Form 140 - Schedule A - Itemized Deduction Adjustments Instruction

2011 Form 140 Schedule A Itemized Deduction Adjustments

Who Should Complete This Form?

Complete lines 3 through 6 as instructed on the form.

Line 7

You may itemize on your Arizona return, even if you do not

itemize on your federal return. But, to itemize on your Arizona

NOTE: Skip line 7 if you are not claiming a credit for interest

return, you must first complete a federal Schedule A. Use Form

paid on mortgage credit certificates on your federal return.

140, Schedule A, to adjust the amount shown on the federal

If you claimed this credit on your federal return (using Form

Schedule A. Complete Form 140, Schedule A, only if you are

8396), you may deduct the amount of mortgage interest you paid

making changes to the amount shown on the federal Schedule A.

in 2011 that is equal to the amount of that credit. Enter the

You must attach the federal Form 1040, Schedule A, to this

amount of that interest here.

form.

Lines 8 through 12

You must complete Form 140, Schedule A, only if any of the

NOTE: Skip lines 8 through 12 if you are not deducting

following items apply to you.

gambling losses.

You are deducting medical and dental expenses.

You may deduct wagering losses only to the extent of your

You are claiming a federal credit (from federal Form 8396)

wagering gains. You must complete lines 8 through 12 if both of

for interest paid on mortgage credit certificates.

the following apply:

You are deducting gambling losses while taking a

You took a subtraction for Arizona lottery winnings; and

subtraction for Arizona lottery winnings.

You are claiming a deduction for gambling losses.

Your deductions claimed on the federal Schedule A include

Complete lines 8 through 12 as instructed on the form.

expenses related to income not subject to Arizona tax.

Line 13

You are claiming an Arizona credit for any amount allowed

as a charitable contribution.

NOTE: Skip line 13 if you are not taking any credit for an

amount allowed as a charitable contribution.

If any of the above items apply to you, complete a federal Form

1040 Schedule A and then complete Form 140 Schedule A,

You cannot claim both a deduction and a credit for the same

Itemized Deduction Adjustments as instructed below.

charitable contributions.

Enter the amount of charitable

Do not complete Form 140, Schedule A, Itemized Deduction

contributions for which you are taking a credit.

Adjustments, if the above items do not apply to you. If you do

For Example:

not have to complete Form 140, Schedule A, Itemized Deduction

If you claimed a

For contributions

You must make an

Adjustments, enter the amount from federal Form 1040, Schedule

credit on Arizona

made to a:

entry here if you

A, on Form 140, page 1, line 16.

Form:

deducted the amount

Line-by-Line Instructions

321

Qualifying

contributed

itemized deduction on

Charity

Lines 1 through 6

federal Form 1040,

322

Public school

NOTE: Skip lines 1 through 6 if you are not deducting medical

Schedule A.

323

School tuition

and dental expenses.

organization

In most cases, the deduction allowed on the Arizona return will

If you claimed a private school tuition credit on your 2010 return

be larger than the deduction allowed on the federal return. On

for a contribution that you made during 2011 (see Arizona Form

your Arizona return, you do not have to reduce your medical

323), you must make this adjustment on your 2011 return, even

expenses by a percentage of your federal adjusted gross income.

though you claimed the credit on your 2010 return.

Complete lines 1 through 6 if you are deducting medical and

If you are claiming a credit on your 2011 return for a contribution

dental expenses. In most cases, you may deduct more medical

made during 2012 (see Arizona Form 323), you must make this

expenses on your Arizona return than you can deduct on your

adjustment on your 2012 return, even though you are claiming

federal return. Complete lines 1 through 6 to deduct those

the credit on your 2011 return.

expenses that were less than 7.5% of your federal adjusted gross

Line 14

income. Also complete lines 1 through 6 if you had an MSA.

You may not deduct any expense that relates to income not

Line 1

subject to Arizona tax. You must complete line 14 if your federal

Enter the total of your medical and dental expenses. Do not

Schedule A includes such expenses. Such expenses include:

include any expenses that were paid by insurance or other

Interest or other related expenses incurred to purchase or

sources. Do not reduce the amount you enter on line 1 by

carry U.S. obligations, when the income is not subject to

amounts paid from an MSA.

Arizona tax.

Do not include insurance premiums you paid through an

State taxes paid to other states for prior years if you were not

employer-sponsored health insurance plan (cafeteria plan)

an Arizona resident for that prior year.

unless your employer included the premiums in Box 1 of

Employee business expenses that relate to income not

your Form W-2. Also do not include any other medical and

subject to Arizona tax.

dental expenses paid by the plan unless your employer

included the amount paid in Box 1 of your Form(s) W-2. If

This list is not all-inclusive. There may be other items included

you are self-employed, do not include any amount that you

in your federal Schedule A that you cannot deduct on the Arizona

paid for health insurance that you deducted in computing

return.

your federal adjusted gross income.

Enter the amount of expenses deductible on federal Schedule A

For details about what types of expenses you may deduct, see

that are allocable to income not subject to Arizona income tax.

federal Form 1040, Schedule A.

Lines 15 through 21

Line 2

Complete lines 15 through 21 as instructed on the form.

Enter any amount of medical and dental expenses included on

line 1 that were paid from your MSA.

Form 140 - Schedule A - Itemized Deduction Adjustments Instruction - 2011

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