Arizona Form 141az - Arizona Fiduciary Income Tax Return

Arizona Form 141AZ

are more than 10 beneficiaries, include the amounts from the

You may designate $5 of the tax to go to the Clean Elections

additional schedule on line C11.

Fund and may also reduce the tax on line 16 by up to $5.

To make this designation, check box 17. If you checked box

Line C12 -

17 and the amount on Form 141AZ, page 1, line 16 is $10 or

In column (b), enter the fiduciary’s share of the federal

more, enter $5 on line 18. If the amount on line 16 is less than

distributable net income. In column (c), enter the percentage

$10, complete the following worksheet.

of the fiduciary’s share of federal distributable net income

computed in accordance with the documents or laws

Clean Elections Fund Tax Reduction Worksheet

controlling distribution of the estate or trust.

Enter the amount of tax from Form

Lines C13 through C16 -

141AZ, page 1, line 16.

.00

Complete lines C13 through C16 as instructed on the form.

If you checked box 17, enter $5.

.00

Schedule D - Federal Distributable Net

Balance of tax eligible for tax reduction.

Subtract line 2 from line 1. If less than

Income From Arizona Sources

zero, enter zero “0.”

.00

Schedule D is used to determine the net estate or trust

Tax reduction. Enter the smaller of line

income reportable to Arizona by nonresident beneficiaries.

3 or $5.

Also, enter this amount on

Use the information in Schedule D to complete Forms

Form 141AZ, page 1, line 18.

.00

141AZ, Schedule K-1(NR) for nonresident beneficiaries.

The fiduciary should complete Schedule D only if the trust

Line 20 - Credit for Taxes Paid to Another State or

or estate has Arizona nonresident beneficiaries. If the trust

Country

or estate does not have any nonresident beneficiaries, the

If both Arizona and another state or country considers an estate or

fiduciary should skip Schedule D.

trust to be a resident, Arizona will allow the estate or trust a tax

Lines D1 through D9 -

credit against the Arizona income tax liability for taxes paid to the

In column (b), enter an amount for each item from which

other state or country.

federal distributable net income is comprised. The total

The credit allowed on the Arizona fiduciary return is subject

entered on line D9, column (b), should equal the federal

to the following conditions:

distributable net income.

1. The credit is allowed only for the proportion of the taxes

In column (c), enter that portion of federal distributable net

paid to the other state or country that the income

income derived from Arizona sources. Such income includes

taxable to Arizona and also subject to tax in the other

Arizona rental and business income, and gains on the sale of

state or country bears to the entire income on which the

Arizona property.

taxes paid to the other state or country are imposed.

Schedule E - Questions

The credit cannot exceed the proportion of the tax

payable to Arizona that the income subject to tax in the

Answer the questions on lines E1 through E7.

other state or country and also taxable to Arizona bears

to the entire income that is taxable to Arizona.

Tax Computation

The credit is not allowed for taxes paid to the other state

or country on income from sources within Arizona.

Line 12 - Electing Small Business Trust (ESBT)

If claiming this tax credit, the estate or trust must attach the

Income

following items to the Arizona Form 141AZ:

Enter the federal taxable income of Electing Small Business

A copy of the other state or country's income tax return.

Trusts (ESBT) from the I.R.C. § 641(c) worksheet attached

to your Federal Form 1041. Attach a copy of the worksheet

A schedule showing how the credit was calculated.

to the Arizona return. A nonresident trust should enter the

Line 22 - Clean Elections Fund Tax Credit

amount of ESBT income received from the S corporation

that was derived from sources within Arizona.

NOTE: Amounts designated to the Clean Elections Fund on

page 1, line 18 do not qualify for the credit. Do not include

Line 13 -

those amounts here.

Add lines 11 and 12. Enter the total.

If the estate or trust contributed to the Citizens Clean

Line 14 - Income of a Trust Established as a Medical

Elections Fund, the estate or trust may claim a credit for

Savings Account

those contributions.

Arizona law provides a subtraction of income earned during

For 2011, the estate or trust may claim a credit for the

the taxable year by a trust established as a medical savings

following:

account. Subtract such amounts only to the extent the trust

•

included the income in Arizona gross income.

Donations the estate or trust made directly to the fund

during 2011.

Line 15 - Arizona Taxable Income

•

A donation the estate or trust made to the fund on its

Subtract line 14 from line 13. Enter the difference.

2010 income tax return filed in 2011.

Line 16 - Tax Amount

The estate or trust may not claim a credit on its 2011 return for a

Compute the tax on the amount on line 15 from the tax table

donation made to the fund on its 2011 return. If the estate or trust

on page 12 of these instructions.

donates to the fund with its 2011 return, the estate or trust may

Lines 17 and 18 - Clean Elections Fund Tax

claim a credit for that donation on its 2012 return.

Reduction

Complete the following worksheet to figure the credit.

Arizona Form 141az - Arizona Fiduciary Income Tax Return - 2011 Page 9

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