Instructions For Arizona Form 140nr - Nonresident Personal Income Tax Return

Arizona Form 140NR

2. The amount required to be repaid was subject to

Examples:

Arizona income tax in the year included in income.

Arizona

Federal

Arizona percentage

3. The amount required to be repaid during 2014 was more

Gross

Adjusted

than $3,000.

Income from

Gross Income

4. You took a deduction for the amount repaid on your

line 26

from line 25

2014 federal income tax return.

$ 7,500

$ 30,000

$7,500/30,000 = 25%

5. The deduction taken on your federal income tax return

$10,000

$ 9,000

$10,000/$9,000=111.1%

is reflected in your Arizona taxable income.

Taxpayer would enter

If the above apply, enter the amount deducted on your

100% on line 27

federal income tax return which is reflected in your Arizona

taxable income.



If Arizona gross income is positive (greater than zero),

For more information on the Arizona claim of right provisions,

and federal adjusted gross income is equal to or less

see the department’s income tax procedure, ITP 95-1.

than zero (negative), enter 100% on line 27.



D. Claim of Right Adjustment for Amounts Repaid

If Arizona gross income is equal to or less than zero

(negative), and federal adjusted gross income is

in Prior Taxable Years

positive, enter 0% on line 27.

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



If Arizona gross income and federal gross income are

1. During a year prior to 2014, you were required to repay

both negative, divide the Arizona amount by the federal

income held under a claim of right.

amount and enter the percentage on line 27.

The

2. You computed your tax for that prior year under

percentage cannot be more than 100%.

Arizona’s claim of right provisions.

3. A net operating loss or capital loss was established due

Additions to Income

to the repayment made in the prior year.

Line 28 - Total Depreciation Included in

4. You are entitled to take that net operating loss or capital

loss carryover into account when computing your 2014

Arizona Gross Income

Arizona taxable income.

Enter the amount of depreciation deducted on the federal

5. The amount of the loss carryover included in your

return that is included in Arizona gross income. If you make

Arizona gross income is more than the amount allowed

an entry here, you should also take a subtraction on line 37 for

to be taken into account for Arizona purposes.

allowable depreciation attributable to assets used in your

Enter the amount by which the loss carryover included in

Arizona business. See the instructions for line 37.

your Arizona gross income is more than the amount allowed

NOTE: You may take a subtraction, on line 38, for Arizona

for the taxable year under Arizona law.

bonus depreciation on assets placed in service during 2013.

E. Addition to S Corporation Income Due to Credits

For more information, see the department’s income tax

procedure, ITP 14-3.

Claimed

Shareholders of an S corporation who claim a credit passed

Line 29 - Other Additions to Income

through from an S corporation must make an addition to

Use line 29 if any of the special circumstances below apply.

income for the amount of expenses disallowed by reason of

Include your own schedule with your return, explaining any

claiming the credit.

amounts entered on line 29.

An S corporation that passes the following credits through to

A. Fiduciary Adjustment

its shareholders must notify each shareholder of his or her

A fiduciary uses Form 141AZ, Schedule K-1(NR), to report to

pro rata share of the adjustment. You must enter an amount

you your share of the fiduciary adjustment from the trust or

on this line when claiming any of the following credits.

estate. Line 5 of Form 141AZ, Schedule K-1(NR), shows your



share of the fiduciary adjustment from the estate or trust.

Environmental technology facility credit (Form 305)



Depending on your situation, you may either add (line 29) or

Agricultural water conservation system credit (Form 312)

subtract (line 46) this amount.



Pollution control credit (Form 315)

If the amount reported on line 5 of your Arizona Form



Credit for solar hot water heater plumbing stub outs and

141AZ, Schedule K-1(NR), is a positive number, enter that

electric vehicle recharge outlets (Form 319)

amount as an addition on line 29.



Credit for employment of TANF recipients (Form 320)

If the amount reported on line 5 of your Arizona Form



Agricultural pollution control equipment credit (Form 325)

141AZ, Schedule K-1(NR), is a negative number, enter that



Motion picture credits (Form 334)

amount as a subtraction from income on line 46.

F. Solar Hot Water Heater Plumbing Stub Outs and

B. Items Previously Deducted for Arizona Purposes

Electric Vehicle Recharge Outlet Expenses

Arizona statutes prohibit a taxpayer from deducting items

If you claim a credit for installing solar hot water heater

more than once. If your Arizona taxable income includes

plumbing stub outs or electric vehicle recharge outlets in a

items previously deducted for Arizona purposes, you must

dwelling you constructed (Form 319), you cannot deduct any

add such amounts to your Arizona gross income.

expenses for which you claim the credit. If you claim this

C. Claim of Right Adjustment for Amounts Repaid

credit, enter the amount of such expenses that you deducted

in 2014

on your federal return.

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

G. Wage Expense for Employers of TANF Recipients

1. During 2014, you were required to repay amounts held

If you claim a credit for employing TANF recipients (Form

under a claim of right.

320), you cannot deduct any wage expense for which you

Instructions For Arizona Form 140nr - Nonresident Personal Income Tax Return - 2014 Page 7

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