Instructions For Arizona Form 140 - Resident Personal Income Tax Return

Form 140

credits. Call one of the numbers listed on the back cover if

Do not subtract any amount received from a qualified pension

any of the following apply.

plan that invests in U.S. Government obligations. Do not



subtract any amount received from an IRA that invests in

You are a qualified defense contractor that elected to

U.S. Government obligations. These amounts are not interest

amortize under Arizona Revised Statutes section 43-1024.

income. For details, see Arizona Department of Revenue



You sold or disposed of property that was held for the

Income Tax Rulings ITR 96-2 and ITR 96-3.

production of income and your basis was computed

under the Arizona Income Tax Act of 1954.

Line C19 - Exclusion for U.S. Government,



You claimed the environmental technology facility credit.

Arizona State or Local Government Pensions



You claimed the pollution control credit.

If you receive pension income from any of the sources listed



You claimed the recycling equipment credit.

below, subtract the amount you received or $2,500, whichever



You

claimed

the

agricultural

pollution

control

is less. Include only the amount you reported as income on

equipment credit.

your federal return. If both you and your spouse receive



You elected to amortize the basis of a pollution control

such pension income, each spouse may subtract the amount

device or the cost of a child care facility under Arizona

received or $2,500, whichever is less.

law in effect before 1990. You are still deducting

amortization or depreciation for that device or facility

Public

pensions

from

the

following

on your federal income tax return.

sources qualify for this subtraction.

Line B12 - Total Additions



The United States Government Service Retirement and

Disability Fund

Add lines B6 through B11. Enter the total on line B12 and



The United States Foreign Service Retirement and

on the front of your return on line 13.

Disability System

Subtractions From Income



Retired or retainer pay of the uniformed services of the

United States

You may only subtract those items for which statutory authority



Any other retirement system or plan established by

exists. Without such authority you cannot take a subtraction.

federal law

If you have any questions concerning subtractions from

income, call one of the numbers listed on the back cover.

NOTE: This applies only to those retirement plans

authorized and enacted into the U.S. Code. This does not

NOTE: You may not subtract any amount that is allocable

apply to a retirement plan that is only regulated by federal

to income excluded from your Arizona taxable income.

law (i.e., plans which must meet certain federal criteria to

be qualified plans).

Line C13 - Exemption: Age 65 or Over



Multiply the number in box 8 on the front of your return by

The Arizona State Retirement System



$2,100 and enter the result.

The Arizona State Retirement Plan



The Corrections Officer Retirement Plan

Line C14 - Exemption: Blind



The Public Safety Personnel Retirement System



Multiply the number in box 9 on the front of your return by

The Elected Officials' Retirement Plan

$1,500 and enter the result.



A retirement plan established for employees of a

Line C15 - Exemption: Dependents

county, city, or town in Arizona



An optional retirement program established by the Arizona

Multiply the number in box 10 on the front of your return by

Board of Regents under Arizona Revised Statutes

$2,300 and enter the result.



An optional retirement program established by an

Line C16 - Exemption: Qualifying Parents

Arizona community college district.

and Grandparents

NOTE: Public retirement pensions from states other than

Multiply the number in box 11 on the front of your return by

Arizona do not qualify for this subtraction.

$10,000 and enter the result.

Line C20 - Arizona Lottery Winnings

Line C17 - Total

Add lines C13 through C16 and enter the total. If you have

You may subtract up to $5,000 of winnings received in 2011

no other subtractions from income, skip lines C18 through

for Arizona lottery prizes.

C30 and enter this total on Form 140, page 1, line 14.

If you subtract Arizona lottery winnings here, you may have

Line C18 - Interest on U.S. Obligations

to adjust the amount of gambling losses claimed as an

itemized deduction. See instructions for Form 140 Schedule A,

Enter the amount of interest income from U.S. Government

Itemized Deduction Adjustments.

obligations included as income on your federal return. U.S.

Government obligations include obligations such as savings

Line C21 - U.S. Social Security Benefits or

bonds and treasury bills. You cannot deduct any interest or other

Railroad Retirement Benefits

related expenses incurred to purchase or carry the obligations. If

Arizona does not tax social security benefits received under

such expenses are included in your Arizona gross income,

Title II of the Social Security Act. Arizona does not tax railroad

you must reduce the subtraction by such expenses. If you are

itemizing deductions on your Arizona return, you must

retirement benefits received from the Railroad Retirement

exclude such expenses from the amount deducted.

Board under the Railroad Retirement Act. If you included

such social security or railroad retirement benefits as income

NOTE: Do not subtract interest earned on FNMA or GNMA

on your federal return, use line C21 to subtract this income.

bonds since this interest is taxable by Arizona. For details, see

the department's income tax ruling, ITR 06-1.

Instructions For Arizona Form 140 - Resident Personal Income Tax Return - 2011 Page 10

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