJ)

$6,660

*your age 25 - 64

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

Income

 

 

Eligibility depends on Arizona residency and filing status

$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

2020 Nonresident Personal Income Tax Return

140NR

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 and category type 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 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.

NOTE: FOR ALL COMPOSITE NONRESIDENT

PERSONAL INCOME TAX RETURNS

If this return is filed as a Nonresident Composite Personal

Income Tax Return check box 13 on page 1 of the return and see the instructions, beginning on page 26, for completing a composite

return.

A composite nonresident return cannot be e-filed. Partnerships

and S corporations filing a composite return on behalf of its

nonresident partners or nonresident shareholders must mail Form 140NR to the department.

AVOID PROCESSING DELAYS: Are you mailing

your Arizona income tax return? If you are mailing your return to the department, see page 23 for assembly order (for sequence) information.

Are You Subject to Tax in Arizona?

If you are in this state for a temporary or transitory purpose or did not live in Arizona but received income from sources within Arizona during 2020, you are subject to Arizona tax. You are subject to Arizona income tax on all income derived from Arizona sources. Income from Arizona sources includes the following:

wages;

rental income;

business income;

the sale of Arizona real estate;

interest and dividends having a taxable or business situs, in this state; and

any other income from an Arizona source.

Do You Have to File?

Arizona Filing Requirements

These rules apply to all Arizona taxpayers.

 

 

and your gross income is

You must file if you are:

more than:

Single

$12,400

Married filing joint

$24,800

Married filing separate

$12,400

Head of household

$18,650

If you are a nonresident, you must report income derived from Arizona sources. To determine if you meet the gross income threshold amount above, multiply the amount by the percentage of your Arizona gross income that is of your federal adjusted gross income (income ratio shown on line 27 of Form 140NR).

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 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.

Income earned by a qualifying out-of-state employee, from performing qualified disaster recovery work during a disaster period, is exempt from Arizona income tax. For more information, see the instructions for line 15.

NOTE: Even if you do not have to file, you must still file a return to get a refund of any Arizona income tax withheld.

Arizona Form 140NR

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.

Do You Have to File if You Are in the Military?

NOTE: 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. For more information, see the instructions under Residency Status.

You must file if you meet the Arizona filing requirements unless all 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 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 Included Your Child's Unearned Income on Your Federal Return, Does Your Child Have To File An Arizona Return?

No. In this case, the child should not file an Arizona return. The parent must include that same income in his or her Arizona taxable income.

Determining Residency Status

If you are not sure if you are an Arizona resident for state income tax purposes, we may be able to help. For more 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 resident earns the income.

If you are a full year resident, you must file Arizona Form 140, Form 140A, or Form 140EZ.

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 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.

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.

2

Arizona Form 140NR

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?

When Should You File?

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.

What if You Cannot File on Time?

You may request an extension if you know you will not be able to file on time.

NOTE: An extension does not extend the time to pay your income tax. See the instructions for Arizona Form 204.

To get a filing extension, you can either

Apply for a state extension (Arizona Form 204). To apply for a state extension, file Form 204 by April 15, 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.

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.

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.

Late Filing Penalty

If you file late, we will charge you a late filing penalty. This penalty is 4½% (.045) of the tax required to be shown on the return for each month or fraction of a month the return is late. This penalty cannot exceed 25% (.25) of the tax found to be remaining due.

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.

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: 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 140NR. 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.

3

Arizona Form 140NR

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.

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.

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.

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?

You must make Arizona estimated income tax payments during 2021 if:

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.

Line-by-Line Instructions

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 23 for assembly order.

Make sure you include your daytime telephone number.

If filing a fiscal year return, fill in the period covered.

Entering Your Name, Address, and SSN

DO YOU HAVE A COMPLICATED RETURN?

 

 

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

 

 

 

 

E-file makes

filing a complex return simple!

For a list of

approved

software visit

www.azdor.gov

E-file software offers:

easy step-by-step instructions

error detection before filing

Easy form selection

Maximum deductions

Separate

$ 75,000

$ 75,000

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 nonresident, your Arizona gross income is that part of your federal adjusted gross income derived from Arizona sources. Your Arizona gross income is on line 26 of the 2020 Form 140NR.

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.

Lines 1, 2, and 3 -

NOTE: Make sure that you enter your SSN on the appropriate

line and your SSN is correct. If you are filing a joint return,

also make sure that you enter your SSNs in the same order every year.

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. Then enter your spouse’s name and SSN on the second line 1.

4

Arizona Form 140NR

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.

NOTE: If a partnership or S corporation files a composite

return on behalf of its nonresident partners or shareholders, the

entity filing the return should enter its EIN in place of the SSN.

For example if the entity’s EIN is 98-7654321, the entity would enter its EIN as 987-65-4321.

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.

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.

Last Names Used in Last 4 Prior Years

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.

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.

A paid preparer who fails to include the proper identification number may be subject to a penalty.

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 140NR.

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 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.

If you are married to an Arizona full year resident, you may file a joint return with your Arizona resident spouse. If filing a joint return with your Arizona resident spouse, you must use Form 140NR.

NOTE: For help on filing a joint return with your full-year resident 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.

Box 4a - Injured Spouse Protection of Joint Overpayment

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.

NOTE: You cannot use Form 203 to request protection from offset for past-due federal taxes. You must contact the IRS.

You must complete Arizona Form 203, Request for Injured Spouse Protection from Application of Joint Overpayment Against Spouse’s Delinquencies and Debts, and include that form with your tax return, when filed. Place the completed form on top of your income tax return. 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.

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.

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. If one spouse is a resident and the other spouse is not, special rules apply when filing a separate return.

For more information on how to report income in this case, 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 the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers.

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona Form 140NR

 

 

 

NOTE: In some cases, you may treat community income as

Your field of vision is 20 degrees or less.

separate income. For more information on when you may treat

If your eye condition is not likely to improve beyond the

community income as separate income, see the department’s

conditions listed above, you can get a statement certified by

ruling, 93-22, When Community Income May Be Treated as

your eye doctor or registered optometrist to that effect

Separate Income.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

instead. You must keep the statement for your records.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Box 7 - Single Return

 

 

 

 

 

 

 

 

If you are single or filing as head of household, enter "1"

If you are filing as single, check box 7.

 

 

 

 

 

in box 9 if you are totally or partially blind.

Use this filing status if you were single on December 31, 2020.

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"

You are single if any of the following apply to you:

 

 

 

 

in box 9 if both you and your spouse are totally or partially

You have never been married.

 

 

 

 

 

 

 

 

 

 

 

 

blind.

You are legally separated under a decree of divorce or of

If you are married and filing a separate return, you may

 

separate maintenance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

take an exemption for yourself if you are totally or partially

You were widowed before January 1, 2020, and you did

 

not remarry in 2020, and you do not qualify to file as a

blind. You may only claim an exemption for your spouse

 

if (1) your spouse is totally or partially blind, (2) has no

 

qualifying widow or widower with dependent children on

 

Arizona adjusted gross income for calendar year, and (3) is

 

your federal return.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

not the dependent of another taxpayer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE: If

you got

divorced

during

the

year,

see

the

Enter "1" in box 9 if you are totally or partially blind or

department’s

 

ruling,

ITR

14-2,

Reporting

Income,

 

your spouse is totally or partially blind and your spouse

 

Deductions,

Exemptions, and

Withholding

for Divorced

 

meets the above criteria.

Individuals for the Year of

Divorce; and

publication,

 

Pub. 200, Income Tax Issues Affecting Married and

Enter “2” in box 9 if you are totally or partially blind and

Divorced Taxpayers.

 

 

 

 

 

 

 

 

 

 

your spouse is totally or partially blind and your spouse

Exemptions - Boxes 8 and 9

 

 

 

 

 

meets the above criteria.

 

 

 

 

 

 

Enter the number of exemptions you are claiming in boxes 8

Dependents - Boxes 10a and 10b

 

and 9. Do not put a check mark. You may lose the exemption

Repeal of Arizona’s dependent deduction for taxable years

if you put a checkmark in these boxes.

 

 

 

 

 

 

 

 

 

 

beginning from and after December 31, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Box 8 - Age 65 or Over

 

 

 

 

 

 

 

 

Arizona’s 2019 legislation amended A.R.S. § 43-1023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE: If a taxpayer’s 65th

birthday was January 1, 2021

repealing the deduction for a taxpayer’s dependent for taxable

(born 1/1/56), that person is considered to be age 65 at the end

years beginning from and after December 31, 2018.

 

of 2020 for federal income tax purposes and likewise for

Enactment of Arizona’s Dependent Tax Credit for taxable

Arizona income tax purposes.

 

 

 

 

 

 

 

 

years beginning from and after December 31, 2018.

If you are single or filing as head of household, enter "1"

This legislation also enacted A.R.S. § 1073.01 establishing a

 

in box 8 if you were 65 or older in 2020 and not claimed as

Dependent Tax Credit for taxpayers claiming the following

 

a dependent by another taxpayer.

 

 

 

 

 

individuals:

If you are married filing a joint return, enter "1" in box 8 if

dependents under the age of 17; and

 

you were 65 or older and not claimed as a dependent by

dependents age 17 and older.

 

another taxpayer or your spouse was 65 or older in

The Dependent Tax Credit is claimed on page 2, line 59.

2020

and

not

claimed

as

a

dependent

by

another

Boxes 10a and 10b

 

taxpayer. Enter "2" in box 8 if both you and your spouse

 

 

 

were 65 or older in 2020 and neither of you are claimed

Boxes 10a and 10b identify the number of your qualifying

 

as a dependent by another taxpayer.

 

 

 

 

 

dependents that are either under the age of 17 (box 10a) or age

If you are married and filing a separate return, enter "1"

17 and over (box 10b). This information is used to compute the

 

in box 8 if you were 65 or older and not claimed by another

allowable Dependent Tax Credit.

 

taxpayer. You cannot take an exemption for your spouse.

Lines 10c through 10f

 

Your spouse, if 65 or older and not claimed by another

 

You must complete the dependent information section (lines

 

taxpayer,

may

 

take

this

exemption

 

on

his/her

 

 

 

10c through 10f on page 1 (and Part 1 on page 4, if more space

 

own separate return.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

is needed) for each person counted in either box 10a or 10b. Be

Box 9 - Blind

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

sure to check the box on page 1 indicating you are

If you

or

your

spouse

were

partially

blind

as

of

completing page 4.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020, you must get a statement certified by

You may claim only those individuals that qualify as your

your eye doctor or registered optometrist that:

dependent for federal purposes. For each qualifying individual,

You cannot see better than 20/200 in your better eye with

enter the following information:

 

glasses or contact lenses.

 

 

6

Arizona Form 140NR

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.

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.

Reporting Your Residency Status

Check the appropriate box (11 through 13). Check only one box.

Box 11 - Nonresident

Check box 11, if you were not an Arizona resident during 2020, and were not on active military duty in Arizona.

Box 12 - Nonresident Active Military

Check box 12, if you were a nonresident on active duty military assignment in Arizona during 2020.

Box 13 - Composite Return

Check box 13, if this is a composite return filed by a Partnership on behalf of its nonresident partners or an S corporation on behalf of its nonresident shareholders.

For a list of qualifications and additional information on filing an Arizona composite nonresident income tax return, see the department’s ruling, ITR 16-2, Composite Individual Income Tax Returns.

IMPORTANT – SPECIAL INSTRUCTIONS FOR

COMPOSITE RETURNS: Go to page 26 to complete a composite nonresident personal income tax return.

Determining Arizona Income

Line 14 - Spouse of Active Duty Military Member Check the box on line 14 if married and you are the spouse of an active duty military member and you qualify for relief under the Military Spouses Residency Relief Act. For information about who qualifies for relief, see the department’s publication, Pub. 705, Spouses of Active Duty Military Members.

Use lines 15 through 27 to determine what portion of your total income is taxable by Arizona.

NOTE: If you are unable to determine the proper line to use, please call one of the numbers listed on page 1.

FEDERAL Column

Enter the actual amounts shown on your 2020 federal income tax return in the FEDERAL column. Complete lines 15 through

25.Line 25 should equal the federal adjusted gross income shown on your 2020 federal Form 1040 or Form 1040NR.

ARIZONA Column

Enter that portion of your federal income received from Arizona sources in the ARIZONA column. Such income includes wages earned in Arizona, Arizona rental and business income, and gains on the sale of Arizona property.

NOTE: If you are filing a joint return with your full year

resident spouse, you must enter your Arizona source income in

the ARIZONA column and your spouse must enter all income

from all sources in the ARIZONA column. For details, 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

The Tax Reform Act of 1986 limits the amount of losses that you may deduct from passive activities. A passive activity is one that involves the conduct of any trade or business in which the taxpayer does not materially participate.

As a nonresident, your Arizona gross income may include some of these losses. You may consider only those passive losses that arose from Arizona sources. Your 2020 Arizona gross income can include only Arizona source losses you used on your 2020 federal return.

Lines 15 through 24 – Arizona column

The following line-by-line instructions apply to the ARIZONA column.

Line 15 - Wages, Salaries, Tips, etc.

Enter all amounts received for services performed in Arizona.

Income earned by a qualifying out-of-state employee, from performing qualified disaster recovery work during a disaster period, is exempt from Arizona income tax. Exclude this income from line 15 in the Arizona column.

For the purpose of this exemption, a qualifying out-of-state employee is an Arizona nonresident individual who is temporarily in Arizona to solely perform qualified disaster recovery work during a disaster period. For more information, see the department’s publication, Pub. 720.

7

Arizona Form 140NR

NOTE: Active Duty Military Members - Do not include

active duty military pay unless the active duty military member

is an Arizona resident filing a joint return with his or her

Arizona nonresident spouse on Form 140NR. If you are an

Arizona resident active duty military member including military

pay on line 15 in the “ARIZONA” column, also include that

amount in the amount entered as an “Other Subtraction From Income” on page 2, line 45.

NOTE: Spouses of Active Duty Military Members If you are

the spouse of an active duty military and you qualify for relief

under the Military Spouses Residency Relief Act, do not enter

any wages, salaries or tips you earned during the taxable year for services performed in Arizona.

Line 16 - Interest

If you have an Arizona business, enter only interest (including U.S. Government interest) you earned on accounts pledged as collateral. Also, enter your distributive share of interest from a partnership doing business in Arizona or an S corporation doing business in Arizona. Do not include any other interest income, even if it was earned in Arizona banks.

Line 17 - Dividends

If you have an Arizona business, enter only those dividends earned on stocks pledged as collateral, including dividends from small business corporations. Also, enter your distributive share of dividend income from a partnership doing business in Arizona or an S corporation doing business in Arizona. Do not include any other dividend income.

Line 18 - Arizona Income Tax Refunds

Enter the amount of Arizona income tax refunds received in 2020 that you included in your federal adjusted gross income.

Line 19 - Business Income or (Loss)

Enter income or (loss) from Arizona businesses.

Income earned by a nonresident, who is a sole owner of a qualifying out-of-state business, from performing qualified disaster recovery work during a disaster period, is exempt from Arizona income tax. Exclude this income from line 19 in the Arizona column.

For the purpose of this exemption, a qualifying out-of-state business is a business that is temporarily in Arizona to solely perform qualified disaster recovery work during a disaster period. For more information, see the department’s publication, Pub. 720, Disaster Recovery Tax Relief.

Line 20 - Gains or (Losses)

Enter gains or (losses) on sales of Arizona sourced property. Enter the total Arizona sourced net capital gain or (loss) used to determine the amount 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.

NOTE: If you reported the maximum allowable net capital

(loss) for the current taxable year on your federal return, enter

the total amount of Arizona sourced loss used to compute the net capital loss claimed on your federal return.

For example: A single taxpayer has a $3,000 capital gain from property in State XYZ and a ($7,000) capital (loss) from property in Arizona resulting in a ($4,000) net federal capital loss. [$3,000 gain – ($7,000 loss) = ($4,000 net loss)]

Because taxpayer is limited to claiming a loss in the amount of ($3,000) on the federal tax return, the taxpayer must carryforward the remaining amount of the loss ($1,000), for federal purposes. [($4,000 actual loss) – $3,000 limit = ($1,000 loss carryforward)]

For the current tax year: the Arizona nonresident taxpayer would enter the loss actually used, ($6,000), on line 20 of the Arizona column. [($7,000) – ($1,000 carryforward) = ($6,000)].

In the year the carryforward amount is used for federal purposes, assuming taxpayer has no other gains or (losses), the taxpayer would enter the remaining Arizona sourced capital loss ($1,000) on line 20, of the Arizona column.

Line 21 - Rents, etc.

Enter the following income on line 21.

Rent or royalty income earned on Arizona properties.

Income from Form 141AZ Schedule K-1(NR), line 2, from estates or trusts.

Income or (loss) from Schedule(s) K-1(NR) from Arizona partnerships (Arizona Form 165), or small business corporations (Arizona Form 120S).

Line 22 - Other Income Reported on Your Federal Return

Enter other income from sources within Arizona. Do not include pension income or social security taxed by the federal government. Include your own schedule with the tax return.

Line 23 - Total Income

Add lines 15 through 22 and enter the total.

Line 24 - Other Federal Adjustments

Include, on line 24, any other federal adjustments included in your federal adjusted gross income that are attributable to the Arizona source income reported on your 2020 Arizona nonresident return.

Line 25 - Federal Adjusted Gross Income

Subtract line 24 from line 23 in the FEDERAL column.

Line 26 - Arizona Gross Income

Subtract line 24 from line 23 in the ARIZONA column.

Line 27 - Arizona Income Ratio

Divide line 26 by line 25 and enter the result on line 27. You must round your answer to three decimal places. Do not enter more than 1.000. Do not include the percent sign (%) with the amount entered on line 27.

This is your Arizona income ratio of your total income.

8

Arizona Form 140NR

 

 

Examples:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

Federal

 

Arizona income ratio

Gross Income

Adjusted Gross

 

 

 

 

 

 

 

 

 

from line 26

Income from

 

 

 

 

 

 

 

 

 

 

line 25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,516/32,000 = .547375

 

$ 17,516

$

32,000

enter on line 27:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

5

 

4

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,650/.92,100 = .278501

 

$ 25,650

$

92,100

enter on line 27:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

2

 

7

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,000/9,000 = 1.1111

 

 

$ 10,000

$

9,000

enter on line 27:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

.

0

 

0

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

If Arizona gross income and federal adjusted gross income are both positive and Arizona’s gross income is greater than the federal adjusted gross income, enter 1.000 on line 27.

If Arizona gross income is positive (greater than zero), and federal adjusted gross income is equal to or less than zero (negative), enter 1.000 on line 27.

If Arizona gross income is equal to or less than zero (negative), and federal adjusted gross income is more than zero, enter 0.000 on line 27.

If Arizona gross income and federal adjusted gross income are both zero, enter 1.000 on line 27.

If Arizona gross income is zero, and federal adjusted gross income is negative, enter 0.000 on line 27.

If Arizona gross income and federal adjusted gross income are both negative, divide the Arizona amount by the federal amount and enter the result on line 27. The result cannot be more than 1.000.

Additions to Income

Line 28 - Total Depreciation Included in Arizona Gross Income

Enter the amount of depreciation deducted on the federal return that is included in Arizona gross income. If you make an entry here, you should also take a subtraction on line 40 for allowable depreciation attributable to assets used in your Arizona business. See the instructions for line 40.

Line 29 - Partnership Income Adjustment (Positive)

Depending on your situation, you may either add (line 29) or subtract (line 41) this amount.

Use this adjustment if line 17, column (c) of your Arizona Form 165 Schedule K-1(NR), shows a difference between federal and state distributable income.

If the difference reported on line 17, column (c) of your Arizona Form 165 Schedule K-1(NR) is a positive number, enter that

portion of the difference that is allocable to partnership income taxable by Arizona as an addition on line 29.

NOTE: If the difference reported on line 17, column (c) of your

Arizona Form 165 Schedule K-1(NR), is a negative number,

enter that portion of the difference that is allocable to

partnership income taxable by Arizona as a subtraction on line 41.

Line 30 - Net Capital (Loss) from the 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 one kind of legal tender for another kind of legal tender including amounts shown on Form 165 Schedule K-1(NR), Form 120S Schedule K-1(NR), and Form 141AZ, Schedule K- 1(NR).

For taxable years beginning from and after December 31, 2017, enter the amount of any net capital loss from Arizona sources and 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 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 39.

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 31 - Other Additions to Income

Use line 31 if any of the special circumstances below apply.

NOTE: If you are reporting any adjustment on line 31 or line

45, 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 31 or line 45, do not include page 5 with your return.

A. Fiduciary Adjustment - Form 141AZ Schedule K-1(NR)

A fiduciary uses Form 141AZ Schedule K-1(NR), to report to you your share of the fiduciary adjustment from the trust or estate. Line 5 of Form 141AZ Schedule K-1(NR), shows your share of the fiduciary adjustment from the estate or trust.

Depending on your situation, you may either add (line 31) or subtract (line 45) this amount.

If the amount reported on line 5 of your Arizona Form 141AZ, Schedule K-1(NR), is a positive number, include that amount as an addition on line 31.

NOTE: If the amount reported on line 5 of your Arizona Form

141AZ Schedule K-1(NR), is a negative number, include that amount as a “Subtraction from Income” on line 45.

9

Arizona Form 140NR

B. 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 back such amounts to your Arizona gross income.

C. Claim of Right Adjustment for Amounts Repaid in 2020

You must make an entry here if all of the following apply:

1.During 2020, you were required to repay amounts held under a claim of right.

2.The amount required to be repaid was subject to Arizona income tax in the year included in income.

3.The amount required to be repaid during 2020 was more than $3,000.

4.You took a deduction for the amount repaid on your 2020 federal income tax return.

5.The deduction taken on your federal income tax return is reflected in your Arizona taxable income.

If the above apply, include the amount deducted on your federal income tax return which is reflected in your Arizona taxable income. For more information see the department’s procedure, ITP 16-1, Procedure for Individuals Who Restore Substantial Amounts Held Under a Claim of Right.

D.Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years

You must make an entry here if all of the following apply:

1.During a year prior to 2020, you were required to repay income 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.You are entitled to take that net operating loss or capital loss carryover into account when computing your 2020 Arizona taxable income.

5.The amount of the loss carryover included in your Arizona gross 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 Arizona gross income is more than the amount allowed for the taxable year under Arizona law.

E. Addition to S Corporation Income Due to Credits Claimed

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. Shareholders must include an amount on this line when claiming any of the following credits:

Agricultural Water Conservation System Credit (Form 312)

Pollution Control Credit (Form 315)

Credit for employment of TANF Recipients (Form 320)

F. Wage Expense for Employers of TANF Recipients

If you claim a credit for employing TANF recipients (Form 320), 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.

G.Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses

If you claim a credit for an investment in a qualified small business on Form 338, 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 Internal Revenue Code (IRC) with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02.

H.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 on line 31.

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.

I. Americans with Disabilities Act Access Expenditures

If a subtraction is taken on line 45, Other Subtractions from Income, for the full amount of eligible access expenditures paid or incurred during the taxable year for Arizona properties to comply with the requirements of the Americans with disabilities act of 1990 or title 41, chapter 9, article 8, any amount of eligible access expenditures that is recognized under the internal revenue code, including any amount that is amortized according to federal amortization schedules, and that is included in computing taxable income for the current taxable year must be added to Arizona gross income.

(A.R.S. § 43-1021)

J. Amortization or Depreciation for Childcare Facility

You elected to amortize cost of a childcare facility under Arizona law in effect before 1990, and you are still deducting amortization or depreciation for that facility on your federal income tax return.

K. Other Adjustments related to Tax Credits

Call one of the numbers listed on page 1 of these instructions if you claimed the Pollution Control Credit. (Form 315)

10

Arizona Form 140NR

L. 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.

M. Total Other Additions to Arizona Gross Income.

Add all amounts from page 5, Part A, and enter the total and enter the total on line 31.

Line 32 - Subtotal

Add lines 26, 28, 29, 30 and 31 and enter the total on line 32.

Subtractions from Income

You may only subtract those items for which statutory authority exists. Without such authority, you cannot take a subtraction. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions.

NOTE: You may not subtract any amount which is allocable to income excluded from your Arizona income.

Lines 33 through 38 - Net Capital Gain or (loss)

NOTE: If you reported a net capital gain or (loss) on your

federal tax return, from federal Schedule D, you must enter the

amount of the net gain or (loss) from Arizona sources on

line 33. See the instructions for line 33.

If you enter an amount on line 37, you must also complete lines

35 and 36. If you do not complete these lines, you cannot take

the subtraction on line 37.

If you do not have any net capital gain or (loss) to report, enter “0” on lines 33-35

As a nonresident, you may take the allowable subtraction for only those qualified net long-term capital gains that are from Arizona sources. You may subtract 25% (.25) of any qualifying 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, 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.

Line 33 - Total Arizona Sourced Net Capital Gain or (Loss)

Enter the amount shown on line 20, of the Arizona column.

Line 34 - Total Arizona Sourced Net Short-Term Capital Gain or (Loss)

Enter the total Arizona sourced net short-term capital gain reported on line 33.

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 34.

Line 35 - Total Arizona Sourced Net Long-Term Capital Gain or (Loss)

Enter the amount of total Arizona sourced long-term net capital gain or (loss) included in line 33.

NOTE: If your long-term net capital gain or (loss) was limited

to an amount shown on federal Form 1099-DIV, and you were

not required to complete Schedule D, enter the amount shown on your Form 1099-DIV, from Arizona sources, on line 35.

Line 36 – Arizona Sourced Net Long-Term Capital Gain from Assets Acquired After December 31, 2011

Enter the Arizona sourced net long-term capital gain from assets acquired after December 31, 2011.

If you did not complete the worksheet at the end of these instructions and you have no net long-term capital gains from assets acquired after December 31, 2011, enter “0”.

If you completed the worksheet, enter the amount from the worksheet, line 7.

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.

Line 37 – Arizona Sourced Net Long-Term Capital Gain Subtraction from Income for Assets Acquired After December 31, 2011

Multiply the amount on line 36 by 25% (.25) and enter the result.

CAUTION: If you take a subtraction on line 38 or line 39 that

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 from assets

acquired after December 31, 2011, and included in federal adjusted gross income (line 25).

Line 38 - Net Capital Gain from Investment in a 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.

11

Arizona Form 140NR

See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates.

On line 38, enter the amount of the allowable subtraction.

Line 39 – Capital Gain from the 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 one kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1(NR), 120S Schedule K-1(NR) , and/or 141AZ, Schedule K-1(NR).

Enter the amount of any net capital gain from Arizona sources 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 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 30.

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 40 - Recalculated Arizona Depreciation

As a nonresident, you may take the allowable subtraction that is only related to income sourced to Arizona.

NOTE: For more information and examples of how to calculate Arizona bonus depreciation, see the department’s

procedure, ITP 16-2, Procedure for Individuals who Claim Federal and/or Arizona Bonus Depreciation.

For assets placed in service in taxable years beginning before December 31, 2012, enter the total amount of depreciation attributable to assets used in your Arizona business 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.

For assets placed in service during taxable years beginning from

and after December 31, 2012 through December 31, 2013, the amount of the subtraction depends on the method used to compute the depreciation for these assets.

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 attributable to assets used in your Arizona business 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).

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 attributable to assets used in your Arizona business 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).

For assets placed in service in taxable years beginning from and after December 31, 2016, enter the total amount of depreciation attributable to assets used in your Arizona business allowable pursuant to IRC § 167(a) for the taxable year calculated as if the bonus depreciation is the full amount of federal bonus depreciation pursuant to IRC § 168(k).

Add all amounts together and enter the total on line 38.

Line 41 - Partnership Income Adjustment

Use this adjustment if Form 165 Schedule K-1(NR), line 17, column (c) shows a difference between federal and state distributable income.

If the difference reported on line 17, column (c), is a negative number, enter that portion of the difference that is allocable to partnership income taxable by Arizona as a subtraction on line 41. Do not include a minus sign or use parenthesis.

NOTE: If the difference reported on line 17, column (c) of your

Arizona Form 165 Schedule K-1(NR), is a positive number,

enter that portion of the difference that is allocable to

partnership income taxable by Arizona as an addition on line 29.

Line 42 -

Subtract lines 37 through 41 from line 32 and enter the difference.

Line 43 - Interest on U.S. Obligations

Enter the amount of interest income from U.S. Government obligations included as income on line 16 in the ARIZONA column. U.S. Government obligations include obligations such as savings bonds and treasury bills. You must reduce this subtraction by any interest or other related expenses incurred to purchase or carry the obligation. Reduce the subtraction only by the amount of such expenses included in your Arizona gross income.

Line 44 - Agricultural Crops Given to Arizona Charitable Organizations

Arizona law allows a subtraction for qualified crop gifts made during 2020 to one or more charitable organizations. To take this subtraction, all of the following must apply:

1.You must be engaged in the business of farming or processing agricultural crops.

2.The crop must be grown in Arizona.

3.You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax.

The subtraction is the greater of the wholesale market price or the most recent sale price for the contributed crop.

The amount of subtraction cannot include any amount deducted pursuant to IRC § 170 with respect to crop contribution that exceeds the cost of producing the contributed crop. To determine if your crop gift qualifies for this subtraction, see the department’s procedure, ITP 12-1, Establishing an Income Tax Subtraction for Agricultural Crops Contributed to Charitable Organizations.

12

DO NOT STAPLE ANY ITEMS TO THE RETURN.

Place any required federal and AZ schedules or other documents after Form 140NR.

 

 

 

 

 

 

 

 

 

 

Arizona Form

 

Nonresident Personal Income Tax Return

 

 

 

 

 

 

 

FOR CALENDAR YEAR

 

 

 

 

 

 

 

 

 

 

 

140NR

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82F

 

 

Check box 82F

 

 

 

 

 

 

 

 

 

M

 

M

 

D

 

D

 

2

 

0

 

2

 

0

 

 

 

 

 

 

 

 

M

M

 

 

D

 

D

 

2

 

 

0

 

 

Y

 

Y

 

 

 

 

 

 

OR FISCAL YEAR BEGINNING

 

 

 

 

 

 

 

 

AND ENDING

 

 

 

 

 

 

 

 

 

 

.

66F

 

 

 

 

if filing under extension

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your First Name and Middle Initial

 

 

 

 

 

 

 

 

Last Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your Social Security Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enter

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

your

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spouse’s First Name and Middle Initial (if box 4 or 6 checked)

 

Last Name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spouse’s Social Security No.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SSN(s)

.

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Home Address - number and street, rural route

 

 

 

 

 

 

 

 

 

 

 

 

 

Apt. No.

 

 

 

 

 

 

 

Daytime Phone (with area code)

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City, Town or Post Office

State

 

 

 

 

ZIP Code

 

 

 

 

 

 

 

 

 

 

 

Last Names Used in Last Four Prior Year(s) (if different)

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

97

 

 

STATUS

 

4

 

Married filing joint return

4a Injured Spouse Protection of Joint Overpayment

 

 

 

 

REVENUE USE ONLY. DO NOT MARK IN THIS AREA.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

Head of household: Enter name of qualifying child or dependent on next line:

 

 

 

 

 

 

 

 

 

 

 

88R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FILING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Married filing separate return: Enter spouse’s name and Social Security Number above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

Single

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXEMPTIONS

 

 

 

 

 

Enter the number claimed. Do not put a check mark.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

Age 65 or over (you and/or spouse)

 

If completing lines 8 and 9, also complete lines 47

 

 

 

 

81P

PM

 

 

 

 

 

 

 

 

 

 

 

80R

RCVD

 

 

 

 

 

 

 

and 48. For lines 10a and 10b, complete line 59.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

Blind (you and/or spouse)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10a

 

 

Dependents: Under age of 17.

10b

 

 

Dependents: Age 17 and over.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11-13 Residency Status (check one): 11Nonresident

12Nonresident Active Military

13Composite Return (see instructions - page 26

 

 

 

 

 

 

 

 

 

(Box 10a and 10b): Dependent Information. See instructions. For more space, check the box and complete page 4.

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

 

 

 

 

 

 

 

 

(b)

 

 

 

 

(c)

 

 

 

 

 

 

(d)

 

 

 

(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dependent Age

 

if you did not claim

 

 

 

 

 

 

 

 

 

 

 

FIRST AND LAST NAME

 

 

 

 

SOCIAL SECURITY NO.

 

 

RELATIONSHIP

NO. OF MONTHS

included in:

 

 

 

Dependents

 

 

 

 

 

 

 

(Do not list yourself or spouse.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIVED IN YOUR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

this person on your

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

2

 

 

 

 

 

federal return due to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOME IN 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Box 10a)

(Box 10b)

 

 

 

educational credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10d

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10e

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10f

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14 Check box 14 if married and you are the spouse of an active duty military member

 

 

 

 

 

 

2020 FEDERAL

 

 

 

 

 

 

 

2020 ARIZONA

 

 

 

 

 

 

 

 

 

who qualifies for relief under the Military Spouses Residency Relief Act

 

 

14

Amount from Federal Return

 

 

 

 

Source Amount Only

 

 

 

 

 

15

 

Wages, salaries, tips, etc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

16

 

Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

17

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

Income

 

18

 

Arizona income tax refunds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

19

 

Business income or (loss) from federal Schedule C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

20

 

Gains or (losses) from federal Schedule D. See instructions for ARIZONA column

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Rents, royalties, partnerships, estates, trusts, small business corporations from federal Schedule E...

 

21

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

22

 

Other income reported on your federal return. Include your own schedule

 

 

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

Total income: Add lines 15 through 22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

24

 

Other federal adjustments: Include your own schedule

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

25

 

Federal adjusted gross income: Subtract line 24 from line 23 in the FEDERAL column

25

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

Arizona gross income: Subtract line 24 from line 23 in the ARIZONA column

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

27

 

Arizona income ratio: Divide line 26 by line 25, and enter the result (not over 1.000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions

 

28

 

Total depreciation included in Arizona gross income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

 

 

 

 

 

 

00

 

 

 

29

 

Partnership Income adjustment. See instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

 

 

00

 

 

 

30

 

Net capital (loss) derived from the exchange of legal tender: See instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

 

00

 

 

 

31

 

Other Additions to Income. See instructions for completing the schedule on page 5

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32

 

Subtotal: Add lines 26, 28, 29, 30, and 31 and enter the total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

00

 

2

 

33

 

Total Arizona sourced net capital gain or (loss). See instructions

..........................................

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

page

 

34

 

Total net short-term capital gain or (loss) included on line 20, ARIZONA column

34

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

Total net long-term capital gain or (loss) included on line 20, ARIZONA column

 

35

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36

 

Net long-term capital gain from assets acquired after December 31, 2011. See instructions

 

36

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cont.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

Multiply line 36 by 25% (.25) and enter the result

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

38

 

Net capital gain derived from investment in qualified small business

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

Subtractions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39

 

Net capital gain derived from the exchange of legal tender: See instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

40

 

Recalculated Arizona depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

41

 

Partnership Income adjustment. See instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

42

 

Subtract lines 37 through 41 from line 32.

Enter the difference

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADOR 10177 (20)

AZ Form 140NR (2020)

Page 1 of 5

Subtractions – Exemptions cont. from page 1

 

Balance of Tax

 

 

 

 

Total Payments and

Refundable Credits

 

 

Tax Due or

Overpayment

 

 

 

 

 

Voluntary Gifts

 

 

 

 

 

Penalty

 

 

 

 

Refund or

Amount Owed

 

 

Your Name (as shown on page 1)

Your Social Security Number

 

 

43

Interest on U.S. obligations such as U.S. savings bonds and treasury bills

 

 

 

 

 

 

 

 

 

43

44

Agricultural crops contributed to Arizona charitable organizations

 

 

 

 

 

 

 

 

 

44

45

Other Subtractions from Income. See instructions for completing the schedule on page 5

 

 

 

 

 

 

45

46

Subtract lines 43 through 45 from line 42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46

47

.....................................................................Age 65 or over: Multiply the number in box 8 by $2,100

 

 

 

 

 

 

 

 

47

 

 

 

 

 

00

48

Blind: Multiply the number in box 9 by $1,500

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

00

49

Other Exemptions. See instructions

 

49E

 

 

Multiply the number in box 49E by $2,300

49

 

 

 

 

 

00

50

Add lines 47, 48, and 49. Enter the total

 

 

 

 

 

 

 

 

50

 

 

 

 

 

00

51

..............................................................................................................Multiply line 50 by the Arizona ratio on line 27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51

52

Arizona adjusted gross income: Subtract line 51 from line 46. If less than zero, enter “0”

 

 

52

53

Deductions: Check box and enter amount. See instructions

53I

ITEMIZED

 

STANDARD

53

 

53S

 

 

 

54

If you checked box 53S and claim charitable deductions, check 54CComplete page 3. See instructions

 

54

55

Arizona taxable income: Subtract lines 53 and 54 from line 52.

If less than zero, enter “0”

 

 

 

 

 

 

 

55

56

Compute the tax using amount from line 55 and Tax Table X or Y

 

 

 

 

 

 

 

 

 

56

57

Tax from recapture of credits from Arizona Form 301, Part 2, line 31

 

 

 

 

 

 

 

 

 

57

58

Subtotal of tax: Add lines 56 and 57 and enter the total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58

59

Dependent Tax Credit. See instructions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59

60

Nonrefundable credits from Arizona Form 301, Part 2, line 61

 

 

 

 

 

 

 

 

 

60

61

Balance of tax: Subtract lines 59 and 60 from line 58.

If the sum of lines 59 and 60 is more than line 58, enter “0”

...................

 

61

62

2020 AZ income tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62

63

..2020 AZ estimated tax payments 63a

 

 

 

 

 

00

Claim of Right 63b

 

 

 

00

Add 63a and 63b..

63c

64

2020 AZ extension payment (Form 204)

 

 

 

 

..............................................

 

 

651308-I 652349

64

65

Other refundable credits: Check the box(es) and enter the total amount

 

 

65

66

Total payments and refundable credits: Add lines 62 through 65 and enter the total

 

 

 

 

 

 

 

66

67

TAX DUE: If line 61 is larger than line 66, subtract line 66 from line 61, and enter amount of tax due. Skip lines 68, 69 and 70

 

67

68

OVERPAYMENT: If line 66 is larger than line 61, subtract line 61 from line 66, and enter amount of overpayment

 

68

69

Amount of line 68 to be applied to 2021 estimated tax

 

 

 

 

 

 

 

 

 

 

 

 

69

70

Balance of overpayment: Subtract line 69 from line 68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

70

71 - 81 Voluntary Gifts to:

 

 

 

 

Solutions Teams

71

 

00

Arizona Wildlife

 

 

72

 

 

00

 

 

 

 

 

Assigned to Schools

 

 

 

 

 

 

Child Abuse Prevention

73

 

00

Domestic Violence Services74

 

00

Political Gift

 

75

 

 

00

 

 

Neighbors Helping Neighbors..76

 

00

Special Olympics

77

 

00

Veterans’ Donations Fund 78

 

 

00

 

 

I Didn’t Pay Enough Fund

79

 

00

Sustainable State Parks

 

00

Spay/Neuter of Animals

81

 

 

00

 

 

 

and Road Fund

80

 

 

 

 

82

Political Party (if amount is entered on line 75 - check only one):

821Democratic

822Libertarian

823Republican

 

 

83

Estimated payment penalty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83

84841Annualized/Other 842Farmer or Fisherman 843Form 221 included

85

Add lines 71 through 81 and 83; enter the total

85

86

REFUND: Subtract line 85 from line 70. If less than zero, enter amount owed on line 87

86

 

Direct Deposit of Refund: Check box 86A if your deposit will be ultimately placed in a foreign account; see instructions. 86A

 

 

 

ROUTING NUMBER

ACCOUNT NUMBER

 

 

CChecking or

 

 

 

 

98 S Savings

 

 

 

87

AMOUNT OWED: Add lines 67 and 85. Make check payable to Arizona Department of Revenue; write your SSN on payment ...

87

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

00

PLEASE SIGN HERE

Under penalties of perjury, I declare that I have read this return and any documents with it, and to the best of my knowledge and belief, they are true, correct and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

YOUR SIGNATUREDATEOCCUPATION

SPOUSE’S SIGNATURE

 

 

 

 

DATE

 

SPOUSE’S OCCUPATION

 

 

 

 

 

 

 

 

PAID PREPARER’S SIGNATURE

 

 

DATE

 

FIRM’S NAME (PREPARER’S IF SELF-EMPLOYED)

 

 

 

 

 

 

 

 

 

 

PAID PREPARER’S STREET ADDRESS

 

 

 

 

 

 

 

 

PAID PREPARER’S TIN

 

 

 

 

 

 

(

)

PAID PREPARER’S CITY

STATE

 

ZIP CODE

 

 

 

 

 

PAID PREPARER’S PHONE NUMBER

If you are sending a payment with this return, mail to Arizona Department of Revenue, PO Box 52016, Phoenix, AZ 85072-2016.

Include the payment with Form 140NR.

If you are expecting a refund or owe no tax, or owe tax but are not sending a payment, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138.

ADOR 10177 (20)

AZ Form 140NR (2020)

Page 2 of 5

Your Name (as shown on page 1)

Your Social Security Number

2020 Form 140NR - Standard Deduction Increase

for Charitable Contributions

You must complete this worksheet if you are taking an increased standard deduction for charitable contributions. Include the completed worksheet with your tax return, when filed. If you do not include the completed worksheet, your standard deduction will not be increased.

Taxpayers electing to take the Standard Deduction may increase the standard deduction amount by 25% (.25) of the total amount of the taxpayer’s charitable deductions that would have been allowed if the taxpayer elected to claim itemized deductions on the Arizona tax return.

Charitable contributions (lines 1C, 2C, and 3C) are those gifts allowed on federal Form 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return.

NOTE 1: As a nonresident filing Form 140NR, you are required to apportion your allowable increased standard deduction based on your Arizona income ratio computed on page 1, line 27.

NOTE 2: If you did not itemize deductions on your federal return and reported the allowable deduction (not to exceed $300) for qualifying charitable contributions on your federal return, you must reduce the total 2020 contributions by the amount for which you took the allowable deduction on your federal return. Enter the amount of your federal deduction on line 5C.

NOTE 3: You must reduce your contribution amount by the total 2020 contributions for which you are claiming an Arizona tax credit on Form 321 (line 20) and/or Form 352 (line 20) for the current tax year (2020) or claimed on your return for the prior tax year (2019). The prior tax year amounts can be found on line 10 of your 2019 Forms 321 and 352. Enter this amount on line 6C.

NOTE 4: If you itemized deductions on your federal return (1040 Schedule A) and were required to adjust the amount of your allowable contributions on your federal 1040 Schedule A for the amount claimed as a tax credit on your Arizona income tax return, include the amount of the federal contribution adjustment to line 1C and enter the amount of the Arizona tax credit on line 6C.

Complete the worksheet to determine your allowable increased standard deduction for charitable contributions.

1C

2020 Gifts by cash or check

1C

 

 

 

2C

2020 Other than by cash or check

2C

 

 

 

3C

Carryover from prior year

3C

 

 

 

4C

Add lines 1C through 3C and enter the total

4C

 

 

 

5C

If you did not itemize deductions on your federal return (1040 Schedule A) and took

 

 

 

 

 

a deduction for charitable contributions on your federal return, enter the amount of

 

 

 

 

 

charitable contribution deduction reported on your federal return. (See Note 2)

5C

 

 

 

6C

Total charitable contributions made in 2020 for which you are claiming a credit

 

 

 

 

 

under Arizona law for the current (2020) or prior (2019) tax year

6C

 

 

 

 

Subtract lines 5C and 6C from line 4C and enter the difference. If less than

 

 

 

 

7C

zero, enter “0”

7C

 

 

 

8C

Multiply line 7C by 25% (.25) and enter the result

8C

 

 

 

9C

Enter your Arizona income ratio from page 1, line 27

9C

 

 

 

 

10C

Multiply line 8C by the ratio on line 9C and enter the result

10C

 

 

 

 

 

 

 

 

 

00

00

00

00

00

00

00

00

00

Enter the amount shown on line 10C on page 2, line 54

Be sure to check box 53S for Standard Deduction on line 53.

Check box 54C for charitable deductions on line 54. If you do not check this box, you may be denied the increased standard deduction.

ADOR 10177 (20)

AZ Form 140NR (2020)

Page 3 of 5

Your Name (as shown on page 1)

Your Social Security Number

2020 Form 140NR Dependent and Other Exemption Information

10g

10h

10i

10j

10k

10l

10m

10n

10o

10p

10q

1

2

3

4

5

6

7

8

9

10

Include page 4 with your return if:

You are listing additional dependents (for box 10a and 10b) from page 1.

You are claiming Other Exemptions on page 2, line 49.

Part 1: Dependents (Box 10a and 10b) continued from page 1

Information used to compute your allowable Dependent Tax Credit on page 2, line 59.

NOTE: If you have more than three qualifying dependents, you must complete Part 1 and the worksheet in the instructions, to compute your Dependent Tax Credit on line 59.

 

(a)

(b)

(c)

(d)

 

(e)

(f)

FIRST AND LAST NAME

SOCIAL SECURITY NO.

RELATIONSHIP

NO. OF MONTHS

Dependent Age

IF YOU DID NOT

 

 

(Do not list yourself or spouse.)

 

 

LIVED IN YOUR

included in:

CLAIM THIS PERSON

 

 

ON YOUR FEDERAL

 

 

 

 

HOME IN 2020

 

 

 

 

 

 

 

 

 

 

RETURN DUE TO

 

 

 

 

 

1

 

2

EDUCATIONAL

 

 

 

 

 

(Box 10a)

 

(Box 10b)

CREDITS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part 2: Other Exemptions

Information used to compute your allowable Other Exemptions on page 2, line 49.

 

(a)

(b)

 

(c)

(d)

FIRST AND LAST NAME

SOCIAL SECURITY NO.

AGE 65 OR OVER

STILLBORN

(Do not list yourself or spouse.)

 

 

(see instructions)

CHILD IN 2020

 

 

 

 

 

 

 

 

 

 

 

 

C1

 

C2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enter the total number of individuals listed in Part 2 in box 49E on page 2, line 49.

ADOR 10177 (20)

AZ Form 140NR (2020)

Page 4 of 5

Your Name (as shown on page 1)

Your Social Security Number

2020 Form 140NR - Adjustments to Arizona Gross Income

Complete and include this schedule with your tax return only if you are making any adjustments to your Arizona Gross Income.

A. Other Additions to Arizona Gross Income - Line 31 (see instructions for more information)

 

 

A

Fiduciary Adjustment from Arizona Form 141AZ Schedule K-1(NR)……………………………………

A

00

B

Items Previously Deducted for Arizona Purposes………………………………………………………………

B

00

C

Claim of Right Adjustment for Amounts Repaid in 2020………………………………………………………

C

00

D

Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years………………………………………....

D

00

E

Addition to S corporation Income Due to Claiming Pass-through Credit (Forms 312, 315, and 320)

E

00

F

Wage Expense for Employers of TANF Recipients who claim a credit (Form 320)………………………………

F

00

G

Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small

 

 

 

Businesses (Form 338)…………………………………………………………………………………………

G

00

H

Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal

 

 

 

Adjusted Gross Income……………………………………………………………………………………………....

H

00

I

Americans with Disabilities Act - Access Expenditures…………………………………………………………....

I

00

J

Amortization or depreciation for childcare facility before 1990…………………………………………………...

J

00

K

Other Adjustments related to tax credits

K

00

L

Other Adjustments - see instructions

L

00

M

Total Other Additions to Arizona Gross Income. Add all amounts and enter the total here and on

 

 

 

 

M

00

 

page 1, line 31

 

 

B. Other Subtractions From Arizona Gross Income - Line 45 (see instructions for more information)

 

A

Certain Wages of AmerIcan Indians.............................................................……………

A

00

B

Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace…………………………

B

00

C

Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……

C

00

D

Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………..

D

00

E

Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………..

E

00

F

Fiduciary Adjustment from Arizona Form 141AZ Schedule K-1(NR)

F

00

G

Net Operating Loss Adjustment

G

00

H

Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal

 

 

 

Adjusted Gross Income……………………………………………………………………………………………....

H

00

I

Americans with Disabilities Act – Access Expenditures………………………………………………………

I

00

J

Exploration Expenses deferred before January 1, 1990

J

00

K

Other Adjustments - see instructions

K

00

L

Total Other Subtractions from Arizona Gross Income. Add all amounts and enter the total here and on

 

 

 

 

L

00

 

page 2, line 45

 

 

ADOR 10177 (20)

AZ Form 140NR (2020)

Page 5 of 5

THIS PAGE INTENTIONALLY LEFT BLANK

Your Social Security Number
Spouse’s Social Security Number

Arizona Schedule

A(NR)

Itemized Deductions

2020

For Nonresidents

Include with your return.

Your Name as shown on Form 140NR

Spouse’s Name as shown on Form 140NR (if filing joint)

Adjustment to Medical and Dental Expenses

1

Medical and dental expenses

1

 

00

 

2

Medical expenses allowed to be taken as a federal itemized deduction

2

 

00

 

3

If line 1 is the same as or more than line 2, subtract line 2 from line 1; otherwise, go to line 4

3

4

If line 2 is more than line 1, subtract line 1 from line 2

 

4

Adjustment to Interest Deduction

5If you received a federal credit for interest paid on mortgage credit certificates (from federal Form 8396), enter the amount of mortgage interest you paid for 2020 that is equal to the amount of your 2020 federal

credit

5

Adjustment to Charitable Contributions

 

6 Amount of charitable contributions for which you are claiming a credit under Arizona law

6

Adjustment to State Income Taxes

7Amount of state taxes deducted on the federal Schedule A that are for contributions to a charity for which an

 

Arizona credit was received. If your tax deductions were limited on your federal Schedule A complete the

 

worksheet on page 2 to determine the adjustment on line 7

7

 

 

 

 

 

 

 

 

 

 

 

Itemized Deductions

 

 

 

 

 

 

 

 

 

 

8

Add the amounts on lines 3 and 5

8

 

 

 

 

 

 

00

 

 

Add the amounts on lines 4, 6 and 7

 

 

 

 

 

9

9

 

 

 

00

 

10

.................Total federal itemized deductions allowed to be taken on federal return

10

 

 

 

00

 

11

........................................................................Enter the amount from line 8 above

11

 

 

 

00

 

12

Add lines 10 and 11

12

 

 

 

00

 

13

........................................................................Enter the amount from line 9 above

13

 

 

 

00

 

14

..................................Adjusted itemized deductions: Subtract line 13 from line 12

14

 

 

 

00

 

15

.......................Enter your Arizona income ratio from Form 140NR, page 1, line 27

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16Arizona itemized deductions: Multiply line 14 by the ratio on line 15. Enter the result here and

on Form 140NR, page 2, line 53

16

!You must include a copy of federal Form 1040, Schedule A with your

IMPORTANT return if you itemize your deductions on your Arizona return.

00

00

00

00

00

00

ADOR 10562 (20)

Page 1 of 2

Your Name (as shown on page 1)

Your Social Security Number

2020 Form 140NR Schedule A(NR) Adjustment to State Income Taxes

Arizona Revised Statute § 43-1042 was amended to require taxpayers to reduce the amount of itemized deductions for amounts used to claim an Arizona credit even if the amount was deducted on the federal return as taxes paid rather than charitable contributions.

1A

Total Taxes on the federal Schedule A before applying the federal limitations

1A

00

2A

Amount included in the line 1A for which you claimed an Arizona credit

2A

00

3A

Subtract line 2A from line 1A. Enter the difference

3A

00

4A

Limit from federal Schedule A. Enter $10,000 ($5,000 if married filing separate)..

4A

00

5A

Enter the smaller of line 3A or 4A

5A

00

6A

Enter total taxes claimed on federal Schedule A (after limitation)

6A

00

7A

Subtract line 5A from line 6A. This is the amount of your Arizona adjustment.

 

 

 

Enter the amount on page 1, line 7

7A

00

ADOR 10562 (20)

AZ Schedule A(NR) (2020)

Page 2

2020 Form 140NR Schedule A(NR) Itemized Deductions

For Nonresidents Only

You may itemize on your Arizona return, even if you do not itemize on your federal return. Before you complete this form, you must first complete federal Form 1040 Schedule A.

Even if you don’t itemize deductions on your federal return, you must include a copy of the federal Form 1040 Schedule A, with this form.

The itemized deductions allowed for Arizona purposes are those itemized deductions that are allowable under the Internal Revenue Code (IRC).

As an Arizona nonresident, you must prorate these deductions by the income ratio which your Arizona gross income is to your federal adjusted gross income.

In some cases, the amount allowed for medical and dental expenses, mortgage interest, gambling losses, and charitable contributions may be different for Arizona purposes than for federal purposes.

General Instructions

Arizona is a community property state. If you are married filing a separate return and claiming itemized deductions, see the department’s Income Tax Ruling, ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers who file Separate Returns, for more information claiming itemized deductions.

When married taxpayers file separate Arizona income tax returns, both filers must either claim the standard deduction or itemize deductions. One spouse may not claim a standard deduction when the other spouse itemizes deductions. If this situation does occur, the standard deduction will be disallowed regardless of which return may have been filed first.

The treatment of itemized deductions by spouses who file separate returns depends on whether the deductible expenses were paid with community funds or with separate funds. If the expenses were paid with community funds, the deduction is divided equally between each spouse. Expenses paid with separate funds are deductible by the spouse who paid the expenses. Under no circumstances may more than 100 percent of the allowable deductions be claimed.

NOTE: If you or your spouse claim 100% of the allowable

itemized deductions, the other spouse must enter “0” on Form

140, line 43, and that spouse cannot claim an adjustment for either itemized deductions or the standard deduction.

You must complete lines 1 through 7 if any of the following apply:

You are deducting medical and dental expenses.

You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates.

You are claiming an Arizona credit for a charitable contributions or a state income tax deduction.

If any of the above items apply to you, complete federal form 1040 Schedule A, and then complete lines 1 through 15, as instructed.

Line-by-Line Instructions

Lines 1 through 4 - Medical and Dental Expenses

Skip lines 1 through 4 if you are not deducting medical and dental expenses.

Line 1 -

Enter the total of your medical and dental expenses. Do not include any expenses that were paid by insurance or other sources.

Do not include the following amounts you paid through an employer-sponsored health insurance plan (cafeteria plan) unless your employer included the amount(s) in Box 1 of your Form W-2.

Insurance premiums you paid through the plan.

Other medical and dental expenses paid by the plan.

If you are self-employed, do not include any amount that you paid for health insurance that you deducted in computing your federal adjusted gross income.

Lines 2 through 4 -

Complete lines 2 through 4 as instructed on the form.

Line 5 - Interest Paid on Mortgage Credit Certificates

Skip line 5 if you are not claiming a federal credit for interest paid on mortgage credit certificates on your federal return.

If you received a federal credit for interest paid on mortgage credit certificates (using federal Form 8396), you may deduct some of the mortgage interest you paid in 2020 that you could not deduct for federal purposes.

Line 6 - Adjustment to Charitable Contributions

Skip line 6 if you are not claiming a credit for any of your charitable contributions.

You cannot claim both a deduction and a credit for the same charitable contributions. Enter the amount of charitable contributions for which you are claiming a credit.

For Example: (table continued on next page)

If you

 

 

 

You must

claimed a

 

For:

 

make an

credit on

 

 

 

entry on line

Arizona

 

 

 

6 if you

Form:

 

 

 

deducted the

321

Contributions to Qualifying

amount

Charitable Organizations

 

contributed

 

 

322

Contributions Made or Fees Paid

as an

to Public School

 

itemized

 

 

 

 

 

 

323

Contributions

to Private

School

deduction on

Tuition Organization

 

 

 

 

 

federal Form

 

Donation of School Site

 

331

 

1040

 

 

 

 

 

Contributions

made

by an

Schedule A.

335-I

S Corporation to a School Tuition

 

 

Organization - Individual

 

 

340

Donations to

the Military Family

 

Relief Fund

 

 

 

 

 

 

 

Form 140NR Schedule A(NR)

If you

 

 

 

 

claimed a

 

For:

 

 

credit on

 

 

 

 

Arizona

 

 

 

 

Form:

 

 

 

 

 

Contributions

made

by

an

 

S Corporation to a School Tuition

341-I

Organization

for

Displaced

 

Students or

Students

with

 

Disabilities - Individual

 

 

348

Contributions to Certified School

Tuition Organization - Individual

 

352Contributions to Qualifying Foster Care Charitable Organizations

If you claimed a credit on your 2019 return for a contribution that you made during 2020 (see Arizona Forms 321, 322, 323, 348 and 352), you must make this adjustment on your 2020 return, even though you claimed the credit on your 2019 return.

If you are claiming a credit on your 2020 return for a contribution made during 2021 (see Arizona Forms 321, 322, 323, 348 and 352), you must make this adjustment on your 2021 return, even though you are claiming the credit on your 2020 return.

Line 7 - Adjustment to State Income Taxes

Arizona Revised Statute § 43-1042 was amended to require taxpayers to reduce the amount of itemized deductions for amounts used to claim an Arizona credit even if the amount was deducted on the federal return as taxes paid rather than charitable contributions.

Did you claim sales taxes rather than income taxes on your federal schedule A?

If yes, stop no adjustment is necessary. Go to line 8.

If no, complete the worksheet on page 2 of Form 140 Schedule A(NR) to determine the amount of your adjustment to enter on line 7.

Lines 8 through 14 - Adjusted Itemized Deductions

Complete lines 8 through 14 as instructed on the form.

Line 15 -

Enter your Arizona income ratio from Form 140NR, page 1, line 27. Enter the ratio in decimal form.

Line 16 - Arizona Itemized Deductions

Multiply line 14 by the income ratio on line 15. Enter the result on line 16 and on Form 140NR, page 2, line 53.

NOTE: The amount entered on line 16 cannot be a negative

number. Entering a negative number on Form 140NR, line 53, may delay the processing of your return.

2

DO NOT STAPLE ANY ITEMS TO THE RETURN.

 

Arizona Form

 

Application for Filing Extension

 

 

 

 

 

 

FOR

 

 

 

 

 

 

 

CALENDAR YEAR

 

204

 

 

 

 

 

 

 

 

 

For Individual Returns Only

 

 

 

 

 

2020

 

For the calendar year 2020 or fiscal year beginning

 

M M

 

D D

 

2 0 2 0

 

and ending

 

M M

 

D D

 

2

0 Y Y

 

. 66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your First Name and Middle Initial

 

 

 

 

Last Name

 

Enter

 

 

Your Social Security Number

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

your

 

 

 

 

 

 

 

 

 

 

Spouse’s First Name and Middle Initial (if filing joint)

 

 

 

 

Last Name

 

 

 

Spouse’s Social Security No.

 

 

 

 

 

SSN(s)

.

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Home Address - number and street, rural route

 

 

 

 

 

 

 

 

 

Apt. No.

 

Daytime Phone (with area code)

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City, Town or Post Office

State

 

 

 

 

 

ZIP Code

REVENUE USE ONLY. DO NOT MARK IN THIS AREA.

3

 

 

 

 

 

 

 

 

 

 

 

 

 

88

 

 

 

 

 

 

 

 

 

 

 

 

 

Resident Personal Income Tax Forms – Check only one box:

140

140A

140EZ

140PTC

140ET

 

 

 

 

 

 

Part-Year Resident Personal Income Tax, Form 140PY

 

 

 

 

 

 

Nonresident Personal Income Tax, Form 140NR

 

 

 

 

 

 

 

Nonresident Composite, Form 140NR

 

 

 

 

 

81 PM

 

80 RCVD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All ext ension r equest s m ust be post m ar ked on or befor e

An Ar izona ext ension cannot be

grant ed for m or e t han

t he or iginal due dat e of t he r et ur n, unless t he or iginal due

six m ont hs

beyond t he or iginal

due dat e of t he r et ur n .

dat e falls on a Sat ur day, Sunday, or legal holiday.

I n t hat

Ar izona w ill

grant

an aut om at ic

six- m ont h ext ension t o

case, your r equest m ust be post m ar ked on or befor e t he

individuals filing For m s 140, 140A, 140EZ, 140NR, 140PY,

business day follow ing t hat Sat ur day, Sunday, or legal

140PTC or

140ET.

Ar izona w ill

accept a valid federal

holiday.

I f you ar e a calendar year filer, your r equest for

ext ension for t he per iod cover ed by t he federal ext ension .

a 2020 filing ext ension m ust be post m ar ked on or befor e

This includes t he aut om at ic six- m ont h individual federal

Apr il 15, 2021 .

 

 

 

filing ext ension .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHECK ONE BOX:

Fiscal Tax Year Ending

 

 

Return Due Date

Individual Calendar Year Filers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 15, 2021

This is a request for an automatic 6-month filing extension

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individual Fiscal Year Filers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enter taxable year end date and 6-month extended due date

M

 

M

 

D

 

D

 

Y

 

Y

 

Y

 

Y

M

 

M

 

D

 

D

 

Y

 

Y

 

Y

 

Y

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment.

1

Tax liability for 2020. You may estimate this amount

1

 

00

2

Arizona income tax withheld during 2020

2

 

00

 

 

3

Arizona estimated tax payments for 2020

3

 

00

 

 

4

Credits you will claim on your 2020 return. See Arizona Form 301 for a list of credits. 4

 

00

 

 

5

Add lines 2 through 4

5

 

00

6

Balance of Tax: Subtract line 5 from line 1

6

 

00

7

Enter amount of payment enclosed with this extension

PAYMENT ENCLOSED 7

 

00

Make check payable to Arizona Department of Revenue; write your SSN and tax year on your payment.

Include your payment with this form.

For Nonresident Composite returns, write “Composite 140NR” on payment and include the taxable year end and entity’s EIN.

I M PORTAN T: I f you ar e filing under a federal ext ension but ar e m aking an Ar izona ext ension pay m ent by cr edit car d or elect r onic pay m ent , do n ot m a il For m 2 0 4 t o us. We w ill apply your ext ension t ax paym ent t o your account .

I f you a r e sending a paym ent w it h t his r equest , m ail t o Ar izona Depar t m ent of Revenue, PO Box 29085, Phoenix, AZ 85038 - 9085 .

I f you ar e n ot sending a paym ent w it h t his r equest , m ail t o Ar izona Depar t m ent of Revenue, PO Box 52138, Phoenix, AZ 85072 - 2138 .

ADOR 10576 (20)

THIS PAGE INTENTIONALLY LEFT BLANK

 

Arizona Form

2020 Filing Extension For Individuals

204

 

 

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 then click on Publications.

Leave the paper behind and e-file your Arizona extension request.

Visit www.azdor.gov for e-file requirements.

Purpose of Form 204

Use Arizona Form 204 to apply for an extension of time to file Arizona Forms 140, 140A, 140EZ, 140ET, 140PTC, 140PY, or 140NR. Individuals use this form to apply for an automatic 6-month extension.

If you are using Form 204 to request a filing extension for an Arizona Form 140NR composite return, enter the partnership or S corporation’s employer identification number (EIN) in the area designated for an individual’s Social Security Number (SSN).

Also, use Form 204 to remit an extension payment whether you are requesting an Arizona extension or using a valid federal extension. However, if you are filing under a federal extension, but making an electronic extension payment or making an extension payment using a credit card, you do not need to mail in Form 204.

Arizona will accept your federal extension for the period covered by the federal extension.

Foreign Address

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.

When to File Form 204

All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a Saturday, Sunday, or legal holiday.

In that case, your request must be postmarked on or before the business day following that Saturday, Sunday or legal holiday.

Calendar year filers have until Monday, April 15, 2021, to file the request for an extension. This will allow you to file your return by October 15, 2021.

Complete Form 204 to request an automatic 6-month extension. Write 2020 Extension Request on the front of your envelope.

If you are including a payment with this request, mail the form to:

Arizona Department of Revenue PO Box 29085

Phoenix, AZ 85038-9085

If you are not including a payment with your request, mail the form to:

Arizona Department of Revenue PO Box 52138

Phoenix, AZ 85072-2138

The department will not return a copy of the Form 204 to you. Be sure to keep a copy of the completed Form 204.

An extension does not extend the time to pay your income tax. You must still pay your tax liability by April 15, 2021, or by the original due date of your return.

If you do not pay at least 90% (.90) of the income tax liability disclosed by your return by the return’s original due date, you will be subject to the extension underpayment penalty. We charge interest from the original due date to the date of payment.

Extension Underpayment Penalty: We impose this penalty if you do not pay at least 90% (.90) of the income tax liability shown on your return filed under an extension by the return’s original due date. The extension underpayment penalty is ½ of 1% (.005) of the income tax not paid for each 30-day period or fraction of a 30-day period. We impose this penalty from the original due date of the return until you pay the tax. The extension underpayment penalty cannot exceed 25% (.25) of the unpaid income tax. If we charge you the extension underpayment penalty, we will not charge you the late payment penalty under Arizona Revised Statutes § 42-1125(D).

Nonresident Aliens

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 2020 Arizona return after April 15, 2021, you must ask for a filing extension.

Arizona will allow up to a 6-month extension. This will allow you to file your return by October 15, 2021.

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

Arizona Form 204

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.

Making Your Payment

Individuals may make extension payments by check, electronic check, money order, or credit card.

Partnerships or S corporations making an extension payment on behalf of nonresidents participating in the filing of an Arizona Form 140NR composite return must make that payment by check or money order.

Check or money order

If paying by check or money order, make your check or money order payable to Arizona Department of Revenue.

Write your SSN (or EIN) and 2020 Extension Request on the front of your check or money order.

Include your check or money order with Form 204.

Electronic payment from your checking or savings account

You can make an electronic payment from your checking or savings account to pay your balance due for 2020. There is no fee to use this method. To make an electronic payment, go to www.AZTaxes.gov and click on the “Make a Payment” link.

Be sure to enter the correct routing number and account number for your checking or savings account. You will be charged a $50 NSF (non-sufficient funds) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct routing and account numbers.

The “E-Check” option in the “Payment Method” drop-down box will debit the amount from the checking or savings account that you specify. If you make an electronic payment from your checking or savings account, you will receive a confirmation number. Please keep this confirmation number

as proof of payment.

NOTE: You may not make an electronic payment from your

checking or savings account if the payment will ultimately be

coming from a foreign account. In this case, you must pay by check or money order.

Credit card payment

You can pay with your Visa, MasterCard, Discover, or American Express credit card. Go to www.AZTaxes.gov and click on the “Make a Payment” link and choose the credit card option. This will take you to a third party vendor site (provider). The provider will charge you a convenience fee based on the amount of your tax payment. The provider will tell you what the fee is during the transaction; you will have the option to continue or cancel the transaction. If you complete the credit card transaction, you will receive a confirmation number. Please keep this confirmation number

as proof of payment.

Instructions Before Mailing

Make sure that you have completed all of the information requested on the front of the form.

To avoid an extension underpayment penalty, make sure you pay at least 90% (.90) of your Arizona tax liability.

2

Arizona Form 140NR

Line 45 - Other Subtractions from Income

Use line 45 if any of the following special circumstances apply.

NOTE: If you are reporting any adjustment on line 31 or line

45, complete page 5 of your tax return, Adjustments to Arizona

Gross Income, and include it with your return. If you are not

reporting any adjustment on line 30 or line 44, do not include page 5 with your return.

A. Certain Wages of American Indians

Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe’s reservation. You can subtract only those amounts that you included on line 15, ARIZONA column. The federal

government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses.

B.Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace

Arizona law provides a subtraction for converting an existing fireplace to one of the following:

a qualified wood stove,

a qualified wood fireplace, or

a gas fired fireplace and non-optional equipment directly related to its operation.

You may subtract up to $500 of the costs incurred for converting an existing fireplace on your property located in Arizona. When you figure your subtraction, do not include taxes, interest, or other finance charges.

A qualified wood stove or a qualified wood fireplace is

aresidential wood heater that was manufactured on or after July 1, 1990, or sold at retail on or after July 1, 1992. The residential wood heater must also meet the U.S. Environmental Protection Agency’s July 1990 particulate emissions standards.

A qualified gas fired fireplace is any device that burns natural or liquefied petroleum gas as its fuel through a burner system that is permanently installed in the fireplace. The conversion of an existing wood burning fireplace to noncombustible gas logs that are permanently installed in the fireplace also qualifies as a gas fired fireplace.

C.Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years

You must make an entry here if all of the following apply:

1.During a year prior to 2020, you were required to repay income held under a claim of right.

2.The amount required to be repaid was subject to Arizona income tax in the year included in income.

3.You computed your tax for that prior year under Arizona’s claim of right provisions.

4.A net operating loss or capital loss was established due to the repayment made in the prior year.

5.You are entitled to take that net operating loss or capital loss carryover into account when computing your 2020 Arizona taxable income.

6.The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your Arizona gross income.

Include the amount by which the loss carryover allowed for the taxable year under Arizona law is more than the amount included in your Arizona gross income. 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.

D. Certain Expenses Not Allowed for Federal Purposes

You may subtract some expenses that you cannot deduct on your federal return when you claim certain federal tax credits. These federal tax credits include the following:

the Federal Work Opportunity Credit,

the Empowerment Zone Employment Credit,

the credit for employer-paid social security taxes on employee cash tips, and

the Indian Employment Credit.

If you claimed any of the above federal tax credits for 2020, include the portion of wages or salaries attributable to Arizona source income that you paid or incurred during the taxable year that is equal to the amount of those federal tax credits you claimed.

E.Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year

With respect to property used in an Arizona business that is sold or otherwise disposed of during the taxable year by a taxpayer who has complied with the requirement to add back all depreciation with respect to that property on tax returns for all taxable years beginning from and after December 31, 1999, include the amount of depreciation that has been allowed pursuant to IRC § 167(a) to the extent that the amount has not already reduced Arizona taxable income in the current or prior

years. (Note: The practical effect of this is to allow a subtraction for the difference in basis for any asset for which bonus depreciation has been claimed on the federal return.) You may make this adjustment only for property that was used in your Arizona business.

F. Fiduciary Adjustment

A fiduciary uses Form 141AZ Schedule K-1(NR), to report to you your share of the fiduciary adjustment from the trust or estate. Line 5 of Form 141AZ Schedule K-1(NR), shows your share of the fiduciary adjustment from the estate or trust.

Depending on your situation, you may either add (line 31) or subtract (line 47) this amount.

If the amount on Form 141AZ Schedule K-1(NR), line 5, is a negative number, include that amount as a subtraction from income on line 45.

NOTE: If the amount on Form 141AZ Schedule K-1(NR), line 5,

is a positive number, include that amount as an addition to income on line 31.

13

Arizona Form 140NR

G. Net Operating Loss Adjustment

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.

Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct an Arizona source 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 2020 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Then figure how much of the carry forward computed under that method was derived from Arizona source losses. The amount you may take as a subtraction is the difference between the amount of Arizona source net operating loss carryover allowable as a deduction for federal purposes under the as if calculation and the amount of the Arizona source net operating loss deduction actually taken for federal purposes that you included in your Arizona gross income. On line 45, include the amount of allowable Arizona source loss carry forward deduction that exceeds the actual amount of Arizona source net operating loss carry forward deduction that was deducted in arriving at Arizona gross income.

NOTE: As an Arizona nonresident, you may have had a loss

from prior year Arizona business operations. However, the loss

cannot offset this year’s income unless the as if calculation

results in an Arizona source net operating loss deduction for

federal purposes. You can only take this subtraction if the as if

federal net operating loss deduction for 2020 includes Arizona

source losses that have not been absorbed by non-Arizona

income in any intervening years. You cannot subtract any

amount of that net operating loss that has been absorbed by non-

Arizona income in any intervening years. You also cannot take

a subtraction for any amount that has already been deducted for Arizona purposes.

H.Sole Proprietorship Income 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 may subtract the amount of the income from the dispensary that is included in the computation of your federal adjusted gross income. Include the amount of the income on line 45.

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 subtraction does not apply.

I. Americans with Disabilities Act Access Expenditures

A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year for Arizona properties to comply with the requirements of the Americans with Disabilities Act of 1990 or A.R.S. Title 41, chapter 9, article 8 by retrofitting developed real property that was originally placed in service at least ten years before the current taxable year. (A.R.S. §§ 43-1022 and 43-1024)

Eligible business access expenditures” include reasonable and necessary amounts paid or incurred to:

Remove any barriers that prevent a business from being accessible to or usable by individuals with disabilities.

Provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals.

Provide qualified readers, taped texts and other effective methods of making visually delivered materials available to individuals with visual impairments.

Acquire or modify equipment or devices for individuals with disabilities.

Provide other similar services, modifications, materials or equipment.

NOTE: A taxpayer who has been cited for noncompliance with

the Americans with disabilities act of 1990 or title 41, chapter

9, article 8 by either federal or state enforcement officials is

ineligible for a subtraction under this section for any expenditure required to cure the cited violation.

On line 45, include the amount of allowable expenses paid or incurred during the tax year.

J. Deferred Exploration Expenses

Call one of the numbers listed on page 1 of these instructions if you deferred exploration expenses determined under IRC § 617 in a taxable year ending before January 1, 1990, and you have not previously taken a subtraction for those expenses.

K. Other Adjustments

Other adjustments may be necessary. If an allowable adjustment is not listed above, enter that amount on this line. If you have more than one Other Adjustment, add the amounts together and enter the total.

L. Total Other Subtractions from Arizona Gross Income

Add all amounts on page 5, Part B, and enter the total on line 45.

Line 46 -

Subtract lines 43 through 45 from line 42.

Exemptions – Lines 47 through 49

Line 47 - Age 65 or Over

Multiply the number in box 8 on the front of your return by $2,100 and enter the result.

14

Arizona Form 140NR

Line 48 - Blind

Multiply the number in box 9 on the front of your return by $1,500 and enter the result.

Line 49 - Other Exemptions

NOTE: If you take an Other Exemption for an individual on

line 49 claim this individual for the dependent tax credit on line 59.

You must complete page 4, Part 2, to compute your allowable Other Exemptions, on line 49. Be sure to enter the number of individuals listed in Part 2 in the box, 49E, on line 49.

You may take an exemption in the amount of $2,300 for each of the following individuals.

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.In 2020, 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.

2.In 2020, you paid more than $800 for either Arizona home health care or other medical costs for the person.

If both 1 and 2 apply to the same person, you are limited to only one exemption of $2,300 for that person.

NOTE: If a taxpayer’s 65th birthday was January 1, 2021

(born 1/1/1956), that person would be considered to be age

65 at the end of 2020 for federal income tax purposes and likewise for Arizona income tax purposes.

A stillborn child if the following apply:

1.The stillbirth occurred during 2020.

2.You received a certificate of birth resulting in stillbirth from the Arizona Department of Health Services.

3.The child would have otherwise been a member of your household.

Enter the following in columns (a) through (d):

a)The individual’s first and last 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 individual’s social security number. If you are claiming an exemption for a stillborn child, enter the certificate number from the certificate of birth resulting in stillbirth.

c)For those individuals age 65 or over:

Check box C1 if 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 during the taxable year;

Check box C2 if you paid more than $800 for either Arizona home health care or other medical costs for the person during the taxable year.

If you check both box C1 and box C2 for the same individual, you are limited to only one exemption of $2,300 for that individual.

(d)Check this box if claiming an exemptions for a stillborn child.

Enter the total number of exemptions in box 49E on line 49.

You may lose the exemption if you do not furnish this information.

Multiply the number in box 49E by $2,300 and enter the result.

Line 50 - Total Exemptions

Add lines 47, 48, and 49 and enter the total.

Line 51 - Prorated Exemptions

Multiply the amount on line 50 by your Arizona income ratio from line 27 and enter the result.

For Active Duty Military Personnel Only: If you were on

active duty in Arizona during 2020, but you were a resident of another state, you must prorate these exemptions.

Line 52 - Arizona Adjusted Gross Income

Subtract line 51 from line 46. If less than zero, enter “0”.

Figuring Your Tax

Line 53 – Itemized Deductions or Standard Deductions

You must decide whether to take the standard deduction or to itemize your deductions. Your Arizona income tax will be less if you take the larger of your standard deduction or your itemized deductions.

When you e-file, the software completes the math for you.

Your Itemized Deduction

You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return.

The itemized deductions allowed for Arizona purposes are those itemized deductions that are allowable under the IRC.

As an Arizona nonresident, you must prorate these deductions by the income ratio which your Arizona gross income is of your federal adjusted gross income.

To determine your Arizona itemized deductions, complete a federal Form 1040 Schedule A. Then complete the Arizona Form 140NR Schedule A(NR). If you itemize deductions, check box 53I.

NOTE: If you itemize, you must include a copy of your federal

Schedule A and your Arizona Schedule A(NR) with your Arizona return.

15

Arizona Form 140NR

Your Standard Deduction

CAUTION: You must prorate the standard deduction.

Nonresident individuals, who claim the standard deduction, must prorate the deduction by the income ratio which the taxpayer’s Arizona gross income is of the taxpayer’s federal adjusted gross income.

This will in effect prorate the standard deduction between income taxable to Arizona and income not taxable to Arizona and allow only that portion of the deduction allocable to income taxable to Arizona. If you take the standard deduction, check box 53S and complete the following worksheet.

 

Standard Deduction Chart

 

If your filing status is:

Your standard deduction

 

prior to prorating is:

 

 

Single

$12,400

Married filing separate

$12,400

Married filing joint

$24,800

Head of household

$18,650

 

Standard Deduction Worksheet

 

 

1.

Amount from the standard

 

 

 

 

 

 

 

deduction chart. Enter the amount

 

 

 

 

 

 

 

shown for your filing status.

$

 

 

.00

2.

Enter your Arizona income ratio

 

 

 

 

 

 

 

from Form 140NR, page 1, line 27.

 

 

.

 

 

 

 

 

 

 

 

 

 

3.

Multiply line 1 by the ratio on line

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Enter the result here and on

 

 

 

 

 

 

 

Form 140NR, page 2, line 53.

$

 

 

.00

Line 54 - Increased Standard Deduction for Charitable Contributions

A taxpayer may increase the allowable standard deduction amount equal to 25% (.25) of the total amount of a taxpayers charitable deductions that would have been allowed if the taxpayer elected to claim itemized deductions.

To claim the increased standard deduction, you must complete Form 140NR, page 3, and include the completed page with your tax return, when filed.

Be sure to check box 54C on line 54. If you do not check this box and include a completed page 3 with your tax return, you may be denied the increased standard deduction.

Line 55 - Arizona Taxable Income

Subtract lines 53 and 54 from line 52 and enter the difference. If less than zero, enter zero “0.” Use this amount to calculate your tax using Tax Table X or Y.

Line 56 - Tax Amount

Enter the tax from Tax Table X or Y.

Line 57 - Tax from Recapture of Credits from Arizona Form 301

Enter the amount of tax due from recapture of credits from Arizona Form 301, Part 2, line 31.

Line 58 - Subtotal of Tax

Add lines 56 and 57 and enter the total.

Line 59 - Dependent Tax Credit

NOTE: If you claim an individual for the dependent tax credit

on line 59 you cannot take an exemption for the same individual as an Other Exemption on line 49.

For taxable years beginning from and after December 31, 2018, taxpayers may claim a nonrefundable Dependent Tax Credit for certain qualifying dependents.

For the purpose of the dependent tax credit, “dependent” means an individual that qualifies as a dependent for federal purposes. The tax credit is equal to:

$100 for each qualifying dependent who is under 17 years of age at the end of the taxable year.

$25 for each qualifying dependent who is at least 17 years of at age at the end of the taxable year.

Nonresidents are required to apportion their Dependent Tax Credit by the Arizona income tax ratio computed on page 1, line 27.

The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 25) is more than $200,000; and for married taxpayers filing a joint return whose federal adjusted gross income is more than $400,000.

Complete the following tables to compute your credit.

Table I

 

(a)

(b)

(c)

 

(d)

 

 

 

Credit

 

Multiply

 

 

 

amount

 

column (b) by

 

 

 

 

 

column (c)

1.

Enter number of

 

 

 

 

dependents from

 

 

 

 

page 1, box 10a….

$ 100

$

.00

2.

Enter number of

 

 

 

 

dependents from

 

 

 

 

page 1, box 10b….

$ 25

$

.00

3.

Credit amount before adjustment. Add

 

 

 

lines 1 and 2.

Enter total in column (d).

$

.00

4.

Enter your Arizona income ratio from

 

.

 

page 1, line 27………………………….

 

5.

Multiply line 3 by the ratio on line 4.

 

 

 

Enter the result here.

 

$

.00

 

 

 

 

All taxpayers go to Table II on page 17.

16

Arizona Form 140NR

Table II

If your filing status is single, married filing

 

 

 

 

 

separate, or head of household: is your

 

Yes

 

No

federal adjusted gross income on page 1,

 

 

 

 

 

 

 

 

 

 

line 25, more than $200,000?

 

 

 

 

 

 

 

 

 

 

If your filing status is married filing joint: is

 

Yes

 

No

your federal adjusted gross income on page

 

 

 

 

 

 

 

 

 

 

1, line 25, more than $400,000?

 

 

 

 

 

 

 

 

 

 

If you answered “No”, you are not required to reduce the amount of credit computed in Table I.

Enter the amount From Table I, line 5 on page 2, line 59.

If you answered “Yes”, you are required to reduce the amount of credit computed in Table I.

Complete Table III or Table IV.

Table III

2020 Adjusted Dependent Tax Credit

For filing status: single, married filing separate, or

head of household

1.

Enter your federal adjusted gross income

 

 

 

from page 1, line 25…………………….

$

.00

2.

Federal adjusted gross income limit…...

$

200,000.00

3.

Subtract line 2 from line 1. Enter the

 

 

 

difference………………………………

$

.00

If the difference is greater than $19,000,

 

 

‘STOP’ you cannot claim the dependent

 

 

tax credit.

 

 

4.

Enter amount from Table I, line 5,

 

 

 

column (d)……

$

.00

5.

Based on the amount on line 3, enter

 

 

 

the number from Table V. For example:

 

 

 

if line 3 is $1,500, enter .90

 

 

6.

Multiply line 4 by line 5. Enter the

 

 

 

result. Also, enter the amount on page 2,

 

 

 

line 59…………………………………..

$

.00

Table IV

2020 Adjusted Dependent Tax Credit

For filing status: married filing joint

1.

Enter your federal adjusted gross income

 

 

 

from page 1, line 25……………………

$

.00

2.

Federal adjusted gross income limit…...

$

400,000.00

3.

Subtract line 2 from line 1. Enter the

 

 

 

difference……………………………….

$

.00

If the difference is greater than $19,000,

 

 

‘STOP’ you cannot claim the dependent

 

 

tax credit.

 

 

4.

Enter amount from Table I, line 5,

 

 

 

column (d)………………………………

$

.00

5.

Based on the amount on line 3, enter

 

 

 

the number from Table V. For example:

 

 

 

if line 3 is $1,500, enter .90

 

 

6.

Multiply line 4 by line 5. Enter the

 

 

 

result. Also, enter the amount on page 2,

 

 

 

line 59…………………………………..

$

.00

Go to Table V, to determine the percentage to enter on line 5, of Table III or Table IV.

Table V

If the amount on

Enter

If the amount on

Enter on

line 3 from Table

on line 5

line 3 from Table

line 5

III or Table IV is:

 

III or Table IV is:

 

$ 1 – 1,000

.95

$ 10,001 – 11,000

.45

$ 1,001 – 2,000

.90

$ 11,001 – 12,000

.40

$ 2,001 – 3,000

.85

$ 12,001 – 13,000

.35

$ 3,001 – 4,000

.80

$ 13,001 – 14,000

.30

$ 4,001 – 5,000

.75

$ 14,001 – 15,000

.25

$ 5,001 – 6,000

.70

$ 15,001 – 16,000

.20

$ 6,001 – 7,000

.65

$ 16,001 – 17,000

.15

$ 7,001 – 8,000

.60

$ 17,001 – 18,000

.10

$ 8,001 – 9,000

.55

$ 18,001 – 19,000

.05

$ 9,001 – 10,000

.50

$ 19,001 and over

.00

Line 60 - Nonrefundable Credits from Arizona Form 301

Complete line 60 if you claim any of the following credits. Also, make sure that you include Arizona Form 301 and the appropriate credit form or forms with your return.

Military Reuse Zone Credit The military reuse zone credit expired. All credits for military reuse zones that were properly established can be carried forward for the respective five year carry forward period. See Form 306 for more information.

Credit for Increased Research Activities - Individuals

You may qualify for this credit if you incurred qualified research expenses for research conducted in Arizona. Use Form 308-I to figure this credit. Be sure to include only the nonrefundable portion on Form 140NR, line 61.

Credit for Taxes Paid to Another State or Country You may qualify for this credit if you paid tax to Arizona and another state or country on the same income. Use Form 309 to figure this credit.

Agricultural Water Conservation System Credit You may qualify for this credit if you incurred expenses to purchase and install an agricultural water conservation system in Arizona. Use Form 312 to figure this credit.

Pollution Control Credit You may qualify for this credit if you purchased depreciable property used in a trade or business to reduce or prevent pollution. Use Form 315 to figure this credit.

Credit for Solar Hot Water Heater Plumbing Stub Outs and Electric Vehicle Recharge Outlets The credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets has expired. All credits that were property established can be carried forward for the respective five year carry forward period.

Credit for Employment of TANF Recipients You may qualify for this credit if you employed TANF recipients during the taxable year. Use Form 320 to figure this credit.

Credit for Contributions to Qualifying Charitable Organizations You may qualify for this credit if you made contributions to qualifying charitable organizations. Use Form 321 to figure this credit.

17

Arizona Form 140NR

Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you paid certain fees to public schools in Arizona. Use Form 322 to figure this credit.

Credit for Contributions to Private School Tuition Organizations You may qualify for this credit if you made contributions to a school tuition organization that provides scholarships or grants to qualified schools. Use Form 323 to figure this credit.

Agricultural Pollution Control Equipment Credit You may qualify for this credit if you are involved in commercial agriculture and incurred expenses to purchase tangible personal property that is primarily used in your trade or business in Arizona to control or prevent pollution. Use Form 325 to figure this credit.

Credit for Donation of School Site You may qualify for this credit if you donated real property and improvements to a school district or a charter school for use as a school or as a site for the construction of a school. Use Form 331 to figure this credit.

Credit for Employment by a Healthy Forest Enterprise You may qualify for this credit if you had net increases in qualified employment positions in a healthy forest enterprise. Use Form 332 to figure this credit.

Credit for Employing National Guard Members You may qualify for this credit if you are an employer who has an employee that is a member of the Arizona National Guard if the employee is placed on active duty. Use Form 333 to figure this credit.

Credit for Business Contributions by an S Corporation to School Tuition Organizations - Individual S corporations that make qualifying contributions of $5,000 or more may pass- through the credit to its individual shareholders on a pro rata basis. See Form 335-I for more information.

Credit for Solar Energy Devices - Commercial or Industrial Applications This credit is available to taxpayers that install solar energy devices for commercial, industrial, or other nonresidential applications in Arizona. Use Form 336 to figure this credit.

Credit for Investment in Qualified Small Businesses

You may qualify for this credit if you made an investment in a qualified small business. Use Form 338 to figure this credit.

Credit for Donations to the Military Family Relief Fund You may qualify for this credit if you made a cash contribution to the Arizona Military Family Relief Fund during the taxable year. Use Form 340 to figure this credit.

Credit for Business Contributions by an S Corporation to School Tuition Organizations for Displaced Students or Students with Disabilities – Individual S corporations that make qualifying contributions of $5,000 or more may pass-through the credit to its individual shareholders on a pro rata basis. See Form 341-I for more information.

Renewable Energy Production Tax Credit You may qualify for this credit if you produced electricity using renewable energy resources. Use Form 343 to figure this credit.

Credit for New Employment For taxable years beginning from and after June 30, 2011, you may qualify for this credit if your business had a net increase in qualified employment positions. Use Form 345 to figure this credit.

Additional Credit for Increased Research Activities for Basic Research Payments You may qualify for this credit for qualified basic research payments for research conducted in Arizona. Approval by the Department of Revenue is required prior to claiming this credit. Use Form 346 to figure this credit.

Credit for Contributions to Certified School Tuition Organization (for the amounts that exceed the allowable credit on Arizona Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Form 323. Use Form 348 to figure this credit.

Credit for Renewable Energy Investment & Productions for Self-Consumption by International Operations Centers You may qualify for this tax credit if you made investment in new renewable energy facilities that produce energy for self-consumption using renewable energy resources if the power will be used primarily for an international operations center. Use Form 351 to figure this credit.

Credit for Contributions to Qualifying Foster Care Charitable Organizations You may qualify for this credit if you made contributions to qualifying foster care charitable organizations. Use Form 352 to figure this credit.

Compute your credit on the appropriate form. Then complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 61. The amount on line 60 cannot reduce your tax below zero. These credits are not refundable credits.

Include the completed Form 301 along with any supporting documents with your return.

Line 61 - Balance of Tax

Subtract line 59 and 60 from line 58. Enter the difference. If the sum of lines 59 and 60 is more than line 58, enter, “0”.

Totaling Payments and Refundable Credits

Line 62 - 2020 Arizona Income Tax Withheld

Enter the 2020 Arizona income tax withheld as shown on Form(s) W-2 from your employer. Do not include income taxes withheld by any other state. Include the Form(s) W-2 with your return.

Line 63 (Boxes a, b, and c) – 2020 Arizona Estimated Tax Payments including Amount Applied from 2019 Return; and Arizona Claim of Right

Use this line if you did one of the following:

made estimated income tax payments to Arizona for 2020;

applied any of your refund from your 2019 Arizona return to 2020 estimated taxes for Arizona; or

18

Arizona Form 140NR

recomputed a prior year’s tax under Arizona’s Claim of Right provisions.

You must also complete and include the Arizona Claim of Right - Individual form(s) with your income tax return. If you fail to complete and include the form(s), the amount of your claim may be denied. The form is available on the department’s website.

Box 63a: Enter the total amount of estimated taxes paid and/or applied to your 2020 taxes.

NOTE: If you are married and made joint Arizona estimated

payments for 2020, but are filing separate 2020 Arizona income tax returns, see the department’s ruling ITR 02-3, Allocating

Joint Estimated Payments to Separate Returns.

Box 63b: Enter the amount from your Arizona Claim of Right

-Individual form, line 8.

If you completed more than one Claim of Right form for the current taxable year, add all amounts on line 8 and enter the total in box 64b.

NOTE: For more information on Arizona’s 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.

Line 63c: Add the amounts in box 63a and box 63b and enter the total on line 63c.

Line 64 - 2020 Arizona Extension Payment (Arizona Form 204)

Use this line to report the payment you sent with your extension request or the electronic extension payment you made using www.AZTaxes.gov.

Line 65 - Other Refundable Credits

Enter the total of refundable credits you are claiming from any of the following:

Credit for Increased Research Activities - Individuals, (Form 308-I)

Credit for Qualified Facilities (Form 349)

If you enter an amount on this line, be sure you check the box or boxes to show which credit(s) you are claiming. Also, be sure to include the credit form(s) with your return.

Credit for Increased Research Activities - Individuals (Form 308-I)

A portion of this credit may be refundable. You may qualify for the refundable increased research activities credit if you incurred qualified research expenses for research conducted in Arizona. For more information about this credit, and to see whether you may claim a refund of this credit, see Arizona Form 308-I.

You must include a copy of your “Certificate of Qualification” from the Arizona Commerce Authority (ACA), Form 301, and Form 308-I with your return to claim this credit.

If you are claiming a refund of the increased research activities credit from Form 308-I, enter the amount from Form 308-I, Part 5, line 32.

Credit for Qualified Facilities (Form 349)

You may qualify for the refundable qualified facilities credit if you expanded or located a qualified facility in Arizona. This credit is refundable in five equal installments. Pre-approval and post-approval are required through the ACA. For more information, see Arizona Form 349.

You must include a copy of your “Certificate of Qualification” from the ACA and Form 349 with your tax return to claim this credit. If you are claiming a refund of the qualified facilities credit from Form 349, enter the amount from Form 349, Part 8, line 20.

If you are claiming more than one of the refundable tax credits, check the appropriate boxes and add the amounts from the credit forms together and enter the total on line 65. You may use the table to figure the amount to enter on line 65.

2020 - Refundable Credit Worksheet

1.Enter the refundable credit from Form 308-I, Part 5, line 32.

2.Enter the refundable credit from Form 349, Part 8, line 20.

3.Add the amounts on lines 1 and 2. Enter the total here and on line 65.

Line 66 - Total Payments and Refundable Credits

Line 66 is the total payments and refundable credits claimed. Add lines 62 through 65 and enter the total.

Figuring Your Tax Due or Overpayment

Line 67 - Tax Due

If line 61 is more than line 66, you have tax due. Subtract line 66 from line 61 and enter the amount of tax due. Skip lines 68, 69, and 70.

Line 68 - Overpayment

If line 66 is more than line 61, you have an overpayment. Subtract line 61 from line 66 and enter the difference. Complete lines 69 and 70.

Line 69 - Amount of Line 68 to Apply to 2021 Estimated Tax

If you want all or part of your overpayment applied to next year’s Arizona estimated taxes, enter that amount on line 69.

NOTE: If you apply any of the amount shown on line 68 to

2021, you cannot use that amount to pay any tax that is later

found to be due for 2020. You also may not claim a refund for that amount until you file your 2021 return.

Line 70 - Balance of Overpayment

Subtract line 69 from line 68 to determine your overpayment balance before voluntary gifts and any estimated payment penalty.

19

Arizona Form 140NR

Making Voluntary Gifts

You can make voluntary gifts to each of the funds shown below. A gift will reduce your refund or increase the amount due with your return.

NOTE: If you make a gift, you cannot change the amount of that gift later on an amended return.

Line 71 - Solutions Teams Assigned to Schools Fund

You may give some or all of your refund to the Solutions Teams Assigned to Schools Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 71.

Gifts go to the Arizona Assistance for Education Fund. The Arizona Board of Education will distribute money to the Arizona Department of Education to fund solutions teams assigned to schools.

Line 72 - Arizona Wildlife Fund

You may give some or all of your refund to the Arizona Wildlife Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 72.

Your gift to the Arizona Wildlife Fund helps protect wildlife in the state. Many species like bald eagles, Apache trout and black-footed ferrets benefit from your gifts to this fund. Gifts are also used to improve areas for watching wildlife statewide.

Line 73 - Child Abuse Prevention Fund

You may give some or all of your refund to the Arizona Child Abuse Prevention Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 73.

Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs.

Line 74 - Domestic Violence Services Fund

You may give some or all of your refund to the Domestic Violence Services Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 74.

Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence.

Line 75 - Political Gift

You may give some or all of your refund to a political party. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 75. If you donated to a political party, complete line 82. Gifts go to one of the following political parties:

Democratic

Libertarian

Republican

Line 76 - Neighbors Helping Neighbors Fund

You may give some or all of your refund to the Neighbors Helping Neighbors Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 76.

Gifts go to the Neighbors Helping Neighbors Fund. This fund provides eligible recipients with emergency aid in paying utility bills, conserving energy and weatherization.

Line 77 - Special Olympics Fund

You may give some or all of your refund to the Special Olympics Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 77.

Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics.

Line 78 - Veterans’ Donations Fund

You may give some or all of your refund to the Veterans’ Donations Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 78.

Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona.

Line 79 - I Didn’t Pay Enough Fund

You may give some or all of your refund to the I Didn’t Pay Enough Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 79.

Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund.

Line 80 - Sustainable State Parks and Roads Fund

You may give some or all of your refund to the Sustainable State Parks and Roads Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 80.

Gifts that you make to the Sustainable State Parks and Roads Fund will aid the state to operate, maintain and make capital improvements to buildings, roads, parking lots, highway entrances and any related structure used to operate state parks.

Line 81 – Spaying and Neutering of Animals Fund

You may give some or all of your refund to the Spaying and Neutering of Animals Fund. You may also give more than your entire refund. If you send in additional money with your return, include that amount on line 87. Enter the amount you want to donate on line 81

Gifts that you make to the Spaying and Neutering of Animals Fund will help to reduce pet overpopulation by sterilizing, at minimal or no cost, dogs and cats in this state, including those that are impounded and sterilized..

20

Arizona Form 140NR

Line 82 - Political Party

If you entered an amount on line 75, check the box for the political party to which you wish to give. Select only one party. If you do not select a political party, the department will return the amount on line 75.

Line 83 - Estimated Payment Penalty

You must have made Arizona estimated income tax payments during 2020 if:

 

 

AND

 

AND

 

Your Arizona

Your Arizona

Your filing status is:

gross income

gross income

 

for 2019 was

for 2020 was

 

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

 

 

 

 

 

NOTE: Do not complete Arizona Form 221, Underpayment of

Estimated Tax by Individuals, if the amount on Form 140NR,

line 62, is more than the amount on Form 140NR, line 61.

An individual who fails to make the required estimated payments is subject to penalty on any estimated tax payment that is late or underpaid.

Complete and include Form 221 to determine if any penalty is due. Enter the total penalty from Form 221.

If you report as a farmer or fisherman for federal purposes,

you were not required to make estimated payments during 2020 if the following apply:

1.You are a calendar year filer. You file your Arizona return by March 1, 2021. You pay in full the amount stated on your return as owed.

2.You are a fiscal year filer. You file your Arizona return by the first day of the third month after the end of your fiscal year. You pay in full the amount stated on your return as owed.

If the above applies, check box 842 on line 84 and do not complete Form 221.

Line 84 - Box 841 through Box 843

Box 841: check if any of the following applies to you.

1.You checked the box on line 1 of Form 221.

2.You completed the annualized income worksheet on Form 221.

3.You elected to be treated as a nonresident alien on your federal income tax return. You made three estimated payment installments. Your first installment equaled 50% of the total of all of your required installments.

Box 842: check if you are an individual who for federal purposes reports as a farmer or fisherman.

Box 843: check if you completed and are including Form 221.

Line 85 -

Add lines 71 through 81 and 83. Enter the total

Figuring Your Refund or Amount Owed

You can get your refund quicker when you e-file and use direct deposit.

Line 86 - Refund

Subtract line 85 from line 70. Enter your refund on line 86 and skip line 87. If less than zero, enter amount owed on line 87.

If you owe money to any Arizona state agency, court, county, incorporated city or town and certain federal agencies, your refund may go to pay some of the debt. If so, the department will let you know by letter.

TAX TIP: If you change your address before you get your

refund, let the department know. Include your SSN in your

letter. Write to:

Refund Desk

Arizona Department of Revenue

PO Box 29216, Phoenix, AZ 85038-9216

Direct Deposit of Refund

Complete the direct deposit line if you want us to directly deposit the amount shown on line 87 into your account at a bank or other financial institution (such as a mutual fund, brokerage firm or credit union) instead of sending you a check.

NOTE: Check the box on line 86A if the direct deposit will

ultimately be placed in a foreign account. If you check box

86A, do not enter your routing or account numbers.

If this box is checked, we will not direct deposit your refund. We will mail you a check instead.

Why Use Direct Deposit?

You will get your refund fast - even faster if you e-file!

Payment is more secure

There is no check to get lost.

It is more convenient.

No trip to the bank to deposit your check.

It saves tax dollars. A refund by direct deposit costs less to process than a check.

NOTE: We are not responsible for a lost refund if you enter the

wrong account information.

Check with your financial institution to get the correct routing

and account numbers and to make sure your direct deposit will be accepted.

21

Arizona Form 140NR

Routing Number

MAKE SURE YOU ENTER THE CORRECT ROUTING NUMBER.

The routing number must be nine digits. The first 2 digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check will be mailed instead. On the sample check, the routing number is 250250025.

Your check may state that it is payable through a financial institution different from the one at which you have your checking account. If so, do not use the routing number on that check. Instead, contact your financial institution for the correct routing number to enter.

Account Number

MAKE SURE YOU ENTER THE CORRECT ACCOUNT NUMBER.

The account number can be up to 17 characters (both numbers and letters). DO NOT include hyphens, spaces, or special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check, the account number is 20202086. Be sure not to include the check number.

NOTE: If the direct deposit is rejected, a check will be mailed instead.

Line 87 - Amount Owed

Add lines 67 and 85. Enter the amount you owe on line 87. If you are making voluntary gifts on lines 71 through 81 in excess of your overpayment, enter the difference on line 87. You may pay only with a check, electronic check, money order, or credit card.

Check or money order

NOTE: Include your check or money order with your return. Please do not send cash.

Make your check payable to Arizona Department of Revenue. Write your SSN and tax year on the front of your check or money order. The department cannot accept checks or money orders in foreign currency. You must make payment in U.S. dollars. It may take 2-3 weeks for your payment to process.

The Department of Revenue may charge you $50 for a check returned unpaid by your financial institution.

Electronic payment from your checking or savings account

You can make an electronic payment from your checking or savings account to pay your balance due for 2020. There is no fee to use this method. To make an electronic payment, go to www.AZTaxes.gov and click on the “Make a Payment” link.

Be sure to enter the correct routing number and account number for your checking or savings account. You will be charged a $50 NSF (non-sufficient funds) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct routing and account numbers.

The “E-Check” option in the “Payment Method” drop-down box will debit the amount from the checking or savings account that you specify. If you make an electronic payment from your checking or savings account, you will receive a confirmation number. Please keep this confirmation number as proof of

payment.

NOTE: You may not make an electronic payment from your

checking or savings account if the payment will ultimately be

coming from a foreign account. In this case, you must pay by check or money order.

Credit card payment

You can pay with your American Express, Discover, Visa, or MasterCard. Go to www.AZTaxes.gov and click on the “Make a Payment” link and choose the credit card option. This will take you to a third party vendor site (provider). The provider will charge you a convenience fee based on the amount of your tax payment. The provider will tell you what the fee is during the transaction; you will have the option to continue or cancel the transaction.

If you complete the credit card transaction, you will receive a confirmation number. Please keep this confirmation number

as proof of payment.

Installment Payments

If you cannot pay the full amount shown on line 87 when you file, you may request to make monthly installment payments. Complete Arizona Form 140-IA and mail the completed form to the address on the Form 140-IA. Do not mail Form 140-IA with your income tax return. You may obtain Arizona Form 140-IA from our website.

If you cannot pay the full amount shown on line 87, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2021. To limit the interest and penalty charges pay as much of the tax as possible when you file your return.

Sign Your Return

You must sign your return. If married filing a joint return, both you and your spouse must sign even if only one had income. Form 140NR is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return.

22

Arizona Form 140NR

Instructions Before Mailing

DO NOT STAPLE YOUR RETURN. DO NOT STAPLE ANY SCHEDULES, DOCUMENTS OR PAYMENT TO YOUR RETURN.

Make sure your SSN is on your return.

Be sure you enter your daytime telephone number in the space provided on the front of your return.

Check to make sure that your math is correct. A math error can cause delays in processing your return.

Check the boxes to make sure you filled in all required boxes.

If you requested a filing extension, make sure that you check box 82F (above your name) on page 1 of the return.

Sign your return and have your spouse sign, if filing jointly.

Write your SSN and tax year on the front of your check or money order. Include your payment with your return.

Do not include correspondence with your return.

Mailing Your Return

If you are mailing your return, be sure to include Form 140NR, pages 1 and 2 and any other required forms. Place pages in the following order:

Copy of other State or Country return (if claiming Credit 309)

Arizona Claim of Right

Arizona Schedule A(NR)

Copy of federal 1040 Schedule A

Nonrefundable Credit Forms

Credit Forms 308-I, 349 (if required)

Form 301 (if required)

Form 140NR, page 5 (if required) required)

Form 140NR, page 4 (if required)

Form 140NR, page 3 (if required)

Form 140NR, pages 1 and 2

Form 203 (if required)

Form 131 (if required)

If mailing more than one tax return, please use separate envelopes for each return.

If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including in with your return. Keep the copies for your records. Be sure that you mail the original and not a copy.

Include Form(s) W-2, W-2G, 1099-R, 1099-NEC, and 1099-G, after the last page of your return only if these forms show Arizona income tax withholding.

Where Should I Mail My Return?

If you are including a payment with this return, mail the return to:

Arizona Department of Revenue PO Box 52016

Phoenix, AZ 85072-2016

If you are expecting a refund, or owe no tax, or owe tax but are not including a payment, mail the return to:

Arizona Department of Revenue

PO Box 52138

Phoenix, AZ 85072-2138

Make sure you put enough postage on the envelope

The U.S. Post Office or United States mail service must postmark your return or extension request by midnight April 15, 2020.

The term "United States mail" includes any private delivery service designated by the United States Secretary of the Treasury pursuant to IRC § 7502(f) and the term “postmark" includes any date recorded or marked by any such designated delivery service.

An income tax return that is mailed to the department is timely filed if it is delivered on or before its due date. Additionally, if the envelope or wrapper containing the return sent through the United States mail bears a postmark of the United States mail and that tax return is delivered to the department after its due date that return will be considered timely filed if all of the following apply:

1.The return was deposited in an official depository of the United States mail;

2.The date of the postmark is no later than the due date;

3.The return was properly addressed; and

4.The return had proper postage.

If the envelope or wrapper containing a return sent through the United States mail bears a private meter postmark made by other than the United States mail, the return is treated as timely filed if both of the following apply:

1.The private meter postmark bears a date on or before the due date for filing; and

2.The return is received no later than the time it would ordinarily have been received from the same point of origin by the same class of U.S. postage. If the return is

23

Arizona Form 140NR

received by the department within five business days of the private meter postmark date the department will consider this requirement satisfied.

You may also use certain private delivery services designated by the IRS to meet the “timely mailing as timely filed” rule. For more information, see the department’s ruling, GTR 16-1, Timely Filing of Income or Withholding Tax Returns Through the United States Mail.

How Long to Keep Your Return

You must keep your records as long as they may be needed for the administration of any provision of Arizona tax law. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your return to claim a credit or refund or the department can assess additional tax. A period of limitations is the limited time after which no legal action can be brought. Usually, this is four years from the date the return was due or filed.

In some cases, the limitation period is longer than four years. The period is six years from when you file a return if you underreport the income shown on that return by more than 25%.

The department can bring an action at any time if a return is false or fraudulent, or you do not file a return. To find out more about what records you should keep, see federal Publication 552.

Where’s My Refund?

You can check on your refund by visiting www.azdor.gov or www.AZTaxes.gov and clicking on “Where’s my refund?” or you may call one of the numbers listed on page 1 of these instructions. Before you call, be sure to have a copy of your 2020 tax return on hand. You will need to know your SSN, your filing status, and your 5-digit ZIP Code.

Contacting the Department

Your tax information on file with the department is confidential. If you want the department to discuss your tax matters with someone other than yourself, you must authorize the department to release confidential information to that person.

You may use Arizona Form 285 to authorize the department to release confidential information to your appointee. See Form 285 for details.

24

Arizona Form 140NR

Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011

2020 Original return

2020 Amended return

IMPORTANT

As a nonresident, you may include in your computation only net long-term capital gains from qualifying assets acquired from Arizona sources.

If you cannot determine the acquisition date of an asset, including mutual funds, the long-term capital gain from that asset does not qualify for the allowable subtraction. For the purpose of the allowable subtraction, these assets are considered to have been acquired before January 1, 2012.

An asset acquired by gift or inheritance is considered acquired on the date if was acquired by gift-giver or the deceased individual.

If you receive form(s) 165 Schedule K-1 from a partnership,

120S

Schedule

K-1

from

an

 

S corporation , or 141AZ Schedule K-1 from an estate or trust, be sure to include those qualifying net

 

long-term capital gain amounts in you computation.

 

 

 

 

 

 

 

 

 

 

Do not include any short-term capital gain or (loss) in this worksheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

Total Net Long-Term Capital Gain or (loss) reported on federal Form 1040 and

 

 

 

 

 

 

 

 

included in federal adjusted gross income…………….…………………………………………………..

$

 

00

 

 

 

 

2.

Enter the amount included on Arizona Form 140NR, line 38, from

 

 

 

 

 

 

 

 

 

 

net long-term capital gain derived from investment in qualified

 

 

 

 

 

 

 

 

 

 

small business………………………………………………………………………………..

$

00

 

 

 

 

 

 

 

3.

Enter the amount included on Arizona Form 140NR, line 39, from

 

 

 

 

 

 

 

 

 

 

net long-term capital gain derived from exchange of one kind of

 

 

 

 

 

 

 

 

 

 

legal tender for another kind of legal tender…………………………………

$

00

 

 

 

 

 

 

 

4.

Enter the amount included on Form 140NR, line 30, for net long-

 

 

 

 

 

 

 

 

 

 

term capital LOSS derived from exchange of one kind of legal tender

 

 

 

 

 

 

 

 

 

 

for another kind of legal tender………………………………………….

$

00

 

 

 

 

 

 

 

5.

Line 1 minus (line 2 + line 3) plus line 4………………………………………………………………………

$

 

00

 

 

 

 

6.

Net long-term capital gain or (loss) from assets acquired before 12/1/2012………………………………………….

$

 

00

7.

Net long-term capital gain from assets acquired after 12/31/2011………………………………………………………..

$

 

00

8.

Allowable subtraction for net long-term capital gain from assets acquired after December 31, 2011:

 

 

 

 

 

Multiply line 7 by 25% and enter the difference…………………………………………………………………………………….

$

 

00

If the amount on line 8 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140PY, line 37.

If the amount on line 8 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140PY, line 37.

25

Arizona Form 140NR

How to Complete a Composite Nonresident Personal Income Tax Return

Do You Qualify to File a Composite Nonresident Return?

For a list of qualifications and additional filing information, see the department’s ruling, ITR 16-2, Composite Individual Income Tax Returns.

If you are a Partnership or an S corporation and qualify to file an Arizona composite return on behalf of your nonresident individual partners or nonresident individual shareholders, follow the instructions below to complete a composite nonresident personal income tax return on Form 140NR.

REMINDER: As required by ITR 16-2, a comprehensive

schedule for all members of the return must be included with

the composite tax return, when filed. See ITR 16-2 (page 4, item

#5) for a list of information the schedule must contain.

The aggregate amounts of income and tax liability for all participating members are reported on page 2 of the return.

Entering Entity Name, Address, and Employer Identification Number

Lines 1, 2, and 3 –

Enter the entity’s name, address employer identification number (EIN). The entity filing the return should enter its EIN in place of the SSN. For example if the entity’s EIN is 98-7654321, the entity would enter its EIN as 987-65-4321.

Box 13 - Composite Return

Be sure to check box 13 on page 1 of the return.

Lines 14 through 54 -

Do not enter any information or amounts on lines 14 through 54. Go to line 55.

Line 55 - Arizona taxable Income

Enter the aggregate taxable income for all members of the composite return.

Lines 56 through 60 -

Skip lines 56 through 60. Go to line 61

Line 61 - Balance of Tax

Enter the aggregate tax due from all members of the composite return.

Line 62 – 2020 AZ income tax Withheld

Do not enter an amount on line 62.

NOTE: If any individual partner or shareholder had Arizona

income tax withheld from Arizona sourced income, that

individual must file his/her own nonresident tax return to report

the amount of income tax withheld.

In this case, the individual cannot be included in the composite return.

Line 63 – 2020 AZ Estimated Tax Payment

NOTE: If any individual partner or shareholder made an

estimated tax payment, that individual must file his/her own

nonresident tax return to claim that estimated tax payment.

In this case, the individual cannot be included in the composite return.

Complete this line if the filing entity did any of the following:

Made estimated income tax payments to Arizona for 2020.

Applied any of the refund from the 2019 Arizona composite nonresident return to 2020 estimated taxes for Arizona.

Line 64 - 2020 Extension Payment (Form 204)

Complete line to report a payment the filing entity sent with an extension request or the electronic extension payment the entity made using www.AZTaxes.gov.

Line 65 -

Do not enter an amount on line 65. Go to line 66.

Line 66 - Total Payments

Add lines 63 and 64. Enter the total.

Line 67 - Tax Due

If line 61 is more than line 66, there is tax due. Subtract line 66 from line 61 and enter the amount of tax due. Skip lines 68 through 86. Enter this amount on line 87.

Line 68 - Overpayment

If line 66 is more than line 61, there is an overpayment. Subtract line 61 from line 66 and enter the difference. Complete lines 69 and 70.

Line 69 - Amount of Line 68 to Apply to 2021 Estimated Tax

If the entity wants all or part of its overpayment applied to next year’s Arizona estimated taxes, enter that amount on line 69.

NOTE: If the entity applies any of the amount shown on line 68

to the 2021 composite return, the entity cannot use that amount

to pay any tax that is later found to be due for 2020. The entity

also may not claim a refund for that amount until the entity files its 2021 return.

Line 70 - Balance of Overpayment

Subtract line 69 from line 68 to determine the entity’s overpayment. Enter this amount on line 86.

Lines 71 through 85 -

Skip lines 71 through 85. Go to line 86.

Figuring the Refund or Amount Owed

Line 86 - Refund

Enter the overpayment from line 70 and skip line 87.

26

Arizona Form 140NR

Direct Deposit of Refund

Complete the direct deposit line if you want us to directly deposit the amount shown on line 86 into entity’s account at a bank or other financial institution (such as a mutual fund, brokerage firm or credit union) instead of sending you a check.

NOTE: Check the box on line 86A if the direct deposit will

ultimately be placed in a foreign account. If you check box

86A, do not enter your routing or account numbers. If this box

is checked, we will not direct deposit your refund. We will mail you a check instead.

Why Use Direct Deposit?

The entity will get its refund fast - even faster if you e-file!

Payment is more secure - there is no check to get lost.

It is more convenient - no trip to the bank to deposit the check.

It saves tax dollars. A refund by direct deposit costs less to process than a check.

NOTE: We are not responsible for a lost refund if you enter the

wrong account information. Check with your financial

institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted.

For more information completing the Direct Deposit information, see the instructions on pages 21 and 22.

Line 87 - Amount Owed

Enter the amount from line 67. You may pay only with a check, electronic check, money order, or credit card.

Check or money order

NOTE: Include the entity’s check or money order with the return. Please do not send cash.

Make the check payable to Arizona Department of Revenue. Write the EIN, tax year, and “Composite 140NR Return” on the front of the check or money order. The department cannot accept checks or money orders in foreign currency. The entity must make payment in U.S. dollars. It may take 2-3 weeks for the payment to process.

The Department of Revenue may charge the entity $50 for a check returned unpaid by your financial institution.

Electronic payment from your checking or savings account

The entity can make an electronic payment from the checking or savings account to pay the balance due for 2020. There is no fee to use this method. To make an electronic payment, go to www.AZTaxes.gov and click on the “Make a Payment” link.

Be sure to enter the correct routing number and account number for the checking or savings account. The entity will be charged a $50 NSF (non-sufficient funds) fee if it provides an incorrect routing number or an incorrect account number. Check with the entity’s financial institution to get the correct routing and account numbers.

The “E-Check” option in the “Payment Method” drop-down box will debit the amount from the checking or savings account that you specify. If you make an electronic payment from your checking or savings account, you will receive a confirmation number. Please keep this confirmation number as proof of

payment.

NOTE: You may not make an electronic payment from your

entity’s checking or savings account if the payment will

ultimately be coming from a foreign account. In this case, the entity must pay by check or money order.

Credit card payment

You can pay with an American Express, Discover, Visa, or MasterCard. Go to www.AZTaxes.gov and click on the “Make a Payment” link and choose the credit card option. This will take you to a third party vendor site (provider). The provider will charge you a convenience fee based on the amount of your tax payment. The provider will tell you what the fee is during the transaction; you will have the option to continue or cancel the transaction.

If you complete the credit card transaction, you will receive a confirmation number. Please keep this confirmation number

as proof of payment.

Sign Your Return

The composite return must be signed by the partners or corporate officers authorized to sign the partnership return or S corporation income tax return.

Mailing The Return

A composite return cannot be filed electronically. All composite returns, both original and amended, must be mailed to the address on the form.

Where Should I Mail the Return?

If you are including a payment with this return, mail the return to:

Arizona Department of Revenue PO Box 52016

Phoenix, AZ 85072-2016

If you are expecting a refund, or owe no tax, or owe tax but are not including a payment, mail the return to:

Arizona Department of Revenue

PO Box 52138

Phoenix, AZ 85072-2138

27

2020 Arizona Tax Tables X and Y

Full-Year Residents:

If your taxable income is less than $50,000, use the Optional Tax Tables to figure your tax. If your taxable income is $50,000 or more, you must use Tax Table X or Y to figure your tax.

Note: If your taxable income is $50,000 or more, you cannot use Form 140EZ or Form 140A to file for 2020. In this case, you must file using Form 140.

All Part-Year Residents and Nonresidents:

Use Tax Tables X or Y to figure your tax.

Table X – Use Table X if your filing status is Single or Married Filing Separate

 

(a)

(b)

 

(c)

(d)

 

(e)

 

(f)

 

If taxable

Taxable income.

Multiply

Enter the result

 

Subtract

 

Your tax.

 

income is:

 

the amount

 

 

 

 

 

 

 

Enter the amount

entered in

 

 

 

 

Round the

 

 

of your taxable

column (b)

 

 

 

 

difference and

 

 

income from

 

by

 

 

 

enter this amount

 

 

Form:

 

 

 

 

 

on your tax form:

Over

But not Over

∙ 140, line 45

 

 

 

 

 

140, line 46

 

 

∙ 140NR, line 55

 

 

 

 

 

∙ 140NR, line 56

 

 

∙ 140PY, line 55

 

 

 

 

 

∙ 140PY, line 56

$0

$27,272

 

X

.0259

=

-

$0

=

 

$27,272

$54,544

 

X

.0334

=

-

$205

=

 

$54,544

$163,632

 

X

.0417

=

-

$657

=

 

$163,632

and over

 

X

.0450

=

-

$1,197

=

 

Table Y – Use Table Y if your filing status is Married Filing Joint or Head of Household

 

(a)

(b)

 

(c)

(d)

 

(e)

 

(f)

 

If taxable

Taxable income.

Multiply

Enter the result

 

Subtract

 

Your tax.

 

income is:

 

the amount

 

 

 

 

 

 

 

Enter the amount

entered in

 

 

 

 

Round the

 

 

of your taxable

column (b)

 

 

 

 

difference and

 

 

income from

 

by

 

 

 

 

enter this amount

 

 

Form:

 

 

 

 

 

 

on your tax form:

Over

But not Over

∙ 140, line 45

 

 

 

 

 

 

∙ 140, line 46

 

 

∙ 140NR, line 55

 

 

 

 

 

 

∙ 140NR, line 56

 

 

∙ 140PY, line 55

 

 

 

 

 

 

∙ 140PY, line 56

$0

$54,544

 

X

.0259

=

-

$0

=

$54,544

$109,088

 

X

.0334

=

-

$409

=

$109,088

$327,263

 

X

.0417

=

-

$1,315

=

$327,263

and over

 

X

.0450

=

-

$2,394

=

YOU M AY QUALI FY TO FI LE YOUR FED ERAL AN D ARI ZON A I N D I V I D UAL I N COM E TAX RETURN S FOR FREE!!!

Go t o our w ebsit e at www .azdor.gov and

click on E- file Your Taxes for Free

found in t he I ndividual box

BE SURE TO USE WWW.AZDOR.GOV TO ACCESS YOUR PREFERRED SOFTWARE VENDOR TO ENSURE FREE FILING FOR YOUR FEDERAL AND STATE RETURNS.

www.azdor.gov

Do-It-Yourself using the Internet

 

 

 

 

 

 

Faster refunds when you E-File and select the Direct Deposit option!

Free Federal and State Tax Preparation for taxpayers who are:

Elderly

Americans with Disabilities

Low Income

For Locations, call 211

or go to

www.211arizona.org

DO YOU QUALIFY FOR AN ARIZONA TAX CREDIT?

You may claim the INCREASED EXCISE TAX CREDIT if:

you are an Arizona resident

you are not claimed as a dependent by any other taxpayer

your federal adjusted gross income was $ 25,000 or less ($12,500 if single)

you were not sentenced for at least 60 days of 2020 to a county, state or federal prison

Up to

$100

per household

ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST.

PHOENIX AZ 85007-2612

CONTENTS 140NR

CREDITS

 

Credits from Form 30 1

16-18

Credit for taxes paid to

 

another state or country

17

DEDUCTIONS

 

Item ized deductions

15

Standard deduction

16

EXEMPTIONS

 

Age 65 or over

6, 14

Blind

6, 15

Dependents

6, 16

FILING INFORMATION

 

Do you have to file

1

QUICK AND EASY ACCESS TO TAX HELP AND FORMS

PERSONAL COMPUTER

You may use a personal

computer and modem to get

 

 

the forms and information

 

 

you need at www.azdor.gov,

PHONE

 

including:

 

 

 

• Forms and Instructions

Phoenix

(602) 255-3381

Toll-free from

 

• Publications

 

area codes 520 and 928

(800) 352-4090

 

• Tax Rulings and Procedures

• Other General Tax Information

Estim ated tax

18

Filing extensions

3

Penalties and interest

3

When to file

3

Mailing your return

23

FILING STATUS

 

All filing statuses

5, 6

INCOME

 

Additions to incom e

9-11

Federal adjusted gross incom e

8

Subtractions from incom e

11-14

TAX TABLES

 

Tables X and Y

28

WALK-IN SERVICE

You may get forms and information at any of our offices. Due to COVID-19, ADOR’s in-person lobby services are by appointment only.

Visit azdor.gov for latest updates on lobby restrictions.

We have offices at the following locations:

Phoenix

1600 West Monroe Street

Phoenix, AZ 85007

Tucson

400 West Congress

Tucson, AZ 85701

Reasonable accommodations for any person with a disability can be made.

DID YOU KNOW?

Tax software does all the hard work for you! The software:

Calculates Tax

Does the Math

Selects Forms and Schedules

Makes Complex Returns Simple

Checks for Errors Before You File

E-Files the IRS and AZ Returns at the same time

Gives Proof of E-Filing

www.azdor.gov

FREE

 

 

E-FILE

For details & eligiblity

 

 

 

 

 

AVAILABLE

 

 

How to Edit 140Nr Form Online for Free

You could work with az 140nr easily with the help of our online tool for PDF editing. Our tool is consistently evolving to provide the very best user experience possible, and that's due to our commitment to continuous development and listening closely to testimonials. To start your journey, go through these basic steps:

Step 1: First of all, access the pdf editor by pressing the "Get Form Button" in the top section of this page.

Step 2: With our advanced PDF editor, you may do more than merely fill out forms. Try each of the functions and make your documents look high-quality with custom text added in, or modify the original input to excellence - all comes along with an ability to insert stunning graphics and sign it off.

This document requires particular info to be entered, hence make sure you take the time to provide exactly what is requested:

1. For starters, when filling out the az 140nr, beging with the page that has the next fields:

Stage number 1 in submitting arizona 140nr

2. Once your current task is complete, take the next step – fill out all of these fields - e m o c n, I a n o z i r A, s n o i t i d d A, R N m r o F, r e t f a s t n e m u c o d r e h, u d e h c s, Z A d n a, a r e d e f d e r i, FEDERAL, Amount from Federal Return, ARIZONA Source Amount Only, Check box if married and you are, who qualifies for relief under the, Gains or losses from federal, and Arizona income tax refunds with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

How to fill out arizona 140nr part 2

Always be really mindful when filling out u d e h c s and Amount from Federal Return, since this is the part where most people make some mistakes.

3. The following step should also be pretty straightforward, e g a p n o, t n o c, s n o i t c a r t b u S, a r e d e f d e r i, u q e r y n a e c a, Total net shortterm capital gain, Total Arizona sourced net capital, Subtotal Add lines and Enter, Total net longterm capital gain, Net longterm capital gain from, Net capital gain derived from, Recalculated Arizona depreciation, Partnership Income adjustment See, Subtract lines through from, and ADOR - these fields has to be completed here.

How one can complete arizona 140nr portion 3

4. All set to fill out the next portion! Here you will have all of these Your Name as shown on page , Your Social Security Number, Interest on US obligations such, Agricultural crops contributed to, Other Subtractions from Income, Age or over Multiply the number, Subtract lines and from line , Blind Multiply the number in box , Arizona adjusted gross income, a Compute the tax using amount, b Reserved b, Tax from recapture of credits, Subtotal of tax Add lines a and , Dependent Tax Credit See, and Nonrefundable credits from form blanks to complete.

arizona 140nr conclusion process explained (portion 4)

5. This last point to finish this form is essential. You need to fill out the appropriate fields, consisting of Balance of tax Subtract lines , AZ income tax withheld Add a, Claim of Right b, d n a, s t n e m y a P, a t o T, s t i d e r C e b a d n u f e R, r o e u D x a T, t n e m y a p r e v O, TAX DUE If line is larger than, OVERPAYMENT If line is larger, Amount of line to be applied to , Balance of overpayment Subtract, Voluntary Gifts to, and Child Abuse Prevention , prior to using the pdf. Failing to do it may lead to an incomplete and potentially incorrect form!

Filling out segment 5 in arizona 140nr

Step 3: Right after taking another look at your fields you've filled in, press "Done" and you're all set! After starting a7-day free trial account here, you'll be able to download az 140nr or send it via email directly. The document will also be at your disposal in your personal cabinet with your changes. We do not sell or share the information that you use while working with forms at our website.