The Arizona Department of Revenue will follow the Internal Revenue Service (IRS) announcement regarding the start of the electronic filing season. Because Arizona electronic income tax returns are processed and accepted through the IRS first, Arizona’s electronic filing system for individual income tax returns is dependent upon the IRS' launch date. Remember, the starting point of the Arizona individual income tax return is the Federal Adjusted Gross Income.

Taxpayers can begin filing individual income tax returns through Free File partners and individual income tax returns will be sent to the IRS upon e-file season opening. Tax software companies also are accepting tax filings in advance of the IRS' launch date.

Please refer to the E-File Service page for details on the e-filing process.

Notice: For tax year 2023 and beyond, there are no optional or X&Y tax tables to post due to Arizona's flat tax rate of 2.5%.

Arizona Individual Income Tax Highlights

For details on conformity, click here .

Please ensure you download and open the form from your computer folder using Acrobat , as you will encounter issues when viewing and filling it out within your internet browser.

For technical assistance on fillable forms, see Forms Technical Information .

Category Form Number Title Individual 131 Claim for Refund on Behalf of Deceased Taxpayer Individual 140 Form 140 - Arizona Resident Personal Income Tax Booklet Individual 140 Form 140 - Optional Tax Tables Individual 140 Form 140 - Resident Personal Income Tax Form -- Fillable Individual 140 Form 140 - Resident Personal Income Tax Form -- Non-fillable Form Individual 140 Form 140 - X & Y Tables Individual 140 Schedule A Itemized Deduction Adjustments Form Individual 140A Form 140A - Arizona Resident Personal Income Tax Booklet Individual 140A Form 140A - Optional Tax Tables Individual 140A Form 140A - Resident Personal Income Tax (Short) Form -- Fillable Individual 140A Form 140A - Resident Personal Income Tax (Short) Form -- Non-fillable Individual 140ES Individual Estimated Tax Payment Booklet Individual, Payment Vouchers 140ES Individual Estimated Tax Payment Form Tax Credits Forms, Individual 140ET Credit for Increased Excise Taxes Individual 140EZ Form 140EZ - Arizona Resident Personal Income Tax Booklet Individual 140EZ Form 140EZ - Optional Tax Tables Individual 140EZ Form 140EZ - Resident Personal Income Tax (EZ Form) -- Fillable Individual 140EZ Form 140EZ - Resident Personal Income Tax Return (EZ Form) -- Non-fillable Form Individual 140NR Arizona Nonresident Personal Income Tax Booklet Individual 140NR Form 140NR - X & Y Tables Individual 140NR Nonresident Personal Income Tax Form -- Fillable Individual 140NR Nonresident Personal Income Tax Form--Non-fillable Individual 140NR Schedule A(NR) Itemized Deductions for Nonresidents Form Tax Credits Forms, Individual 140PTC Property Tax Refund (Credit) Claim Form -- Fillable Individual 140PTC Property Tax Refund (Credit) Claim Form -- Non-fillable Form

Arizona Resident Personal Income Tax Booklet

Please disregard the information provided in the worksheet's Note Section (Note #2 on Form 140; Note #3 on Forms 140NR, 140PY and 140X). The correct amount to enter on line 6C is the total amount of charitable contributions made in 2020 for which you are claiming a tax credit for the current tax year (2020) or prior tax year (2019).

Form Year Form Publish Date 2025 Download 2025 Form (PDF) 01/01/2026 2024 Download 2024 Form (PDF) 01/01/2025 2023 Download 2023 Form (PDF) 01/01/2024 2022 Download 2022 Form (PDF) 01/01/2023 2021 Download 2021 Form (PDF) 01/01/2022 2020 Download 2020 Form (PDF) 01/01/2021 2019 Download 2019 Form (PDF) 01/01/2020 2018 Download 2018 Form (PDF) 01/01/2019 2017 Download 2017 Form (PDF) 01/01/2018 2016 Download 2016 Form (PDF) 01/01/2017 2015 Download 2015 Form (PDF) 01/01/2016

Personal income tax return filed by resident taxpayers.

You may file Form 140 only if you (and your spouse, if married filing a joint return) are full year residents of Arizona. You must use Form 140 if any of the following apply:

Your Arizona taxable income is $50,000 or more, regardless of filing status

You are making adjustments to income

You itemize deductions

You claim nonrefundable tax credits other than the family tax credit, the credit for excise taxes, and/or the property tax credit or are required to recapture prior tax credit amounts (see form instructions for more information)

You are claiming estimated tax payments

Please ensure you download and open the form from your computer folder using Acrobat , as you will encounter issues when viewing and filling it out within your internet browser. The Arizona Department of Revenue discontinued the calculating 2D Barcode program . Fillable forms no longer calculate your fields, but you can download the fillable form and type the information. This reduces errors from ADOR staff deciphering taxpayer handwriting.

For technical assistance on fillable forms, see Forms Technical Information .

Form Year Form Instructions Publish Date 2025 Download 2025 Form (PDF) Download 2025 Instructions (PDF) 01/01/2026 2024 Download 2024 Form (PDF) Download 2024 Instructions (PDF) 01/01/2025 2023 Download 2023 Form (PDF) Download 2023 Instructions (PDF) 01/01/2024 2022 Download 2022 Form (PDF) Download 2022 Instructions (PDF) 01/01/2023 2021 Download 2021 Form (PDF) Download 2021 Instructions (PDF) 01/01/2022 2020 Download 2020 Form (PDF) Download 2020 Instructions (PDF) 01/01/2021 2019 Download 2019 Form (PDF) Download 2019 Instructions (PDF) 01/01/2020 2018 Download 2018 Form (PDF) Download 2018 Instructions (PDF) 01/01/2019 2017 Download 2017 Form (PDF) Download 2017 Instructions (PDF) 01/01/2018 2016 Download 2016 Form (PDF) Download 2016 Instructions (PDF) 01/01/2017 2015 Download 2015 Form (PDF) Download 2015 Instructions (PDF) 01/01/2016

Arizona Resident Personal Income Tax Booklet

Form Year Form Publish Date 2025 Download 2025 Form (PDF) 01/01/2026 2024 Download 2024 Form (PDF) 01/01/2025 2023 Download 2023 Form (PDF) 01/01/2024 2022 Download 2022 Form (PDF) 01/01/2023 2021 Download 2021 Form (PDF) 01/01/2022 2020 Download 2020 Form (PDF) 01/01/2021 2019 Download 2019 Form (PDF) 01/01/2020 2018 Download 2018 Form (PDF) 01/01/2019 2017 Download 2017 Form (PDF) 01/01/2018 2016 Download 2016 Form (PDF) 01/01/2017 2015 Download 2015 Form (PDF) 01/01/2016

Individual resident taxpayers, filing Form 140, are required to complete this form when electing to take itemized deductions and making adjustments to amounts of certain items reported on the taxpayer's federal Schedule A.

Form Year Form Instructions Publish Date 2025 Download 2025 Form (PDF) Download 2025 Instructions (PDF) 01/01/2026 2024 Download 2024 Form (PDF) Download 2024 Instructions (PDF) 01/01/2025 2023 Download 2023 Form (PDF) Download 2023 Instructions (PDF) 01/01/2024 2022 Download 2022 Form (PDF) Download 2022 Instructions (PDF) 01/01/2023 2021 Download 2021 Form (PDF) Download 2021 Instructions (PDF) 01/01/2022 2020 Download 2020 Form (PDF) Download 2020 Instructions (PDF) 01/01/2021 2019 Download 2019 Form (PDF) Download 2019 Instructions (PDF) 01/01/2020 2018 Download 2018 Form (PDF) Download 2018 Instructions (PDF) 01/01/2019 2017 Download 2017 Form (PDF) Download 2017 Instructions (PDF) 01/01/2018 2016 Download 2016 Form (PDF) Download 2016 Instructions (PDF) 01/01/2017 2015 Download 2015 Form (PDF) Download 2015 Instructions (PDF) 01/01/2016

 Pay your taxes by credit card! American Express  Visa  Discover Card  MasterCard 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. This Booklet Contains: • Form 140NR – Nonresident Personal Income Tax Return • Schedule A(NR) – Itemized Deduction • Form 204 – Extension Request 2 20 Arizona Form 140NR Nonresident Personal Income Tax Booklet 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 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. Before using paper, consider 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 1 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

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 when you file your state and federal taxes.

Tax Year 2020 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 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. You must file if you are: and your gross income is 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 2 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.

Arizona Form 140NR 3 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.

Arizona Form 140NR 4 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: Your filing status is: AND your Arizona gross income for 2020 was greater than: AND your Arizona gross income for 2021 is 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 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. 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 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.

DO YOU HAVE A COMPLICATED RETURN?

E-file makes filing a complex return simple! E-file software offers: • easy step-by-step instructions • error detection before filing • Easy form selection • Maximum deductions

For a list of approved software visit www.azdor.gov

Arizona Form 140NR 5 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.

Arizona Form 140NR 6 NOTE: In some cases, you may treat community income as separate income. For more information on when you may treat community income as separate income, see the department’s ruling, 93-22, When Community Income May Be Treated as Separate Income. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2020. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2020, and you did not remarry in 2020, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8 and 9 Enter the number of exemptions you are claiming in boxes 8 and 9. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2021 (born 1/1/56), that person is considered to be age 65 at the end of 2020 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2020 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2020 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2020 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2020, you must get a statement certified by your eye doctor or registered optometrist that: • You cannot see better than 20/200 in your better eye with glasses or contact lenses. • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Dependents - Boxes 10a and 10b Repeal of Arizona’s dependent deduction for taxable years beginning from and after December 31, 2018. Arizona’s 2019 legislation amended A.R.S. § 43-1023 repealing the deduction for a taxpayer’s dependent for taxable years beginning from and after December 31, 2018. Enactment of Arizona’s Dependent Tax Credit for taxable years beginning from and after December 31, 2018. This legislation also enacted A.R.S. § 1073.01 establishing a Dependent Tax Credit for taxpayers claiming the following individuals: • dependents under the age of 17; and • dependents age 17 and older. The Dependent Tax Credit is claimed on page 2, line 59. Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Lines 10c through 10f You must complete the dependent information section (lines 10c through 10f on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information:

Arizona Form 140NR 7 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.

Arizona Form 140NR 8 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.

Arizona Form 140NR 9 Examples: Arizona Gross Income from line 26 Federal Adjusted Gross Income from line 25 Arizona income ratio $ 17,516 $ 32,000 17,516/32,000 = .547375 enter on line 27: $ 25,650 $ 92,100 25,650/92,100 = .278501 enter on line 27: $ 10,000 $ 9,000 • 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. 5 4 . . 7 2 7 10,000/9,000 = 1.1111 enter on line 27: . 9 0 0 1 . 0

Arizona Form 140NR 10 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)

Arizona Form 140NR 11 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.

Arizona Form 140NR 12 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.

Page 1 of 5 88R REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81P PM 80R RCVD ADOR 10177 (20) AZ Form 140NR (2020) FILING STATUS EXEMPTIONS

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

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

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

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

7  Single Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Arizona Income Additions Subtractions – cont. on page 2 Arizona Form 140NR Nonresident Personal Income Tax Return FOR CALENDAR YEAR 2020 82F Check box 82F if filing under extension Place any required federal and AZ schedules or other documents after Form 140NR.  DO NOT STAPLE ANY ITEMS TO THE RETURN. OR FISCAL YEAR BEGINNING M M D D 2 0 2 0 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over. 11-13 Residency Status (check one): 11 Nonresident 12 Nonresident Active Military 13 Composite Return (see instructions - page 26 If completing lines 8 and 9, also complete lines 47 and 48. For lines 10a and 10b, complete line 59. (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2020 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    10f    14 Check box 14 if married and you are the spouse of an active duty military member who qualifies for relief under the Military Spouses Residency Relief Act...................14 2020 FEDERAL Amount from Federal Return 2020 ARIZONA Source Amount Only 15 Wages, salaries, tips, etc..................................................................................................... 15 00 00 16 Interest................................................................................................................................. 16 00 00 17 Dividends............................................................................................................................. 17 00 00 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 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 • 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 33 Total Arizona sourced net capital gain or (loss). See instructions........................................... 33 00 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 36 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 36 00 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 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 2 of 5 Your Name (as shown on page 1) Your Social Security Number Subtractions – cont. from page 1 Exemptions Balance of Tax Total Payments and Refundable Credits Tax Due or Overpayment Penalty Refund or Amount Owed Voluntary Gifts 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 SIGNATURE

DATE

OCCUPATION

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.   PLEASE SIGN HERE 43 Interest on U.S. obligations such as U.S. savings bonds and treasury bills.................................................................. 43 00 44 Agricultural crops contributed to Arizona charitable organizations................................................................................. 44 00 45 Other Subtractions from Income. See instructions for completing the schedule on page 5......................................... 45 00 46 Subtract lines 43 through 45 from line 42...................................................................................................................... 46 00 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 00 52 Arizona adjusted gross income: Subtract line 51 from line 46. If less than zero, enter “0”.................................................. 52 00 53 Deductions: Check box and enter amount. See instructions........................53I ITEMIZED 53S STANDARD 53 00 54 If you checked box 53S and claim charitable deductions, check 54C Complete page 3. See instructions................... 54 00 55 Arizona taxable income: Subtract lines 53 and 54 from line 52. If less than zero, enter “0”..................................................... 55 00 56 Compute the tax using amount from line 55 and Tax Table X or Y................................................................................ 56 00 57 Tax from recapture of credits from Arizona Form 301, Part 2, line 31............................................................................ 57 00 58 Subtotal of tax: Add lines 56 and 57 and enter the total....................................................................................................... 58 00 59 Dependent Tax Credit. See instructions............................................................................................................................ 59 00 60 Nonrefundable credits from Arizona Form 301, Part 2, line 61...................................................................................... 60 00 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 00 62 2020 AZ income tax withheld......................................................................................................................................... 62 00 63 2020 AZ estimated tax payments..63a 00 Claim of Right.63b 00 Add 63a and 63b.. 63c 00 64 2020 AZ extension payment (Form 204)........................................................................................................................ 64 00 65 Other refundable credits: Check the box(es) and enter the total amount.............................................. 651308-I 652349 65 00 66 Total payments and refundable credits: Add lines 62 through 65 and enter the total....................................................... 66 00 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 00 68 OVERPAYMENT: If line 66 is larger than line 61, subtract line 61 from line 66, and enter amount of overpayment....................... 68 00 69 Amount of line 68 to be applied to 2021 estimated tax.................................................................................................. 69 00 70 Balance of overpayment: Subtract line 69 from line 68...................................................................................................... 70 00 71 - 81 Voluntary Gifts to: Solutions Teams Assigned to Schools............71 00 Arizona Wildlife............... 72 00 Child Abuse Prevention............73 00 Domestic Violence Services.74 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 and Road Fund...................80 00 Spay/Neuter of Animals... 81 00 82 Political Party (if amount is entered on line 75 - check only one): 821Democratic 822Libertarian 823Republican 83 Estimated payment penalty............................................................................................................................................ 83 00 84 841Annualized/Other 842Farmer or Fisherman 843Form 221 included 85 Add lines 71 through 81 and 83; enter the total............................................................................................................. 85 00 86 REFUND: Subtract line 85 from line 70. If less than zero, enter amount owed on line 87.......................................................... 86 00 98 C  Checking or S  Savings 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 87 AMOUNT OWED: Add lines 67 and 85. Make check payable to Arizona Department of Revenue; write your SSN on payment... 87 00

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 - 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 00 2C 2020 Other than by cash or check......................................................................... 2C 00 3C Carryover from prior year....................................................................................... 3C 00 4C Add lines 1C through 3C and enter the total.......................................................... 4C 00 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 00 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 00 7C Subtract lines 5C and 6C from line 4C and enter the difference. If less than zero, enter “0”......................................................................................................... 7C 00 8C Multiply line 7C by 25% (.25) and enter the result.................................................. 8C 00 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 • 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 4 of 5 Your Name (as shown on page 1) Your Social Security Number 2020 Form 140NR Dependent and Other Exemption Information 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) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2020 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    10q    Part 2: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2020 1    2    3    4    5    6    7    8    9    10    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 5 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 page 1, line 31................................................................................................................................................ M 00 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 page 2, line 45.............................................................................................................................................. L 00

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Include with your return. Your Name as shown on Form 140NR Your Social Security Number Spouse’s Name as shown on Form 140NR (if filing joint) Spouse’s Social Security Number 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2................................................................................... 4 00 Adjustment to Interest Deduction 5 If 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 00 Adjustment to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law............................ 6 00 Adjustment to State Income Taxes 7 Amount 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 00 Itemized Deductions 8 Add the amounts on lines 3 and 5............................................................................ 8 00 9 Add the amounts on lines 4, 6 and 7........................................................................ 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 • 16 Arizona itemized deductions: Multiply line 14 by the ratio on line 15. Enter the result here and on Form 140NR, page 2, line 53................................................................................................................... .16 00 You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions on your Arizona return. IMPORTANT ! ADOR 10562 (20)

Page 1 of 2 Arizona Schedule A(NR) Itemized Deductions For Nonresidents 2020

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 claimed a credit on Arizona Form:

For: You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A. 321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public School 323 Contributions to Private School Tuition Organization 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organization - Individual 340 Donations to the Military Family Relief Fund

Form 140NR Schedule A(NR) 2

If you claimed a credit on Arizona Form:

For: 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organization - Individual 352 Contributions 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.

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. 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 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 ADOR 10576 (20) 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. CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date Individual Calendar Year Filers:

This is a request for an automatic 6-month filing extension................................... October 15, 2021 Individual Fiscal Year Filers:

Enter taxable year end date and 6-month extended due date............................... A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. M M D D Y Y Y Y M M D D Y Y Y Y • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. 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. If you are a calendar year filer, your request for a 2020 filing extension must be postmarked on or before April 15, 2021. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six‑month individual federal filing extension. 1 1 3 2 Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code 94 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2020

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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 2

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.

Arizona Form 140NR 13 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 a residential 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.

Arizona Form 140NR 14 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.

Arizona Form 140NR 15 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.

Arizona Form 140NR 16 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) Credit amount (d) Multiply 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.

.

Arizona Form 140NR 17 Table II If your filing status is single, married filing separate, or head of household: is your federal adjusted gross income on page 1, line 25, more than $200,000?

Yes No If your filing status is married filing joint: is your federal adjusted gross income on page 1, line 25, more than $400,000?

Yes No • 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……………………………… If the difference is greater than $19,000, ‘STOP’ you cannot claim the dependent tax credit. $ .00 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………………………………. If the difference is greater than $19,000, ‘STOP’ you cannot claim the dependent tax credit. $ .00 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 line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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.

Arizona Form 140NR 18 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

Arizona Form 140NR 19 • 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.

Arizona Form 140NR 20 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..

Arizona Form 140NR 21 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: Your filing status is: AND Your Arizona gross income for 2019 was greater than: AND Your Arizona gross income for 2020 was 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.

Arizona Form 140NR 22 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.

Arizona Form 140NR 23 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:

• 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 Copy of other State or Country return (if claiming Credit 309) Arizona Claim of Right Arizona Schedule A(NR) 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) Nonrefundable Credit Forms Copy of federal 1040 Schedule A Credit Forms 308-I, 349 (if required)

Arizona Form 140NR 24 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.

Arizona Form 140NR 25 Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011 2020 Original return 2020 Amended return

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.

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

Arizona Form 140NR 26 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.

Arizona Form 140NR 27 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

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)

If taxable income is:

Over But not Over (b)

Taxable income.

Enter the amount of your taxable income from Form: • 140, line 45 • 140NR, line 55 • 140PY, line 55 (c)

Multiply the amount entered in column (b) by (d)

Enter the result (e)

Subtract (f)

Your tax.

Round the difference and enter this amount on your tax form: • 140, line 46 • 140NR, line 56 • 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)

If taxable income is:

Over But not Over (b)

Taxable income.

Enter the amount of your taxable income from Form: • 140, line 45 • 140NR, line 55 • 140PY, line 55 (c)

Multiply the amount entered in column (b) by (d)

Enter the result (e)

Subtract (f)

Your tax.

Round the difference and enter this amount on your tax form: • 140, line 46 • 140NR, line 56 • 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 =

DO YOU QUALIFY FOR AN ARIZONA TAX CREDIT? You may claim the INCREASED EXCISE TAX CREDIT if: you are an Arizona resident Up to $100 per household 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

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

BE SURE TO USE WWW.AZDOR.GOV TO ACCESS YOUR PREFERRED SOFTWARE VENDOR TO ENSURE FREE FILING FOR YOUR FEDERAL AND STATE RETURNS. Do-It-Yourself using the Internet www.azdor.gov Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box YOU MAY QUALIFY TO FILE YOUR FEDERAL AND ARIZONA INDIVIDUAL INCOME TAX RETURNS FOR FREE!!! 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

CONTENTS 140NR CREDITS Credits from Form 301............. 16-18 Credit for taxes paid to another state or country........... 17 DEDUCTIONS Itemized 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 Estimated 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 income................. 9-11 Federal adjusted gross income. 8 Subtractions from income........ 11-14 TAX TABLES Tables X and Y.......................... 28 ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 QUICK AND EASY ACCESS TO TAX HELP AND FORMS 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 For details & eligiblity FREE E-File Available Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER You may use a personal computer and modem to get the forms and information you need at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information 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 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928...... (800) 352-4090

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (21) AZ Form 140 (2021) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2021 OR FISCAL YEAR BEGINNING M M D D 2 0 2 1 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2021 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces.................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00

ADOR 10413 (21)

AZ Form 140 (2021) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE

DATE

OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46a Compute the tax using amount on line 45 and Tax Tables X and Y or Optional Tax Tables........................................... 46a 00 46b Reserved........................................................................................................................................................................ 46b 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 30............................................................................. 47 00 48 Subtotal of tax: Add lines 46a and 47. Enter the total.......................................................................................................... 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 61...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2021 AZ income tax withheld.......................................................................................................................................... 53 00 54 2021 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2021 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount..........................................581308-I 582349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2022 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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 10413 (21) AZ Form 140 (2021) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2021 Form 140 - 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 on their Arizona tax return 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2021 through December 31, 2021 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2021 Gifts by cash or check...................................................................................... 1C 00 2C 2021 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2021 for which you are claiming a credit under Arizona law for the current (2021) or prior (2020) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 25% (.25) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction.

Your Name (as shown on page 1) Your Social Security Number 2021 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e)  IF AGE 65 OR OVER (f)  IF DIED IN 2021 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2021 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (21) AZ Form 140 (2021) Page 4 of 6

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (21) AZ Form 140 (2021) Page 5 of 6 2021 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6.

Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………...................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…........................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return........................... C 00 D Items Previously Deducted for Arizona Purposes...................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2021............................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years..................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................ F(b) 00 G Addition to S Corporation Income Due to Claiming Pass-Through Credit (Forms 312 and 315)...................... G 00 H Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Form 338)............................................................................................................................. H 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………...................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their federal adjusted gross income........................................... J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………..................................... L 00 M Americans with Disabilities Act - Access Expenditures............................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990............................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions..................................................................................................................................................................... O 00 P Other Adjustments Related to Tax Credits. See instructions..………………………................................. P 00 Q Other Adjustments - see instructions........................................................................................................ Q 00 R Total Other Additions: Add all amounts and enter the total here and on page 1, line 18...................... R 00

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (21) AZ Form 140 (2021) Page 6 of 6 2021 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns…………………………………………………………………………….......... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……....................................................... C 00 D Adoption Expense……………………………………………………………………………………………………..... D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace………………………….................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……...................................................... F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………...... G 00 H Qualified State Tuition Distributions………………………………………………………………………................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year......................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………...................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………....... K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.................................................................................................... L 00 M Long-Term Care Insurance Premiums…………………………………………...................................................... M 00 N Americans with Disabilities Act – Access Expenditures……………………………………………………….......... N 00 O Exploration Expenses Deferred before January 1, 1990.................................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1, line 7.................................................................................................................................................................... Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions................................................................................................................................................................................. R 00 S Other Adjustments - see instructions................................................................................................................... S 00 T Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... T 00

 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 it will adopt changes made to the federal tax laws in the prior year. These forms assume the Legislature will adopt all federal law changes made after January 1, 2021. If you use the amounts from your 2021 federal tax return to complete your Arizona return and the Legislature does not adopt the 2021 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 2021 conformity. This Booklet Contains: • Form 140 – Resident Personal Income Tax Return • Form 140 Schedule A – Itemized Deduction Adjustments • Form 204 – Extension Request 2 21 Arizona Form 140 Resident Personal Income Tax Booklet Who can use Arizona Form 140? You, and your spouse if married filing a joint return, may file Form 140 only if you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2021 if any of the following apply to you. • Your Arizona taxable income is $50,000 or more. • You received active duty military pay as a member of the U.S. Armed Forces. • You received pay for active service as a reservist or a National Guard member. • You are making adjustments to income. • You itemize deductions. • You claim tax credits other than the family income tax credit, the property tax credit or the credit for increased excise taxes. • You are claiming estimated payments. 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 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. Before using paper, consider

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 2021, except for changes Congress made to the federal tax code during 2021 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, 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 2022. 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 enacted after March 11, 2021. What does this mean to you? It means that if any of the federal law changes made after March 11, 2021 apply to your 2021 return, you can opt to file your 2021 return using one of the following methods: 1. You can wait and file your 2021 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 2021 return assuming that the federal law changes will be adopted. The 2021 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 those changes, you may need to amend your 2021 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 2021 return and you file and pay the required amended return by the extended due date of your 2022 return. 3. You can file your 2021 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 March 11, 2021. • 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 those changes, you do not have to do anything more. • If Arizona adopts those changes, you may need to amend your 2021 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 2021 1 Due Date for Calendar Year Filers Your 2021 individual income tax return is due by midnight on April 15, 2022. However, because April 15, 2022 falls on a federal holiday, you have until Monday, April 18, 2022 to timely file your 2021 tax return. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2022. However, because October 15, 2022 falls on a Saturday, you have until Monday, October 17, 2022 to timely file your 2021 tax return. 2021 Changes to Income Tax Forms Due to recent modifications to Forms 140, 140NR and 140PY, certain additions and subtractions (adjustments to Arizona Gross Income) have been moved from pages 1 and 2 to pages 5 (additions) and page 6 (subtractions). 2021 Arizona Standard Deduction Amounts Adjusted The 2021 Arizona standard deduction amounts are: • $12,550 for a single taxpayer or a married taxpayer filing a separate return; • $25,100 for a married couple filing a joint return; and • $18,800 for individuals filing a head of household return. Change to Standard Deduction Increase for Charitable Contributions Computation For tax year 2021, taxpayers who did not itemize deductions on their 2021 federal return and elected to take the standard deduction on their Arizona tax returns are not required to reduce the total amount of their 2021 qualifying charitable contributions by the amount for which they took the allowable charitable contribution deduction on their federal tax returns. 2021 Individual Income Tax Brackets Adjusted for Inflation For 2021, the Arizona individual income tax brackets on Tax Table X & Y were adjusted for inflation. The 2021 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. 2021 Tax Surcharge Beginning with tax year 2021, Proposition 208, which was passed by voters in the 2020 general election, requires individuals with taxable incomes of more than $250,000 (single and married filing separate) and more than $500,000 (married filing joint and head of household) to remit an additional tax surcharge. For taxpayers subject to the additional tax surcharge, Tax Tables X and Y were modified for 2021 to provide examples to help taxpayers compute and report their regular tax and tax surcharge amounts on their respective income tax returns (Forms 140, 140NR and 140PY). Arizona Small Business Income (SBI) Tax On July 9, 2021, Governor Doug Ducey signed into law Senate Bill 1783, creating a small business income tax by enacting Arizona Revised Statutes (A.R.S.) § 43-1701, effective for tax years beginning from and after December 31, 2020. The small business income tax rate for tax year 2021 is 3.5% of the amount of a taxpayer’s computed Arizona small business taxable income. Taxpayers filing Arizona Form 140, 140NR or 140PY with small business income reported on Federal Schedules B, C, D, E, F and Form 4797 and included in their federal adjusted gross income may voluntarily elect to report their small business income on the corresponding Arizona Small Business Income Tax return (Form 140-SBI (full-year resident), 140NR-SBI (nonresident) or 140PY-SBI (part- year resident)). This election is made annually by simply timely filing an SBI return and does not bind the taxpayer to having to report small business income separately in subsequent tax years. Taxpayers who elect to report small business income on one of the forms listed above are required to adjust their regular income tax returns by reducing their federal adjusted gross income by the amount of small business income reported on the SBI returns. Several new forms were created relating to the SBI tax form. They include, but are not limited to, the following. • Form 301-SBI (nonrefundable tax credits claimed on the SBI tax return). • Form 309-SBI (Credit for taxes paid to another state or country on Arizona small business income). • Form 204-SBI for making extension payments for the small business income tax return. For more information including filing requirements, see the SBI form and instructions applicable for your residency status. Subtraction for Contributions to a 529 College Savings Plan Recent legislation amended the amount of allowable contributions directly made to a 529 College Savings Plan on behalf of the designated beneficiary that can be subtracted from Arizona gross income if such contributions were not deducted in computing federal adjusted gross income. For tax year 2021, taxpayers may subtract the amount contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return). If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. 1

Individual Income Tax - Highlights 2021 2 Subtraction for Contributions to 529A (ABLE) Accounts In addition to the allowable subtraction for contributions to a 529 College Savings Plan, certain individual taxpayers may also take a subtraction for contributions made during the taxable year to a 529A, Achieving a Better Life Experience (ABLE) account, during the taxable year on behalf of the designated beneficiary if such contributions were not deducted in computing federal adjusted gross income. For tax year 2021, taxpayers may subtract the amount contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return). If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. For more information on the allowable subtraction for contributions to a 529 plan or 529A account, see the instructions for Forms 140, 140NR or 140PY. Individual Tax Credits - Charitable Contributions: Forms 321,322, 323, 348 and 352 The following credit forms were recently modified to require all taxpayers to provide the date of each contribution claimed on the specific tax credit form: • Form 321: Contributions to Qualifying Charitable Organizations • Form 322: Contributions Made or Fees Paid to Public Schools • Form 323: Contributions to Private School Tuition Organizations • Form 348: Contributions to Certified School Tuition Organizations • Form 352: Contributions to Qualifying Foster Care Charitable Organizations Tax Credit for Contributions Made or Fees Paid to Public Schools (Form 322) In 2021, Arizona legislation was passed to limit the qualified contributions or fees paid to community school meal programs. The amendment provides that an amount paid by an individual to receive a meal or a meal card does not qualify as a fee or donation for community school meal programs. 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: • $611 for single or head of household taxpayers • $1,221 for married taxpayers filing a joint return • $611 for married taxpayers filing a separate 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: • $608 for single and head of household taxpayers • $1,214 for married taxpayers filing a joint return • $608 for married taxpayers filing a separate return. New Individual and Corporate Nonrefundable Tax Credit (Form 353, Healthy Forest Production Tax Credit) A.R.S. §§ 43-1076.01 and 43-1162 provide for nonrefundable individual and corporate income tax credits for processing qualifying forest products. “Qualifying forest products” means dead standing and fallen timber, and forest thinnings associated with the harvest of small diameter timber, slash, wood chips, peelings, brush and other woody vegetation, removed from federal, state and other public forest land and from private forest land. Co-owners of a facility that processes qualifying forest products, including partners in a partnership and shareholders of an S corporation, may each claim a pro rata share of the credit allowed based on ownership interest. For more information, see Credit Form 353 and instructions. Required Adjustments to Arizona Gross Income Related to Medical Marijuana Dispensary, Testing Facilities and/or Adult Use Marijuana (including dual licensees) (Forms 140, 140NR, 140PY, 140-SBI, 140NR- SBI and 140PY-SBI) The following is a list of four required adjustments to Arizona Gross Income related to Medical Marijuana Dispensary, Testing Facilities and/or Adult Use Marijuana (including dual licensees). If any of these apply, see the instructions for the form(s) you are filing. If you are filing a Small Business Income tax return, these adjustments are reported on that return. (Note: line references are for the 2021 tax returns.) 1. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income from Schedule C. (Addition) • Forms 140, 140NR and 140PY (page 5) • Forms 140-SBI (line 25); 140NR-SBI (line 24); 140PY-SBI (line 25) 2. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income from Schedule C. (Subtraction) • Forms 140, 140NR and 140PY (page 6) • Forms 140-SBI (line 45); 140NR-SBI and 140PY- SBI (line 42) 2

Individual Income Tax - Highlights 2021 3 3. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees That Elected to Operate on a For-Profit Basis. (Subtraction) • Forms 140, 140NR and 140PY (page 6) • Forms 140-SBI (line 46); 140NR-SBI and 140PY- SBI (line 43) 4. S Corporation Shareholders of Marijuana Establishments, Testing Facilities and Dual Licensees That Elected to Operate on a For-Profit Basis: individual shareholders pro-rata share of expenses related to sales of adult use products. (Subtraction) • Forms 140, 140NR and 140PY (page 6) • Forms 140-SBI (line 47); 140NR-SBI and 140PY- SBI (line 44) 3

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ARIZONA SMALL BUSINESS INCOME TAX 1 On July 9, 2021 Governor Ducey signed into law Senate Bill 1783 establishing Title 43 Chapter 17 (Small Businesses, which provides for an alternative tax for Arizona small business income. Beginning with tax year 2021, a taxpayer may elect to file a separate small business income tax return (Form 140-SBI, 140NR-SBI or 140PY-SBI) to report the their share of Arizona small business gross income. The election is made separately for each tax year and is effective by reporting Arizona small business income on a timely filed Arizona small business income tax return (SBI). The SBI tax return will be considered timely if filed together with the taxpayer’s regular income tax return on or before the due date (including valid extensions). A taxpayer who elects to file an SBI tax return is required to make an adjustment reducing their federal adjusted gross income reported on the regular individual income tax return (Form 140, 140NR or 140PY) by the total amount of Arizona small business gross income reported on their SBI tax return. The Arizona small business gross income is determined by adding the amounts plus the portion of federal Schedule D that represents capital gains (losses) from the disposition of a non-publically traded ownership interest or from the disposition of a capital asset used in a trade or business. Only amounts that are included in the taxpayer’s federal adjusted gross income may be included in Arizona small business gross income. Note: For Arizona nonresidents, Arizona small business gross income is that portion of federal adjusted gross income that represents small business income from sources within Arizona; for Arizona part-year residents, Arizona small business income includes all small business income earned while a resident and only that portion of small business income from Arizona sources during the period of non-residency included in the taxpayer’s federal adjusted gross income. . The SBI tax return must be filed with the regular income tax return to be accepted. If the taxpayer does not file both returns together, the election may be denied and the adjustment to federal adjusted gross income may be disallowed. A taxpayer may revoke their election on a timely filed amended Arizona small business tax return (Form 140X-SBI) and corresponding amended Arizona individual income tax return (Form 140X). __________________________________________ _________________________________________ Items to consider when filing a Small Business Income tax return The following is provided to give general information when filing a SBI tax return. For more information relating to required adjustments, allowable tax credits and computing the tax amount, see the SBI instructions before completing the SBI tax return. You may also want to review the instructions for the regular tax return before completing the SBI tax return. Forms and instructions are available at: https://azdor.gov/forms/individual Due Date (Forms 204 and 204-SBI) The due date is the same as the due date for a regular individual income tax return. For calendar year filers, the due date is April 15. Because April 15, 2022 falls on a federal holiday, taxpayer’s have until April 18, 2022 to timely file their 2021 Arizona tax returns. If you cannot file your SBI return by the due date, a taxpayer may file Form 204, Application for Filing Extension, providing an automatic 6-month extension to file both the regular and SBI tax returns. The extension request must be filed on or before the original due date. Taxpayers are not required to file a separate Form 204 for the SBI tax return. Form 204 will also provide the same extension period for the SBI return. Generally, an extension request would allow the taxpayer to file on or before October 15. Because October 15, 2022 falls on a weekend, taxpayers have until October 17, 2022 to timely file their 2021 Arizona tax return(s). Note: Keep in mind, an extension request does not provide an extension to pay your small business income taxes. Taxpayers must pay their taxes by the original due date of the return to avoid any late payment penalty. 5

ARIZONA SMALL BUSINESS INCOME TAX 2 Form 204-SBI, Extension Payment, is used only to remit a required extension payment for the Small Business Income tax return. Do not file this form to request an extension of time to file the SBI tax return. For more information see Form 204-SBI. AZ Form 301-SBI, Nonrefundable Individual Tax Credits and Recapture, for Small Business Income Most nonrefundable income tax credits available to claim on the regular income tax return are also available to claim on the SBI return. A taxpayer that qualifies for any tax credit shown on page 1 of Form 301-SBI must claim that tax credit on the SBI return and not on the regular individual tax return. The credit cannot be “split” between the two tax returns. However, a taxpayer may “transfer” all or a portion of any nonrefundable tax credit remaining (not used) on the SBI return. To transfer a credit amount, the taxpayer must have a tax liability remaining on their regular income tax return after applying regular return credits against the tax liability shown on the regular individual income tax return. A taxpayer determines if they are eligible to transfer any credit amount and the amount available to transfer by completing page 3 of Form 301-SBI. If the taxpayer transfers any available credit from the 301-SBI, that amount is entered on Form 301. For TY 2021, the transfer amount is reported on Form 301, line 60. For more information, see Forms 301-SBI and 301 and their related instructions. Note: Tax credits claimed for qualifying contributions to qualified charitable organizations (Credit Forms 321, 322, 323, 348 and 352) cannot be claimed on Form 301-SBI and must be claimed on the taxpayer’s regular tax return. Credit for Income Taxes Paid to Other States (Arizona Credit Form 309-SBI) SB 1783 (A.R.S. § 43-1701) also establishes a Credit for Income Taxes Paid to Other States, allowed against Arizona small business income tax liability, for net income taxes imposed by and paid to another state or country on the same Arizona small business taxable income taxed by both Arizona and the other state or country. For more information, see Form 309-SBI. Small Business Income Estimated Tax Payments For tax year 2021, a taxpayer is (was) not required to remit SBI estimated tax payments. The department will not assess a penalty for underpayment of estimated taxes on any amount not remitted. Note: The taxpayer is still subject to the late payment penalty (including applicable interest) for the amount of taxes not paid by the original due date of the return. The department will not assess a late filing penalty on the SBI tax return. If the taxpayer fails to timely file the SBI tax return (either by the normal due date or extended due date), the election will be denied and the adjustment (decrease to federal adjusted gross income) made on the regular tax return for small business income will be disallowed. In this case, all income is reported on the regular income tax form. Beginning with tax year 2022, a taxpayer is required to pay estimated tax in four equal installments (25% of the required annual estimated tax payment) if the taxpayer’s liability is at least $1,000. Use Form 140ES- SBI, Individual Estimated Income Tax Payment (Small Business Income Tax Return), to remit the required amount of quarterly estimated taxes. Page 2 of Form 140ES-SBI includes a worksheet to determine the required amount of each quarterly tax payments. For TY 2022, the tax is equal to 3.0% of small business taxable income reported on the SBI tax return. The amount of the required payment is the lesser of: a) 90% of the tax shown on the return for the TY or, if no return is filed, 90 percent of the tax for that year; b) 100% of the tax shown on the small business income tax return for the preceding TY — unless the preceding TY was not 12 months; or the small business did not file a return for the preceding TY that indicated a liability. If the taxpayer fails to remit the required estimated tax payment (Form 204-SBI), the department may assess an underpayment of estimated taxes penalty on any amount not timely remitted. 6

ARIZONA SMALL BUSINESS INCOME TAX 3 Composite income tax return in Another State A small business taxpayer who participates in a composite income tax return in another state may claim a credit for taxes paid to the other state if the taxes paid to the other state are imposed on — and paid directly — by the small business taxpayer and not the entity and if the: a) Small business taxpayer makes direct payment to the other state; b) Small business taxpayer makes direct payment to the entity filing the composite income tax return; c) Entity charges the small business taxpayer's loan account for the amount of the tax; and d) Entity reduces the small business taxpayer's capital account. If the taxpayer claims the credit for taxes paid to a foreign country, to use the conversion rate in effect on the date the taxpayer paid the taxes to the foreign country. If any taxes paid to another state or country are credited or refunded and the taxpayer has been allowed a credit, to immediately report that fact to DOR. If any taxes paid to another state or country are credited or refunded, a tax equal to the credit allowed for the taxes credited or refunded by the other state or country to be paid by the taxpayer on notice and demand from DOR __________________________________________ _________________________________________ For the purpose of the Small Business Income tax return: 1. "Arizona small business" means an activity that generates Arizona small business gross income. 2. "Arizona small business adjusted gross income" of a resident taxpayer means the Arizona small business gross income subject to the adjustments provided in article 3 of this chapter. A.R.S. § 43-1721 (additions and subtractions to Arizona small business gross income). NOTE: In computing Arizona small business adjusted gross income, the additions and subtractions provided in sections 43-1021 and 43-1022 shall be made but only to the extent the additions and subtractions directly relate to Arizona small business gross income. The subtraction for SBI provided in section 43-1022, paragraph 28 may not be included as a subtraction under this chapter. Deductions other than those deductions already reflected in the net amounts reported on the federal schedules prescribed in section 43-1701 may not be taken against Arizona small business adjusted gross income in computing Arizona small business taxable income. 3. "Arizona small business gross income" of a resident taxpayer: (a) Means the sum of the amounts, whether positive or negative, that are included in a taxpayer's federal adjusted gross income for the taxable year, computed pursuant to the internal revenue code, and that are reported on the following schedules and forms or on equivalent successor schedules and forms designated by the internal revenue service: (i) Schedule B, interest and ordinary dividends. (ii) Schedule C, profit or loss from business. (iii) Schedule E, supplemental income or loss. (iv) Schedule F, profit or loss from farming. (v) Form 4797, sale of business property. (vi) Form 4835, farm rental income and expenses. (b) Includes any amount reported on schedule D, capital gains and losses, that is recognized with respect to either the taxable disposition of an ownership interest in any entity other than a publicly traded entity, or the taxable disposition of capital assets used in connection with a trade or business activity, including goodwill and going concern value. 4. "Arizona small business taxable income" of a resident taxpayer means the Arizona small business adjusted gross income minus any deductions allowable in article 4 of this chapter. 7

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Arizona Form 2021 Resident Personal Income Tax Return 140 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, select Reports, Statistics and Legal Research from the main menu, 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, click on Reports, Statistics and Legal Research from the main menu, and then click on Publications in the left hand column. 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 and pay by April 18, 2022 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 online filing sources. ** For free e-file requirements, check out our website at www.azdor.gov. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see page 28 for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2021 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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. 9

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2021: • 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 (including nonresident aliens), 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 2021, 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 and enter the date of death after the decedent's name. If your spouse died in 2021 and you did not remarry in 2021 or if your spouse died in 2022 before filing a return for 2021, you may file a joint return. If your spouse died in 2021, the joint return should show your spouse's 2021 income before death and your income for all of 2021. If your spouse died in 2022, before filing the 2021 return, the joint return should show all of your income and all of your spouse's income for 2021. 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. 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. 10

Arizona Form 140 3 What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2021 calendar year tax return is due no later than midnight, April 15, 2022. However, April 15, 2022 falls on a federal holiday, you have until Monday, April 18, 2022 to timely file your 2021 tax return. File your return as soon as you can after January 1, 2022, but no later than April 18, 2022. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2021 calendar year tax return, your due date is October 15, 2022. However, October 15, 2022 falls on a Saturday, you have until Monday, October 17, 2022 to timely file your 2021 tax return. 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 18, 2022. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due dates. 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 2021 calendar year return by April 18, 2022, 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 140. 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. 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 11

Arizona Form 140 4 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 and 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 2022? You must make Arizona estimated income tax payments during 2022 if: Your filing status is: AND your Arizona gross income for 2021 was greater than: AND your Arizona gross income for 2022 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2021, you must make estimated payments during 2022 unless you are sure you will not meet the threshold for 2022. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2021 Form 140. 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. 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 26 for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. 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. DO YOU HAVE A COMPLICATED RETURN? E-file makes filing a complex return simple! E-file software offers: • easy step-by-step instructions • error detection before filing • Easy form selection • Maximum deductions For a list of approved software visit www.azdor.gov 12

Arizona Form 140 5 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 in 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 also 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 140. 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, 2021. It does not matter whether or not you were living with your spouse. You may file an Arizona joint return, even if you and your spouse filed separate federal returns. You may file a joint return if your spouse died during 2021 and you did not remarry in 2021. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on his/her own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2021, you may choose to file a separate return. You may file a separate Arizona 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both separate returns. For more information, see the 13

Arizona Form 140 6 department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2021. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2021, and you did not remarry in 2021, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2022 (born 1/1/1957), that person is considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2021 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2021 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2021 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse was partially blind as of December 31, 2021, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. 14

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2021. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principal residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2021. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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? 15

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2021 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2022?" on page 4. Arizona Small Business Income Tax Return Beginning with tax year 2021, individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140-SBI and instructions. How do I Elect to Report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax returns, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Complete lines 4 through 10 on Form 140-SBI to determine the amount to enter on line 13 (Form 140). If you are not making this election, enter “0” on line 13. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income Line 15 - Non-Arizona Municipal Interest If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18, complete the schedule on page 5 of your tax return, Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return 16

Arizona Form 140 9 with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2021 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2021, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2021, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2021 was more than $3,000. • You took a deduction for the amount repaid on your 2021 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F (a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2021, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F (b). Adjustment for Net Operating Loss Due to Claim of Right You must addback the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G. Addition to S Corporation Income Due to Claiming Pass- Through Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. 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. You must include an amount on this line when claiming any of the following Arizona credits: • Agricultural Water Conservation System Credit (Form 312) • Pollution Control Credit (Form 315) 17

Arizona Form 140 10 H. Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2021 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal, which is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship or allowance or payment described in IRC § 135(d)(1)(B) or (C), if received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of the designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Instead, the taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can A Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can A Capital Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident? 18

Arizona Form 140 11 M. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not make the addition here. Make it on the Small Business Income Tax Return. If you take a subtraction on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8, you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 for item O. 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. P. Other Adjustments Related to Tax Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. You may also need to make an addition if you claimed certain tax credits. Call one of the numbers listed on page 1 of these instructions if you claimed any of the following: • Agricultural Water Conservation System credit (Form 312) • Pollution Control Credit. (Form 315) • Agricultural Pollution Control Equipment Credit. (Form 325) Q. Other Adjustments If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Other adjustments may be necessary. For example, you must addback 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. R. Total Other Additions to Arizona Gross Income Add all amounts from page 5 and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24, if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero (0) on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) 19

Arizona Form 140 12 reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero (0). Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011 Multiply the amount on line 23 by 25% (.25) and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item R) that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011 and included in federal adjusted gross income. For more information, see the worksheet on page 29. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example, a mutual fund) for the current tax year but the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011 for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund, including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 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 for these assets depends on the method used to compute the depreciation for these assets. 20

Arizona Form 140 13 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona law, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States Beginning with tax year 2021, if you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If both you and your spouse each received such income, each spouse may subtract 100% of the amount received. 21

Arizona Form 140 14 Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social Security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such Social Security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves is not income received for active service as a National Guard member or a Reserve member, even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 carryforward would have been allowed as a deduction on your 2021 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return). If you are married filing separate returns, either you or your spouse may take the subtraction or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2021, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2021, they may subtract only $8,000 on their 2021 joint tax return. 22

Arizona Form 140 15 You may take a subtraction for the following: • A contribution that you made during 2021 to a plan that existed before 2021. • A contribution that you made during 2021 to a plan established in another state. • A contribution that you made in 2021 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different one (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE) Accounts You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience (ABLE), Account during the taxable year on behalf of the designated beneficiary if such contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See the example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are reporting adjustments on 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting an adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona or any political subdivision of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take a subtraction for converting an existing fireplace to one of the following: • a qualified wood stove; • a qualified wood fireplace; or 23

Arizona Form 140 16 • 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2021 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2021, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2021. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2021. Do not include any amount that is subject to tax by both Arizona and another state in 2021. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona law allows a subtraction for qualified crop gifts made during 2021 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. For property that is sold or otherwise disposed of during the taxable year by a taxpayer who has complied with the 24

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (21) AZ Form 140 (2021) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2021 OR FISCAL YEAR BEGINNING M M D D 2 0 2 1 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2021 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces.................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00 25

ADOR 10413 (21)

AZ Form 140 (2021) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE

DATE

OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46a Compute the tax using amount on line 45 and Tax Tables X and Y or Optional Tax Tables........................................... 46a 00 46b If line 45 is $250,001 or more (single/mfs) or $500,001 or more (mfj/hoh) compute the tax surcharge. Enter the amount.. 46b 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 30............................................................................. 47 00 48 Subtotal of tax: Add lines 46a, 46b and 47. Enter the total................................................................................................... 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 61...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2021 AZ income tax withheld.......................................................................................................................................... 53 00 54 2021 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2021 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount..........................................581308-I 582349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2022 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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. 26

ADOR 10413 (21) AZ Form 140 (2021) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2021 Form 140 - 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 on their Arizona tax return 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2021 through December 31, 2021 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2021 Gifts by cash or check...................................................................................... 1C 00 2C 2021 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2021 for which you are claiming a credit under Arizona law for the current (2021) or prior (2020) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 25% (.25) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction. 27

Your Name (as shown on page 1) Your Social Security Number 2021 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 (e) IF AGE 65 OR OVER (f) IF DIED IN 2021 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2021 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (21) AZ Form 140 (2021) Page 4 of 6 28

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (21) AZ Form 140 (2021) Page 5 of 6 2021 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6.

Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………...................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…........................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return........................... C 00 D Items Previously Deducted for Arizona Purposes...................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2021............................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years..................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................ F(b) 00 G Addition to S Corporation Income Due to Claiming Pass-Through Credit (Forms 312 and 315)...................... G 00 H Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Form 338)............................................................................................................................. H 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………...................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their federal adjusted gross income........................................... J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………..................................... L 00 M Americans with Disabilities Act - Access Expenditures............................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990............................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions..................................................................................................................................................................... O 00 P Other Adjustments Related to Tax Credits. See instructions..………………………................................. P 00 Q Other Adjustments - see instructions........................................................................................................ Q 00 R Total Other Additions: Add all amounts and enter the total here and on page 1, line 18...................... R 00 29

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (21) AZ Form 140 (2021) Page 6 of 6 2021 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns…………………………………………………………………………….......... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……....................................................... C 00 D Adoption Expense……………………………………………………………………………………………………..... D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace………………………….................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……...................................................... F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………...... G 00 H Qualified State Tuition Distributions………………………………………………………………………................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year......................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………...................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………....... K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.................................................................................................... L 00 M Long-Term Care Insurance Premiums…………………………………………...................................................... M 00 N Americans with Disabilities Act – Access Expenditures……………………………………………………….......... N 00 O Exploration Expenses Deferred before January 1, 1990.................................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1, line 7.................................................................................................................................................................... Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions................................................................................................................................................................................. R 00 S Other Adjustments - see instructions................................................................................................................... S 00 T Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... T 00 30

ADOR 10571 (21) PAGE 1 of 2 Include with your return. Your Name as shown on Form 140 Your Social Security Number Spouse’s Name as shown on Form 140 (if filing joint) Spouse’s Social Security Number Arizona Schedule A Itemized Deduction Adjustments For Full-Year Residents Filing Form 140 2021 To itemize on your Arizona return, you must first complete a federal Schedule A even if you did not itemize on your federal return. Use Form 140 Schedule A to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. See instructions for details. 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2................................................................................... 4 00 Adjustment to Interest Deduction 5 If 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 2021 that is equal to the amount of your 2021 federal credit.................................................................................................................................................. 5 00 Adjustments to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law............................ 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 this line................................................................ 7 00 Other Adjustments 8 Amount allowed as a federal itemized deduction that relates to income not subject to Arizona tax.............. 8 00 Adjusted Itemized Deductions 9 Add the amounts on lines 3 and 5........................................................................... 9 00 10 Add the amounts on lines 4, 6, 7, and 8.................................................................. 10 00 11 Total federal itemized deductions allowed to be taken on federal return................ 11 00 12 Enter the amount from line 9 above........................................................................ 12 00 13 Add lines 11 and 12................................................................................................. 13 00 14 Enter the amount from line 10 above...................................................................... 14 00 15 Arizona itemized deductions: Subtract line 14 from line 13. Enter the difference here. Also, enter the amount on Form 140, page 2, line 43. If less than zero, enter “0”................................................................. 15 00 You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions. IMPORTANT ! 31

ADOR 10571 (21) AZ Schedule A (2021) PAGE 2 of 2 Your Name (as shown on page 1) Your Social Security Number 2021 Form 140 Schedule A Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than as charitable contributions. If you claimed income taxes on your federal 1040 Schedule A, complete the following worksheet to determine the amount of your adjustment to enter on page 1, line 7. 1A Total state income 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 state income 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 32

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2021 or fiscal year beginning M M D D 2 0 2 1 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (21) 1 Tax liability for 2021. You may estimate this amount....................................................................................... 1 00 2 Arizona income tax withheld during 2021....................................................................... 2 00 3 Arizona estimated tax payments for 2021...................................................................... 3 00 4 Credits you will claim on your 2021 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, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. 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. If you are a calendar year filer, your request for a 2021 filing extension must be postmarked on or before April 18, 2022. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six‑month individual federal filing extension. 1 1 3 2 Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code 94 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2021 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date Individual Calendar Year Filers:

This is a request for an automatic 6-month filing extension................................... October 17, 2022 Individual Fiscal Year Filers:

Enter taxable year end date and 6-month extended due date............................... A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. Note: Calendar year filers - Because October 15, 2022 falls on a Saturday, you have until October 17, 2022 to file your return. M M D D Y Y Y Y M M D D Y Y Y Y 33

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2021 Form 140 Schedule A Itemized Deduction Adjustments For Full-Year Residents Only Before you complete Arizona Form 140 Schedule A, you must complete a federal Form 1040 Schedule A. You may itemize your deductions on your Arizona return even if you do not itemize on your federal return. For the most part, you can deduct those items that allowable itemized deductions under the Internal Revenue Code (IRC). Use Form 140 Schedule A, Itemized Deduction Adjustments, to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. You must include the federal Form 1040 Schedule A with this form. General Instructions Arizona is a community property state. If you are married filing a separate return and claiming itemized deductions, see the department’s 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 Form 140 Schedule A only if any of the following items apply to you: 1. You are deducting medical and dental expenses. 2. You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates. 3. Your deductions claimed on the federal Schedule A include expenses related to income not subject to Arizona tax. 4. You are claiming an Arizona credit for any amount allowed as a charitable contribution or a state income tax deduction. If any of the above items apply to you, complete federal Form 1040 Schedule A, and then complete Form 140 Schedule A as instructed. Do not complete Form 140 Schedule A if those items do not apply to you. If you do not have to complete Form 140 Schedule A, enter the amount from federal Form 1040 Schedule A on Arizona Form 140, page 2, line 43. 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. In most cases, the deduction allowed on the Arizona return will be larger than the deduction allowed on the federal return. On your Arizona return, you do not have to reduce your medical expenses by a percentage of your federal adjusted gross income. In most cases, you may deduct more medical expenses on your Arizona return than you can deduct on your federal return. Complete lines 1 through 4 to deduct those expenses that were not allowed on federal return due to limitations. 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 amounts 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. For details about what types of expenses you may deduct, see federal Form 1040 Schedule A. 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 claimed this credit on your federal return (using federal Form 8396), you may deduct the amount of mortgage interest you paid in 2021 that is equal to the amount of that credit. Enter the amount of that interest on line 5. Line 6 - Adjustments to Charitable Contributions Skip line 6a if you are not claiming an Arizona tax credit for any amount allowed as a charitable contribution. 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.

35

Form 140 Schedule A Itemized Deduction Adjustments

2 For Example: If you claimed a credit on AZ Form: For:

You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A. 321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public Schools 323 Contributions to Private School Tuition Organization 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organizations - Individual 340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2020 return for a contribution that you made during 2021 (see Arizona Forms 321, 322, 323, 348, and 352), you must make this adjustment on your 2021 return, even though you claimed the credit on your 2020 return. If you are claiming a credit on your 2021 return for a contribution made during 2022 (see Arizona Forms 321, 322, 323, 348, and 352), you must make this adjustment on your 2022 return, even though you are claiming the credit on your 2021 return. Line 7 – Adjustment to State Income Taxes Arizona Revised Statutes § 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 as 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 to determine the amount of your adjustment to enter on line 7. Line 8 - Other Adjustments You may not deduct any expense that relates to income not subject to Arizona tax. You must complete line 7 if your federal Schedule A includes such expenses. Such expenses include: 1. Interest or other related expenses incurred to purchase

or carry U.S. obligations, when the income is not

subject to Arizona tax. 2. State taxes paid to other states for prior years if you

were not an Arizona resident for that prior year. 3. Employee business expenses that relate to income not

subject to Arizona tax. This list is not complete. There may be other items included in your federal Schedule A that you cannot deduct on the Arizona return. Enter the amount of expenses deductible on federal Schedule A that are allocable to income that is not subject to Arizona income tax. Lines 9 through 14 - Adjusted Itemized Deductions Complete lines 9 through 14 as instructed on the form. Line 15 – Arizona Itemized Deductions Subtract line 14 from line 13 and enter the difference. If less than zero, enter “0”. Also, enter the amount on Form 140, page 2, line 43. NOTE: The amount entered on line 15 cannot be a negative number. Entering a negative number on Form 140, line 43 may delay the processing of your return. 36

Arizona Form 2021 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 select Reports, Statistics and Legal Research from the main menu 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, Statistics and Legal Research from the main menu then click on Publications in the left side column.

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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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 April 18, 2022 to file the request for an extension. This will allow you to file your return by October 17, 2022. Complete Form 204 to request an automatic 6-month extension. Write 2021 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 18, 2022 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 37

Arizona Form 204 2

April 18, 2022 even though your federal return is due on June 15, 2022. If you want to file your 2021 Arizona return after April 18, 2022 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 17, 2022. 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, 2022 even though your federal return will not be due until December 15, 2022. If you file your 2021 Arizona calendar year return after October 17, 2022 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 2021 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 2021. 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. 38

Arizona Form 140 17 requirement to add back all depreciation for 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) if 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of adult use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of adult use products shown on your Form 120S Schedule K-1, line 7. 39

Arizona Form 140 18 R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI. To take this subtraction, you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, Other Additions to Arizona Gross Income, item O. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6 and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41 or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2021, 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. 2. In 2021, 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, 2022 (born 1/1/1957), that person would be considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2021. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. 40

Arizona Form 140 19 Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41, you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter zero (0). Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 Line 44 - 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 taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X & Y or the Optional Tax Tables. Line 46a - Tax Amount Enter the tax from either Tax Tables X and Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 46b – Tax Surcharge Amount If you are single or married filing a separate return and the amount on line 45 is $250,001 or more, compute the tax surcharge on Tax Tables X and Y. Enter the amount of the tax surcharge. If you are married filing a joint return or head of household and the amount on line 45 is $500,001 or more, compute the tax surcharge on Tax Tables X and Y. Enter the amount of the tax surcharge. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 30. Line 48 - Subtotal of Tax Add lines 46a, 46b and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49, you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. 41

Arizona Form 140 20 • $25 for each qualifying dependent who is at least 17 years of at age at the end of the taxable year. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) 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 allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household, is your federal adjusted gross income on page 1, line 12 more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12 more than $400,000? Yes No • 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 3 on page 2, line 49. • If you answered “Yes”, you are required to reduce the amount of credit computed in Table I. Complete Table III or Table IV as applicable, then go to Table V. Table III 2021 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 12…………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2021 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit out for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4.

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Arizona Form 140 21 Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8 is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4.

Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575

Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000

Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $

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Arizona Form 140 22 Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form and instructions for which credits must claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or countries on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 properly established can be carried forward for the respective five year carryforward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 who 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carryforward period. 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. 44

Arizona Form 140 23 Renewable Energy Production Tax Credit You may qualify for this credit if you produced electricity using a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 353 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 61 on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter zero (0). Totaling Payments and Refundable Credits Line 53 - 2021 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2021 Arizona Estimated Tax Payments Including Amount Applied from Your 2020 Return and Arizona Claim of Right Use this line if you did any of the following: • made 2021 estimated income tax payments to Arizona or • applied any of your refund from your 2020 Arizona tax return to 2021 estimated taxes for Arizona or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2021 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2021, but are filing separate 2021 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2021 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2021 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status, which means: • If you are married filing a joint return or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2021 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2021 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. 45

Arizona Form 140 24 For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17 on line 56, and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and are claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $ 100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2021 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: SSI Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2021. • You paid property tax on your Arizona home in 2021, you paid rent on taxable property for the entire year, or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2022. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58. 46

Arizona Form 140 25 2021 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

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 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to Be Applied to 2022 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2022, you cannot use that amount to pay any tax that is later found to be due for 2021. You also may not claim a refund for that amount until you file your 2022 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. 47

Arizona Form 140 26 Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2021 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2022. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who, for federal purposes, reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero (0), enter the amount owed on line 80. 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 that 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. Write to: Refund Desk, Arizona Department of Revenue, PO Box 29216, Phoenix, AZ 85038-9216. Include your SSN in your letter. You must have made Arizona estimated income tax payments during 2021 if: Your filing status is: AND Your Arizona gross income for 2020 was greater than: AND Your Arizona gross income for 2021 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000 48

Arizona Form 140 27 Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, 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 2021. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments. 49

Arizona Form 140 28 Complete Arizona Form 140-IA and mail the completed form to the address listed on 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 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2022. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are is on the 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. • 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 Place pages in the order shown on the next column. • If you are filing Arizona Form 140-SBI, Small Business Income, place this form before Form 140. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you completed Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, place after page 6. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return.

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 18, 2022. 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. Copy of other State or Country return (if claiming Credit 309) Arizona Claim of Right Arizona Schedule A (if required) Form 301 and 301-SBI (if filing) Form 140PTC (if required)

Form 140, pages 5 and 6 (if required) Form 140, page 4 (if required) Form 140, page 3 (if required) Form 140, pages 1 and 2 Form 203 (if filing) Form 131 (if filing) Copy of federal 1040 Schedule A Credit Forms 308-I, 349 (if required) Nonrefundable Credit Forms) 50

Arizona Form 140 29 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 received by the department within five business days of the private meter postmark date, the department will consider the 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% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, review 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 2021 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.

51

Arizona Form 140 30 Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011

2021 Original return 2021 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” …………………………………………………………………………………….. 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………………. 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 gains or (losses) in this worksheet. 52

2021 Arizona Optional Tax Tables for Forms 140, 140A, and 140EZ

If your taxable income is less than $50,000, use the Optional Tax Tables. If your taxable income is $50,000 or more, use Tax Table X or Y. Also, if your taxable income is $50,000 or more, you cannot use Form 140EZ or Form 140A to file for 2021. In this case, you must file using Form 140.

To Find Your Tax: 1. Read down the income column until you find your taxable income shown on your return. Form 140, line 45 Form 140A, line 19 Form 140EZ, line 8 2. Read across until you find your filing status. Enter the tax on your return. Form 140, line 46a Form 140A, line 20 Form 140EZ, line 9

Example: Mr. and Mrs. Timely are filing a joint return. Their taxable income is $19,360 (Form 140, line 45). First, they find the $19,350-$19,400 income line. Next they find the column for married filing jointly and read down the column. The amount shown where the income lines and filing status column meet is $502. This is the tax amount they must write on Form 140, line 46a.

At Least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household Your Tax Is - 19,300 19,350 501 501 19,350 19,400 502 502 19,400 19,450 503 503

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

If less than $20 tax is 0 Your Tax Is

$2,000 Your Tax Is

$4,000 Your Tax Is

20

50 1 1

2,000

2,050 52 52

4,000

4,050 104 104 50 100 2 2 2,050 2,100 54 54 4,050 4,100 106 106 100 150 3 3 2,100 2,150 55 55 4,100 4,150 107 107 150 200 5 5 2,150 2,200 56 56 4,150 4,200 108 108 200 250 6 6 2,200 2,250 58 58 4,200 4,250 109 109 250 300 7 7 2,250 2,300 59 59 4,250 4,300 111 111 300 350 8 8 2,300 2,350 60 60 4,300 4,350 112 112 350 400 10 10 2,350 2,400 62 62 4,350 4,400 113 113 400 450 11 11 2,400 2,450 63 63 4,400 4,450 115 115 450 500 12 12 2,450 2,500 64 64 4,450 4,500 116 116 500 550 14 14 2,500 2,550 65 65 4,500 4,550 117 117 550 600 15 15 2,550 2,600 67 67 4,550 4,600 118 118 600 650 16 16 2,600 2,650 68 68 4,600 4,650 120 120 650 700 17 17 2,650 2,700 69 69 4,650 4,700 121 121 700 750 19 19 2,700 2,750 71 71 4,700 4,750 122 122 750 800 20 20 2,750 2,800 72 72 4,750 4,800 124 124 800 850 21 21 2,800 2,850 73 73 4,800 4,850 125 125 850 900 23 23 2,850 2,900 74 74 4,850 4,900 126 126 900 950 24 24 2,900 2,950 76 76 4,900 4,950 128 128 950 1,000

25 25 2,950 3,000 77 77 4,950 5,000 129 129

$1,000 Your Tax Is

$3,000 Your Tax Is

$5,000 Your Tax Is

1,000

1,050 27 27

3,000

3,050 78 78

5,000

5,050 130 130 1,050 1,100 28 28 3,050 3,100 80 80 5,050 5,100 131 131 1,100 1,150 29 29 3,100 3,150 81 81 5,100 5,150 133 133 1,150 1,200 30 30 3,150 3,200 82 82 5,150 5,200 134 134 1,200 1,250 32 32 3,200 3,250 84 84 5,200 5,250 135 135 1,250 1,300 33 33 3,250 3,300 85 85 5,250 5,300 137 137 1,300 1,350 34 34 3,300 3,350 86 86 5,300 5,350 138 138 1,350 1,400 36 36 3,350 3,400 87 87 5,350 5,400 139 139 1,400 1,450 37 37 3,400 3,450 89 89 5,400 5,450 141 141 1,450 1,500 38 38 3,450 3,500 90 90 5,450 5,500 142 142 1,500 1,550 39 39 3,500 3,550 91 91 5,500 5,550 143 143 1,550 1,600 41 41 3,550 3,600 93 93 5,550 5,600 144 144 1,600 1,650 42 42 3,600 3,650 94 94 5,600 5,650 146 146 1,650 1,700 43 43 3,650 3,700 95 95 5,650 5,700 147 147 1,700 1,750 45 45 3,700 3,750 96 96 5,700 5,750 148 148 1,750 1,800 46 46 3,750 3,800 98 98 5,750 5,800 150 150 1,800 1,850 47 47 3,800 3,850 99 99 5,800 5,850 151 151 1,850 1,900 49 49 3,850 3,900 100 100 5,850 5,900 152 152 1,900 1,950 50 50 3,900 3,950 102 102 5,900 5,950 153 153 1,950 2,000 51 51 3,950 4,000 103 103 5,950 6,000 155 155

53

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

$6,000 Your Tax Is

$9,000 Your Tax Is

$12,000 Your Tax Is

6,000

6,050 156 156

9,000

9,050 234 234

12,000

12,050 311 311 6,050 6,100 157 157 9,050 9,100 235 235 12,050 12,100 313 313 6,100 6,150 159 159 9,100 9,150 236 236 12,100 12,150 314 314 6,150 6,200 160 160 9,150 9,200 238 238 12,150 12,200 315 315 6,200 6,250 161 161 9,200 9,250 239 239 12,200 12,250 317 317 6,250 6,300 163 163 9,250 9,300 240 240 12,250 12,300 318 318 6,300 6,350 164 164 9,300 9,350 242 242 12,300 12,350 319 319 6,350 6,400 165 165 9,350 9,400 243 243 12,350 12,400 321 321 6,400 6,450 166 166 9,400 9,450 244 244 12,400 12,450 322 322 6,450 6,500 168 168 9,450 9,500 245 245 12,450 12,500 323 323 6,500 6,550 169 169 9,500 9,550 247 247 12,500 12,550 324 324 6,550 6,600 170 170 9,550 9,600 248 248 12,550 12,600 326 326 6,600 6,650 172 172 9,600 9,650 249 249 12,600 12,650 327 327 6,650 6,700 173 173 9,650 9,700 251 251 12,650 12,700 328 328 6,700 6,750 174 174 9,700 9,750 252 252 12,700 12,750 330 330 6,750 6,800 175 175 9,750 9,800 253 253 12,750 12,800 331 331 6,800 6,850 177 177 9,800 9,850 254 254 12,800 12,850 332 332 6,850 6,900 178 178 9,850 9,900 256 256 12,850 12,900 333 333 6,900 6,950 179 179 9,900 9,950 257 257 12,900 12,950 335 335 6,950

7,000

181 181 9,950 10,000 258 258 12,950 13,000 336 336

$7,000 Your Tax Is

$10,000 Your Tax Is

$13,000 Your Tax Is

7,000

7,050 182 182

10,000

10,050 260 260

13,000

13,050 337 337 7,050 7,100 183 183 10,050 10,100 261 261 13,050 13,100 339 339 7,100 7,150 185 185 10,100 10,150 262 262 13,100 13,150 340 340 7,150 7,200 186 186 10,150 10,200 264 264 13,150 13,200 341 341 7,200 7,250 187 187 10,200 10,250 265 265 13,200 13,250 343 343 7,250 7,300 188 188 10,250 10,300 266 266 13,250 13,300 344 344 7,300 7,350 190 190 10,300 10,350 267 267 13,300 13,350 345 345 7,350 7,400 191 191 10,350 10,400 269 269 13,350 13,400 346 346 7,400 7,450 192 192 10,400 10,450 270 270 13,400 13,450 348 348 7,450 7,500 194 194 10,450 10,500 271 271 13,450 13,500 349 349 7,500 7,550 195 195 10,500 10,550 273 273 13,500 13,550 350 350 7,550 7,600 196 196 10,550 10,600 274 274 13,550 13,600 352 352 7,600 7,650 197 197 10,600 10,650 275 275 13,600 13,650 353 353 7,650 7,700 199 199 10,650 10,700 276 276 13,650 13,700 354 354 7,700 7,750 200 200 10,700 10,750 278 278 13,700 13,750 355 355 7,750 7,800 201 201 10,750 10,800 279 279 13,750 13,800 357 357 7,800 7,850 203 203 10,800 10,850 280 280 13,800 13,850 358 358 7,850 7,900 204 204 10,850 10,900 282 282 13,850 13,900 359 359 7,900 7,950 205 205 10,900 10,950 283 283 13,900 13,950 361 361 7,950 8,000 207 207 10,950 11,000 284 284 13,950 14,000 362 362

$8,000 Your Tax Is

$11,000 Your Tax Is

$14,000 Your Tax Is

8,000

8,050 208 208

11,000

11,050 286 286

14,000

14,050 363 363 8,050 8,100 209 209 11,050 11,100 287 287 14,050 14,100 365 365 8,100 8,150 210 210 11,100 11,150 288 288 14,100 14,150 366 366 8,150 8,200 212 212 11,150 11,200 289 289 14,150 14,200 367 367 8,200 8,250 213 213 11,200 11,250 291 291 14,200 14,250 368 368 8,250 8,300 214 214 11,250 11,300 292 292 14,250 14,300 370 370 8,300 8,350 216 216 11,300 11,350 293 293 14,300 14,350 371 371 8,350 8,400 217 217 11,350 11,400 295 295 14,350 14,400 372 372 8,400 8,450 218 218 11,400 11,450 296 296 14,400 14,450 374 374 8,450 8,500 220 220 11,450 11,500 297 297 14,450 14,500 375 375 8,500 8,550 221 221 11,500 11,550 298 298 14,500 14,550 376 376 8,550 8,600 222 222 11,550 11,600 300 300 14,550 14,600 377 377 8,600 8,650 223 223 11,600 11,650 301 301 14,600 14,650 379 379 8,650 8,700 225 225 11,650 11,700 302 302 14,650 14,700 380 380 8,700 8,750 226 226 11,700 11,750 304 304 14,700 14,750 381 381 8,750 8,800 227 227 11,750 11,800 305 305 14,750 14,800 383 383 8,800 8,850 229 229 11,800 11,850 306 306 14,800 14,850 384 384 8,850 8,900 230 230 11,850 11,900 308 308 14,850 14,900 385 385 8,900 8,950 231 231 11,900 11,950 309 309 14,900 14,950 387 387 8,950 9,000 232 232 11,950 12,000 310 310 14,950 15,000 388 388 54

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $15,000 Your Tax Is $18,000 Your Tax Is $21,000 Your Tax Is

15,000

15,050 389 389

18,000

18,050 467 467

21,000

21,050 545 545 15,050 15,100 390 390 18,050 18,100 468 468 21,050 21,100 546 546 15,100 15,150 392 392 18,100 18,150 469 469 21,100 21,150 547 547 15,150 15,200 393 393 18,150 18,200 471 471 21,150 21,200 548 548 15,200 15,250 394 394 18,200 18,250 472 472 21,200 21,250 550 550 15,250 15,300 396 396 18,250 18,300 473 473 21,250 21,300 551 551 15,300 15,350 397 397 18,300 18,350 475 475 21,300 21,350 552 552 15,350 15,400 398 398 18,350 18,400 476 476 21,350 21,400 554 554 15,400 15,450 400 400 18,400 18,450 477 477 21,400 21,450 555 555 15,450 15,500 401 401 18,450 18,500 479 479 21,450 21,500 556 556 15,500 15,550 402 402 18,500 18,550 480 480 21,500 21,550 557 557 15,550 15,600 403 403 18,550 18,600 481 481 21,550 21,600 559 559 15,600 15,650 405 405 18,600 18,650 482 482 21,600 21,650 560 560 15,650 15,700 406 406 18,650 18,700 484 484 21,650 21,700 561 561 15,700 15,750 407 407 18,700 18,750 485 485 21,700 21,750 563 563 15,750 15,800 409 409 18,750 18,800 486 486 21,750 21,800 564 564 15,800 15,850 410 410 18,800 18,850 488 488 21,800 21,850 565 565 15,850 15,900 411 411 18,850 18,900 489 489 21,850 21,900 567 567 15,900 15,950 412 412 18,900 18,950 490 490 21,900 21,950 568 568 15,950

16,000

414 414 18,950 19,000 491 491 21,950 22,000 569 569 $16,000 Your Tax Is $19,000 Your Tax Is $22,000 Your Tax Is

16,000

16,050 415 415

19,000

19,050 493 493

22,000

22,050 570 570 16,050 16,100 416 416 19,050 19,100 494 494 22,050 22,100 572 572 16,100 16,150 418 418 19,100 19,150 495 495 22,100 22,150 573 573 16,150 16,200 419 419 19,150 19,200 497 497 22,150 22,200 574 574 16,200 16,250 420 420 19,200 19,250 498 498 22,200 22,250 576 576 16,250 16,300 422 422 19,250 19,300 499 499 22,250 22,300 577 577 16,300 16,350 423 423 19,300 19,350 501 501 22,300 22,350 578 578 16,350 16,400 424 424 19,350 19,400 502 502 22,350 22,400 580 580 16,400 16,450 425 425 19,400 19,450 503 503 22,400 22,450 581 581 16,450 16,500 427 427 19,450 19,500 504 504 22,450 22,500 582 582 16,500 16,550 428 428 19,500 19,550 506 506 22,500 22,550 583 583 16,550 16,600 429 429 19,550 19,600 507 507 22,550 22,600 585 585 16,600 16,650 431 431 19,600 19,650 508 508 22,600 22,650 586 586 16,650 16,700 432 432 19,650 19,700 510 510 22,650 22,700 587 587 16,700 16,750 433 433 19,700 19,750 511 511 22,700 22,750 589 589 16,750 16,800 434 434 19,750 19,800 512 512 22,750 22,800 590 590 16,800 16,850 436 436 19,800 19,850 513 513 22,800 22,850 591 591 16,850 16,900 437 437 19,850 19,900 515 515 22,850 22,900 592 592 16,900 16,950 438 438 19,900 19,950 516 516 22,900 22,950 594 594 16,950 17,000 440 440 19,950 20,000 517 517 22,950 23,000 595 595 $17,000 Your Tax Is $20,000 Your Tax Is $23,000 Your Tax Is

17,000

17,050 441 441

20,000

20,050 519 519

23,000

23,050 596 596 17,050 17,100 442 442 20,050 20,100 520 520 23,050 23,100 598 598 17,100 17,150 444 444 20,100 20,150 521 521 23,100 23,150 599 599 17,150 17,200 445 445 20,150 20,200 523 523 23,150 23,200 600 600 17,200 17,250 446 446 20,200 20,250 524 524 23,200 23,250 602 602 17,250 17,300 447 447 20,250 20,300 525 525 23,250 23,300 603 603 17,300 17,350 449 449 20,300 20,350 526 526 23,300 23,350 604 604 17,350 17,400 450 450 20,350 20,400 528 528 23,350 23,400 605 605 17,400 17,450 451 451 20,400 20,450 529 529 23,400 23,450 607 607 17,450 17,500 453 453 20,450 20,500 530 530 23,450 23,500 608 608 17,500 17,550 454 454 20,500 20,550 532 532 23,500 23,550 609 609 17,550 17,600 455 455 20,550 20,600 533 533 23,550 23,600 611 611 17,600 17,650 456 456 20,600 20,650 534 534 23,600 23,650 612 612 17,650 17,700 458 458 20,650 20,700 535 535 23,650 23,700 613 613 17,700 17,750 459 459 20,700 20,750 537 537 23,700 23,750 614 614 17,750 17,800 460 460 20,750 20,800 538 538 23,750 23,800 616 616 17,800 17,850 462 462 20,800 20,850 539 539 23,800 23,850 617 617 17,850 17,900 463 463 20,850 20,900 541 541 23,850 23,900 618 618 17,900 17,950 464 464 20,900 20,950 542 542 23,900 23,950 620 620 17,950 18,000 466 466 20,950 21,000 543 543 23,950 24,000 621 621 55

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $24,000 Your Tax Is $27,000 Your Tax Is $30,000 Your Tax Is

24,000

24,050 622 622

27,000

27,050 700 700

30,000

30,050 794 778 24,050 24,100 624 624 27,050 27,100 701 701 30,050 30,100 796 779 24,100 24,150 625 625 27,100 27,150 703 703 30,100 30,150 797 780 24,150 24,200 626 626 27,150 27,200 704 704 30,150 30,200 799 782 24,200 24,250 627 627 27,200 27,250 705 705 30,200 30,250 801 783 24,250 24,300 629 629 27,250 27,300 706 706 30,250 30,300 802 784 24,300 24,350 630 630 27,300 27,350 708 708 30,300 30,350 804 785 24,350 24,400 631 631 27,350 27,400 709 709 30,350 30,400 806 787 24,400 24,450 633 633 27,400 27,450 710 710 30,400 30,450 807 788 24,450 24,500 634 634 27,450 27,500 712 712 30,450 30,500 809 789 24,500 24,550 635 635 27,500 27,550 713 713 30,500 30,550 811 791 24,550 24,600 636 636 27,550 27,600 714 714 30,550 30,600 812 792 24,600 24,650 638 638 27,600 27,650 715 715 30,600 30,650 814 793 24,650 24,700 639 639 27,650 27,700 717 717 30,650 30,700 816 794 24,700 24,750 640 640 27,700 27,750 718 718 30,700 30,750 817 796 24,750 24,800 642 642 27,750 27,800 719 719 30,750 30,800 819 797 24,800 24,850 643 643 27,800 27,850 721 721 30,800 30,850 821 798 24,850 24,900 644 644 27,850 27,900 722 722 30,850 30,900 822 800 24,900 24,950 646 646 27,900 27,950 724 723 30,900 30,950 824 801 24,950

25,000

647 647 27,950 28,000 726 725 30,950 31,000 826 802 $25,000 Your Tax Is $28,000 Your Tax Is $31,000 Your Tax Is

25,000

25,050 648 648

28,000

28,050 727 726

31,000

31,050 827 804 25,050 25,100 649 649 28,050 28,100 729 727 31,050 31,100 829 805 25,100 25,150 651 651 28,100 28,150 731 728 31,100 31,150 831 806 25,150 25,200 652 652 28,150 28,200 732 730 31,150 31,200 832 807 25,200 25,250 653 653 28,200 28,250 734 731 31,200 31,250 834 809 25,250 25,300 655 655 28,250 28,300 736 732 31,250 31,300 836 810 25,300 25,350 656 656 28,300 28,350 737 734 31,300 31,350 837 811 25,350 25,400 657 657 28,350 28,400 739 735 31,350 31,400 839 813 25,400 25,450 659 659 28,400 28,450 741 736 31,400 31,450 841 814 25,450 25,500 660 660 28,450 28,500 742 738 31,450 31,500 842 815 25,500 25,550 661 661 28,500 28,550 744 739 31,500 31,550 844 816 25,550 25,600 662 662 28,550 28,600 746 740 31,550 31,600 846 818 25,600 25,650 664 664 28,600 28,650 747 741 31,600 31,650 847 819 25,650 25,700 665 665 28,650 28,700 749 743 31,650 31,700 849 820 25,700 25,750 666 666 28,700 28,750 751 744 31,700 31,750 851 822 25,750 25,800 668 668 28,750 28,800 752 745 31,750 31,800 852 823 25,800 25,850 669 669 28,800 28,850 754 747 31,800 31,850 854 824 25,850 25,900 670 670 28,850 28,900 756 748 31,850 31,900 856 826 25,900 25,950 671 671 28,900 28,950 757 749 31,900 31,950 858 827 25,950 26,000 673 673 28,950 29,000 759 750 31,950 32,000 859 828 $26,000 Your Tax Is $29,000 Your Tax Is $32,000 Your Tax Is

26,000

26,050 674 674

29,000

29,050 761 752

32,000

32,050 861 829 26,050 26,100 675 675 29,050 29,100 762 753 32,050 32,100 863 831 26,100 26,150 677 677 29,100 29,150 764 754 32,100 32,150 864 832 26,150 26,200 678 678 29,150 29,200 766 756 32,150 32,200 866 833 26,200 26,250 679 679 29,200 29,250 767 757 32,200 32,250 868 835 26,250 26,300 681 681 29,250 29,300 769 758 32,250 32,300 869 836 26,300 26,350 682 682 29,300 29,350 771 760 32,300 32,350 871 837 26,350 26,400 683 683 29,350 29,400 772 761 32,350 32,400 873 839 26,400 26,450 684 684 29,400 29,450 774 762 32,400 32,450 874 840 26,450 26,500 686 686 29,450 29,500 776 763 32,450 32,500 876 841 26,500 26,550 687 687 29,500 29,550 777 765 32,500 32,550 878 842 26,550 26,600 689 688 29,550 29,600 779 766 32,550 32,600 879 844 26,600 26,650 690 690 29,600 29,650 781 767 32,600 32,650 881 845 26,650 26,700 691 691 29,650 29,700 782 769 32,650 32,700 883 846 26,700 26,750 692 692 29,700 29,750 784 770 32,700 32,750 884 848 26,750 26,800 693 693 29,750 29,800 786 771 32,750 32,800 886 849 26,800 26,850 695 695 29,800 29,850 787 772 32,800 32,850 888 850 26,850 26,900 696 696 29,850 29,900 789 774 32,850 32,900 889 851 26,900 26,950 697 697 29,900 29,950 791 775 32,900 32,950 891 853 26,950 27,000 699 699 29,950 30,000 792 776 32,950 33,000 893 854 56

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

At least

But less than Single or Married Filing Separately Married Filing Jointly or Head of Household

$33,000 Your Tax Is

$36,000 Your Tax Is

$39,000 Your Tax Is

33,000

33,050 894 855

36,000

36,050 994 933

39,000

39,050 1,095 1,011 33,050 33,100 896 857 36,050 36,100 996 934 39,050 39,100 1,096 1,012 33,100 33,150 898 858 36,100 36,150 998 936 39,100 39,150 1,098 1,013 33,150 33,200 899 859 36,150 36,200 999 937 39,150 39,200 1,100 1,015 33,200 33,250 901 861 36,200 36,250 1,001 938 39,200 39,250 1,101 1,016 33,250 33,300 903 862 36,250 36,300 1,003 940 39,250 39,300 1,103 1,017 33,300 33,350 904 863 36,300 36,350 1,004 941 39,300 39,350 1,105 1,019 33,350 33,400 906 864 36,350 36,400 1,006 942 39,350 39,400 1,106 1,020 33,400 33,450 908 866 36,400 36,450 1,008 943 39,400 39,450 1,108 1,021 33,450 33,500 909 867 36,450 36,500 1,009 945 39,450 39,500 1,110 1,022 33,500 33,550 911 868 36,500 36,550 1,011 946 39,500 39,550 1,111 1,024 33,550 33,600 913 870 36,550 36,600 1,013 947 39,550 39,600 1,113 1,025 33,600 33,650 914 871 36,600 36,650 1,014 949 39,600 39,650 1,115 1,026 33,650 33,700 916 872 36,650 36,700 1,016 950 39,650 39,700 1,116 1,028 33,700 33,750 918 873 36,700 36,750 1,018 951 39,700 39,750 1,118 1,029 33,750 33,800 919 875 36,750 36,800 1,019 952 39,750 39,800 1,120 1,030 33,800 33,850 921 876 36,800 36,850 1,021 954 39,800 39,850 1,121 1,031 33,850 33,900 923 877 36,850 36,900 1,023 955 39,850 39,900 1,123 1,033 33,900 33,950 924 879 36,900 36,950 1,025 956 39,900 39,950 1,125 1,034 33,950

34,000

926 880 36,950 37,000 1,026 958 39,950 40,000 1,126 1,035

$34,000 Your Tax Is

$37,000 Your Tax Is

$40,000 Your Tax Is

34,000

34,050 928 881

37,000

37,050 1,028 959

40,000

40,050 1,128 1,037 34,050 34,100 929 883 37,050 37,100 1,030 960 40,050 40,100 1,130 1,038 34,100 34,150 931 884 37,100 37,150 1,031 962 40,100 40,150 1,131 1,039 34,150 34,200 933 885 37,150 37,200 1,033 963 40,150 40,200 1,133 1,041 34,200 34,250 934 886 37,200 37,250 1,035 964 40,200 40,250 1,135 1,042 34,250 34,300 936 888 37,250 37,300 1,036 965 40,250 40,300 1,136 1,043 34,300 34,350 938 889 37,300 37,350 1,038 967 40,300 40,350 1,138 1,044 34,350 34,400 939 890 37,350 37,400 1,040 968 40,350 40,400 1,140 1,046 34,400 34,450 941 892 37,400 37,450 1,041 969 40,400 40,450 1,141 1,047 34,450 34,500 943 893 37,450 37,500 1,043 971 40,450 40,500 1,143 1,048 34,500 34,550 944 894 37,500 37,550 1,045 972 40,500 40,550 1,145 1,050 34,550 34,600 946 895 37,550 37,600 1,046 973 40,550 40,600 1,146 1,051 34,600 34,650 948 897 37,600 37,650 1,048 974 40,600 40,650 1,148 1,052 34,650 34,700 949 898 37,650 37,700 1,050 976 40,650 40,700 1,150 1,053 34,700 34,750 951 899 37,700 37,750 1,051 977 40,700 40,750 1,151 1,055 34,750 34,800 953 901 37,750 37,800 1,053 978 40,750 40,800 1,153 1,056 34,800 34,850 954 902 37,800 37,850 1,055 980 40,800 40,850 1,155 1,057 34,850 34,900 956 903 37,850 37,900 1,056 981 40,850 40,900 1,156 1,059 34,900 34,950 958 905 37,900 37,950 1,058 982 40,900 40,950 1,158 1,060 34,950 35,000 959 906 37,950 38,000 1,060 984 40,950 41,000 1,160 1,061

$35,000 Your Tax Is

$38,000 Your Tax Is

$41,000 Your Tax Is

35,000

35,050 961 907

38,000

38,050 1,061 985

41,000

41,050 1,161 1,063 35,050 35,100 963 908 38,050 38,100 1,063 986 41,050 41,100 1,163 1,064 35,100 35,150 964 910 38,100 38,150 1,065 987 41,100 41,150 1,165 1,065 35,150 35,200 966 911 38,150 38,200 1,066 989 41,150 41,200 1,166 1,066 35,200 35,250 968 912 38,200 38,250 1,068 990 41,200 41,250 1,168 1,068 35,250 35,300 969 914 38,250 38,300 1,070 991 41,250 41,300 1,170 1,069 35,300 35,350 971 915 38,300 38,350 1,071 993 41,300 41,350 1,171 1,070 35,350 35,400 973 916 38,350 38,400 1,073 994 41,350 41,400 1,173 1,072 35,400 35,450 974 918 38,400 38,450 1,075 995 41,400 41,450 1,175 1,073 35,450 35,500 976 919 38,450 38,500 1,076 997 41,450 41,500 1,176 1,074 35,500 35,550 978 920 38,500 38,550 1,078 998 41,500 41,550 1,178 1,075 35,550 35,600 979 921 38,550 38,600 1,080 999 41,550 41,600 1,180 1,077 35,600 35,650 981 923 38,600 38,650 1,081 1,000 41,600 41,650 1,181 1,078 35,650 35,700 983 924 38,650 38,700 1,083 1,002 41,650 41,700 1,183 1,079 35,700 35,750 984 925 38,700 38,750 1,085 1,003 41,700 41,750 1,185 1,081 35,750 35,800 986 927 38,750 38,800 1,086 1,004 41,750 41,800 1,186 1,082 35,800 35,850 988 928 38,800 38,850 1,088 1,006 41,800 41,850 1,188 1,083 35,850 35,900 989 929 38,850 38,900 1,090 1,007 41,850 41,900 1,190 1,085 35,900 35,950 991 930 38,900 38,950 1,091 1,008 41,900 41,950 1,192 1,086 35,950 36,000 993 932 38,950 39,000 1,093 1,009 41,950 42,000 1,193 1,087

57

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $42,000 Your Tax Is $45,000 Your Tax Is $48,000 Your Tax Is

42,000

42,050 1,195 1,088

45,000

45,050 1,295 1,166

48,000

48,050 1,395 1,244 42,050 42,100 1,197 1,090 45,050 45,100 1,297 1,167 48,050 48,100 1,397 1,245 42,100 42,150 1,198 1,091 45,100 45,150 1,298 1,169 48,100 48,150 1,399 1,246 42,150 42,200 1,200 1,092 45,150 45,200 1,300 1,170 48,150 48,200 1,400 1,248 42,200 42,250 1,202 1,094 45,200 45,250 1,302 1,171 48,200 48,250 1,402 1,249 42,250 42,300 1,203 1,095 45,250 45,300 1,303 1,173 48,250 48,300 1,404 1,250 42,300 42,350 1,205 1,096 45,300 45,350 1,305 1,174 48,300 48,350 1,405 1,252 42,350 42,400 1,207 1,098 45,350 45,400 1,307 1,175 48,350 48,400 1,407 1,253 42,400 42,450 1,208 1,099 45,400 45,450 1,308 1,177 48,400 48,450 1,409 1,254 42,450 42,500 1,210 1,100 45,450 45,500 1,310 1,178 48,450 48,500 1,410 1,256 42,500 42,550 1,212 1,101 45,500 45,550 1,312 1,179 48,500 48,550 1,412 1,257 42,550 42,600 1,213 1,103 45,550 45,600 1,313 1,180 48,550 48,600 1,414 1,258 42,600 42,650 1,215 1,104 45,600 45,650 1,315 1,182 48,600 48,650 1,415 1,259 42,650 42,700 1,217 1,105 45,650 45,700 1,317 1,183 48,650 48,700 1,417 1,261 42,700 42,750 1,218 1,107 45,700 45,750 1,318 1,184 48,700 48,750 1,419 1,262 42,750 42,800 1,220 1,108 45,750 45,800 1,320 1,186 48,750 48,800 1,420 1,263 42,800 42,850 1,222 1,109 45,800 45,850 1,322 1,187 48,800 48,850 1,422 1,265 42,850 42,900 1,223 1,110 45,850 45,900 1,323 1,188 48,850 48,900 1,424 1,266 42,900 42,950 1,225 1,112 45,900 45,950 1,325 1,189 48,900 48,950 1,425 1,267 42,950

43,000

1,227 1,113 45,950 46,000 1,327 1,191 48,950 49,000 1,427 1,268 $43,000 Your Tax Is $46,000 Your Tax Is $49,000 Your Tax Is

43,000

43,050 1,228 1,114

46,000

46,050 1,328 1,192

49,000

49,050 1,429 1,270 43,050 43,100 1,230 1,116 46,050 46,100 1,330 1,193 49,050 49,100 1,430 1,271 43,100 43,150 1,232 1,117 46,100 46,150 1,332 1,195 49,100 49,150 1,432 1,272 43,150 43,200 1,233 1,118 46,150 46,200 1,333 1,196 49,150 49,200 1,434 1,274 43,200 43,250 1,235 1,120 46,200 46,250 1,335 1,197 49,200 49,250 1,435 1,275 43,250 43,300 1,237 1,121 46,250 46,300 1,337 1,199 49,250 49,300 1,437 1,276 43,300 43,350 1,238 1,122 46,300 46,350 1,338 1,200 49,300 49,350 1,439 1,278 43,350 43,400 1,240 1,123 46,350 46,400 1,340 1,201 49,350 49,400 1,440 1,279 43,400 43,450 1,242 1,125 46,400 46,450 1,342 1,202 49,400 49,450 1,442 1,280 43,450 43,500 1,243 1,126 46,450 46,500 1,343 1,204 49,450 49,500 1,444 1,281 43,500 43,550 1,245 1,127 46,500 46,550 1,345 1,205 49,500 49,550 1,445 1,283 43,550 43,600 1,247 1,129 46,550 46,600 1,347 1,206 49,550 49,600 1,447 1,284 43,600 43,650 1,248 1,130 46,600 46,650 1,348 1,208 49,600 49,650 1,449 1,285 43,650 43,700 1,250 1,131 46,650 46,700 1,350 1,209 49,650 49,700 1,450 1,287 43,700 43,750 1,252 1,132 46,700 46,750 1,352 1,210 49,700 49,750 1,452 1,288 43,750 43,800 1,253 1,134 46,750 46,800 1,353 1,211 49,750 49,800 1,454 1,289 43,800 43,850 1,255 1,135 46,800 46,850 1,355 1,213 49,800 49,850 1,455 1,290 43,850 43,900 1,257 1,136 46,850 46,900 1,357 1,214 49,850 49,900 1,457 1,292 43,900 43,950 1,258 1,138 46,900 46,950 1,359 1,215 49,900 49,950 1,459 1,293 43,950 44,000 1,260 1,139 46,950 47,000 1,360 1,217 49,950 50,000 1,460 1,294 $44,000 Your Tax Is $47,000 Your Tax Is End of Optional Tables

44,000

44,050 1,262 1,140

47,000

47,050 1,362 1,218 44,050 44,100 1,263 1,142 47,050 47,100 1,364 1,219 44,100 44,150 1,265 1,143 47,100 47,150 1,365 1,221 44,150 44,200 1,267 1,144 47,150 47,200 1,367 1,222 44,200 44,250 1,268 1,145 47,200 47,250 1,369 1,223 44,250 44,300 1,270 1,147 47,250 47,300 1,370 1,224 44,300 44,350 1,272 1,148 47,300 47,350 1,372 1,226 44,350 44,400 1,273 1,149 47,350 47,400 1,374 1,227 44,400 44,450 1,275 1,151 47,400 47,450 1,375 1,228 44,450 44,500 1,277 1,152 47,450 47,500 1,377 1,230 44,500 44,550 1,278 1,153 47,500 47,550 1,379 1,231 44,550 44,600 1,280 1,154 47,550 47,600 1,380 1,232 44,600 44,650 1,282 1,156 47,600 47,650 1,382 1,233 44,650 44,700 1,283 1,157 47,650 47,700 1,384 1,235 44,700 44,750 1,285 1,158 47,700 47,750 1,385 1,236 44,750 44,800 1,287 1,160 47,750 47,800 1,387 1,237 44,800 44,850 1,288 1,161 47,800 47,850 1,389 1,239 44,850 44,900 1,290 1,162 47,850 47,900 1,390 1,240 44,900 44,950 1,292 1,164 47,900 47,950 1,392 1,241 44,950 45,000 1,293 1,165 47,950 48,000 1,394 1,243 58

2021 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 Tables X and 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 2021. In this case, you must file using Form 140. All Part-Year Residents and Nonresidents: You must use Tax Tables X and Y to figure your tax. NOTE: Tax Tables X and Y have been created to apply only to the regular individual income tax, which is reported on the following lines: line 46a (Form 140); line 56a (Form 140PY); line 56a (Form 140NR); or line 37a (Form 140X). The surcharge tax is not included in tables below. The surcharge is 3.5% of the taxable income amount that is over $250,000 if the filing method is either single or married filing separate or the taxable income is over $500,000 if the filing method is either married filing joint or head of household. The surcharge amount is reported on line 46b (Form 140); line 56b (Form 140PY); line 56b (Form 140NR); or line 37b (Form 140X). See computation examples below each table. Table X – Use Table X if Your Filing Status is Single or Married Filing Separate Taxable Income column (c) Taxable Income in excess of column (a) X column (d) Tax Rate + column (e) Tax on the amount in column (a) Column (a) Is over: Column (b) But not over: 0 $27,808 (Taxable income minus $0) X 2.59% + $0 $27,808 $55,615 (Taxable income minus $27,808) X 3.34% + $720 $55,615 $166,843 (Taxable income minus $55,615) X 4.17% + $1,649 $166,843 $250,000 (Taxable income minus $166,843) X 4.5% + $6,287 $250,000 (Taxable income minus $250,000) X 1.00% + $10,029 Example: Single filer $350,000 in taxable income Regular tax liability reported on line 46a (Form 140); line 56a (Form 140PY or Form 140NR); or line 37a (Form 140X) = $10,029 + ((350,000-250,000) X 0.01) = $11,029 Surcharge tax liability reported on line 46b (Form 140); line 56b (Form 140PY or Form 140NR); or line 37b (Form 140X) = (350,000 – 250,000) X 0.035) = $3,500 Table Y – Use Table Y if Your Filing Status is Married Filing Joint or Head of Household Taxable Income column (c) Taxable Income in excess of column (a) X column (d) Tax Rate + column (e) Tax on the amount in column (a) Column (a) Is over: Column (b) But not over: $0 $55,615 (Taxable income minus $0) X 2.59% + $0 $55,615 $111,229 (Taxable income minus $55,615) X 3.34% + $1,440 $111,229 $333,684 (Taxable income minus $111,229) X 4.17% + $3,298 $333,684 $500,000 (Taxable income minus $333,684) X 4.5% + $12,574 $500,000 (Taxable income minus $500,000) X 1.00% + $20,059 Example: MFJ filer $1,000,000 in taxable income Regular tax liability reported on line 46a (Form 140); or line 56a (Form 140PY or Form 140NR); or line 37a (Form 140X) = $20,059 + ((1,000,000-500,000) X 0.01) = $25,059 Surcharge tax liability reported on line 46b (Form 140); line 56b (Form 140PY or Form 140NR); or line 37b (Form 140X) = (1,000,000 – 500,000) X 0.035) = $17,500 59

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 when you file your state and federal taxes. Tax Year 2021 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $21,430 ($27,380 if MFJ) $1,502 1 $42,158 ($48,108 if MFJ) $3,618 2 $47,915 ($53,865 if MFJ) $5,980 3 or more $51,464 ($57,414 if MFJ) $6,728 *your age 25 - 64 MFJ = Married Filed Jointly Tax Year 2021 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 2021 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 60

DO YOU QUALIFY FOR AN ARIZONA TAX CREDIT? You may claim the INCREASED EXCISE TAX CREDIT if: you are an Arizona resident Up to $100 per household 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 2021 to a county, state or federal prison Faster refunds when you E-File and select the Direct Deposit option! BE SURE TO USE WWW.AZDOR.GOV TO ACCESS YOUR PREFERRED SOFTWARE VENDOR TO ENSURE FREE FILING FOR YOUR FEDERAL AND STATE RETURNS. Do-It-Yourself using the Internet www.azdor.gov Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box YOU MAY QUALIFY TO FILE YOUR FEDERAL AND ARIZONA INDIVIDUAL INCOME TAX RETURNS FOR FREE!!! 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

QUICK AND EASY ACCESS TO TAX HELP AND FORMS 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 For details & eligiblity FREE E-File Available ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 CONTENTS 140 CREDITS Credits from Form 301.......... 44 Family income tax credit....... 42 Increased excise tax credit.... 45 Property tax credit................. 46 Credit for taxes paid to another state or country........ 44 DEDUCTIONS Itemized deductions.............. 41 Standard deduction............... 41 EXEMPTIONS Age 65 or older...................... 14, 40 Blind...................................... 14, 40 Dependents............................ 15 Qualifying parents and grandparents......................... 14, 41 FILING INFORMATION Do you have to file................. 9 Estimated tax......................... 47 Filing extensions................... 11 Penalties and interest............ 11 When to file........................... 11 Mailing your return............... 50 FILING STATUS All filing statuses................... 13, 14 INCOME Additions to income.............. 16-19 Federal adjusted gross income................................... 16 Subtractions from income..... 19-24 TAX TABLES Optional tax tables................ 53 Tables X and Y....................... 59 Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. Due to the ongoing COVID-19 Pandemic, ADOR’s in-person lobby services are by appointment only. Visit azdor.gov for the latest updates on lobby restrictions. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928...... (800) 352-4090

Arizona Form 2021 Resident Personal Income Tax Return 140

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, select Reports, Statistics and Legal Research from the main menu, 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, click on Reports, Statistics and Legal Research from the main menu, and then click on Publications in the left hand column. 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 and pay by April 18, 2022 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 online filing sources. ** For free e-file requirements, check out our website at www.azdor.gov. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see page 28 for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2021 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are:

and your gross income is more than: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2021: • 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 (including nonresident aliens), 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 2021, 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 and enter the date of death after the decedent's name. If your spouse died in 2021 and you did not remarry in 2021 or if your spouse died in 2022 before filing a return for 2021, you may file a joint return. If your spouse died in 2021, the joint return should show your spouse's 2021 income before death and your income for all of 2021. If your spouse died in 2022, before filing the 2021 return, the joint return should show all of your income and all of your spouse's income for 2021. 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. 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.

Arizona Form 140 3 What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2021 calendar year tax return is due no later than midnight, April 15, 2022. However, April 15, 2022 falls on a federal holiday, you have until Monday, April 18, 2022 to timely file your 2021 tax return. File your return as soon as you can after January 1, 2022, but no later than April 18, 2022. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2021 calendar year tax return, your due date is October 15, 2022. However, October 15, 2022 falls on a Saturday, you have until Monday, October 17, 2022 to timely file your 2021 tax return. 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 18, 2022. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due dates. 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 2021 calendar year return by April 18, 2022, 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 140. 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. 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

Arizona Form 140 4 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 and 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 2022? You must make Arizona estimated income tax payments during 2022 if: Your filing status is: AND your Arizona gross income for 2021 was greater than: AND your Arizona gross income for 2022 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2021, you must make estimated payments during 2022 unless you are sure you will not meet the threshold for 2022. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2021 Form 140. 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. 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 26 for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. 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. DO YOU HAVE A COMPLICATED RETURN?

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Arizona Form 140 5 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 in 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 also 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 140. 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, 2021. It does not matter whether or not you were living with your spouse. You may file an Arizona joint return, even if you and your spouse filed separate federal returns. You may file a joint return if your spouse died during 2021 and you did not remarry in 2021. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on his/her own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2021, you may choose to file a separate return. You may file a separate Arizona 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both separate returns. For more information, see the

Arizona Form 140 6 department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2021. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2021, and you did not remarry in 2021, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2022 (born 1/1/1957), that person is considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2021 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2021 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2021 and neither of you are claimed as a dependent by another taxpayer.

• If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse was partially blind as of December 31, 2021, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc.

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2021. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principal residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2021. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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?

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2021 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2022?" on page 4. Arizona Small Business Income Tax Return Beginning with tax year 2021, individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140-SBI and instructions. How do I Elect to Report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax returns, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Complete lines 4 through 10 on Form 140-SBI to determine the amount to enter on line 13 (Form 140). If you are not making this election, enter “0” on line 13. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12.

Additions to Income Line 15 - Non-Arizona Municipal Interest If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election, do not make the addition here, make it on the 140-SBI tax return. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18, complete the schedule on page 5 of your tax return, Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return

Arizona Form 140 9 with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2021 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2021, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2021, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2021 was more than $3,000. • You took a deduction for the amount repaid on your 2021 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F (a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2021, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F (b). Adjustment for Net Operating Loss Due to Claim of Right You must addback the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G. Addition to S Corporation Income Due to Claiming Pass- Through Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. 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. You must include an amount on this line when claiming any of the following Arizona credits: • Agricultural Water Conservation System Credit (Form 312) • Pollution Control Credit (Form 315)

Arizona Form 140 10 H. Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2021 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal, which is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship or allowance or payment described in IRC § 135(d)(1)(B) or (C), if received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of the designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Instead, the taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can A Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can A Capital Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident?

Arizona Form 140 11 M. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not make the addition here. Make it on the Small Business Income Tax Return. If you take a subtraction on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8, you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, Other Subtractions from Arizona Gross Income”, item “R”. 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. P. Other Adjustments Related to Tax Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. You may also need to make an addition if you claimed certain tax credits. Call one of the numbers listed on page 1 of these instructions if you claimed any of the following: • Agricultural Water Conservation System credit (Form 312) • Pollution Control Credit. (Form 315) • Agricultural Pollution Control Equipment Credit. (Form 325) Q. Other Adjustments If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Other adjustments may be necessary. For example, you must addback 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. R. Total Other Additions to Arizona Gross Income Add all amounts from page 5 and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24, if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero (0) on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss)

Arizona Form 140 12 reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero (0). Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011 Multiply the amount on line 23 by 25% (.25) and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item R) that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011 and included in federal adjusted gross income. For more information, see the worksheet on page 29. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example, a mutual fund) for the current tax year but the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011 for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund, including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 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 for these assets depends on the method used to compute the depreciation for these assets.

Arizona Form 140 13 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona law, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States Beginning with tax year 2021, if you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If both you and your spouse each received such income, each spouse may subtract 100% of the amount received.

Arizona Form 140 14 Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social Security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such Social Security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves is not income received for active service as a National Guard member or a Reserve member, even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves.

NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 carryforward would have been allowed as a deduction on your 2021 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return). If you are married filing separate returns, either you or your spouse may take the subtraction or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2021, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2021, they may subtract only $8,000 on their 2021 joint tax return.

Arizona Form 140 15 You may take a subtraction for the following: • A contribution that you made during 2021 to a plan that existed before 2021. • A contribution that you made during 2021 to a plan established in another state. • A contribution that you made in 2021 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different one (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE) Accounts You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience (ABLE), Account during the taxable year on behalf of the designated beneficiary if such contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See the example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are reporting adjustments on 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting an adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona or any political subdivision of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take a subtraction for converting an existing fireplace to one of the following: • a qualified wood stove; • a qualified wood fireplace; or

Arizona Form 140 16 • 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2021 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2021, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2021. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2021. Do not include any amount that is subject to tax by both Arizona and another state in 2021. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona law allows a subtraction for qualified crop gifts made during 2021 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. For property that is sold or otherwise disposed of during the taxable year by a taxpayer who has complied with the

Arizona Form 140 17 requirement to add back all depreciation for 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) if 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of adult use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of adult use products shown on your Form 120S Schedule K-1, line 7.

Arizona Form 140 18 R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI. To take this subtraction, you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, Other Additions to Arizona Gross Income, item “O”. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6 and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41 or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2021, 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. 2. In 2021, 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, 2022 (born 1/1/1957), that person would be considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2021. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result.

Arizona Form 140 19 Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41, you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter zero (0). Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 Line 44 - 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 taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X & Y or the Optional Tax Tables. Line 46a - Tax Amount Enter the tax from either Tax Tables X and Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 46b Do not enter an amount on this line. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 30. Line 48 - Subtotal of Tax Add lines 46a and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49, you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) is more than $200,000; and for married taxpayers filing a joint return whose federal adjusted gross income is more than $400,000.

Arizona Form 140 20 Complete the following tables to compute your allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household, is your federal adjusted gross income on page 1, line 12 more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12 more than $400,000? Yes No • 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 3 on page 2, line 49. • If you answered “Yes”, you are required to reduce the amount of credit computed in Table I. Complete Table III or Table IV as applicable, then go to Table V. Table III 2021 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 12…………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2021 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit out for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4.

Arizona Form 140 21 Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8 is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4.

Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575

Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000

Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $

Arizona Form 140 22 Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form and instructions for which credits must claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or countries on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 properly established can be carried forward for the respective five year carryforward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 who 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carryforward period. 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.

Arizona Form 140 23 Renewable Energy Production Tax Credit You may qualify for this credit if you produced electricity using a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 353 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 61 on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter zero (0). Totaling Payments and Refundable Credits Line 53 - 2021 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2021 Arizona Estimated Tax Payments Including Amount Applied from Your 2020 Return and Arizona Claim of Right Use this line if you did any of the following: • made 2021 estimated income tax payments to Arizona or • applied any of your refund from your 2020 Arizona tax return to 2021 estimated taxes for Arizona or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2021 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2021, but are filing separate 2021 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2021 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2021 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status, which means: • If you are married filing a joint return or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2021 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2021 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit.

Arizona Form 140 24 For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17 on line 56, and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and are claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $ 100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2021 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: SSI Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2021. • You paid property tax on your Arizona home in 2021, you paid rent on taxable property for the entire year, or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2022. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58.

Arizona Form 140 25 2021 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

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 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to Be Applied to 2022 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2022, you cannot use that amount to pay any tax that is later found to be due for 2021. You also may not claim a refund for that amount until you file your 2022 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70.

Arizona Form 140 26 Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2021 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2022. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who, for federal purposes, reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero (0), enter the amount owed on line 80. 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 that 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. Write to: Refund Desk, Arizona Department of Revenue, PO Box 29216, Phoenix, AZ 85038-9216. Include your SSN in your letter. You must have made Arizona estimated income tax payments during 2021 if: Your filing status is: AND Your Arizona gross income for 2020 was greater than: AND Your Arizona gross income for 2021 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000

Arizona Form 140 27 Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, 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 2021. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments.

Arizona Form 140 28 Complete Arizona Form 140-IA and mail the completed form to the address listed on 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 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2022. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are is on the 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. • 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 Place pages in the order shown on the next column. • If you are filing Arizona Form 140-SBI, Small Business Income, place this form before Form 140. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you completed Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, place after page 6. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return.

Where Should I Mail My Return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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

If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to: Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns to:

Arizona Department of Revenue PO Box 52138 Phoenix, AZ 85072-2138 Copy of other State or Country return (if claiming Credit 309) Arizona Claim of Right Arizona Schedule A (if required) Form 301 and 301-SBI (if filing) Form 140PTC (if required)

Form 140, pages 5 and 6 (if required) Form 140, page 4 (if required) Form 140, page 3 (if required) Form 140, pages 1 and 2 Form 203 (if filing) Form 131 (if filing) Copy of federal 1040 Schedule A Credit Forms 308-I, 349 (if required) Nonrefundable Credit Forms)

Arizona Form 140 29 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 18, 2022. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, review 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 2021 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.

Arizona Form 140 30

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

2021 Original return 2021 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” …………………………………………………………………………………….. 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………………. 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 gains or (losses) in this worksheet.

Arizona Form 2021 Resident Personal Income Tax Return 140

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, select Reports, Statistics and Legal Research from the main menu, 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, click on Reports, Statistics and Legal Research from the main menu, and then click on Publications in the left hand column. 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 and pay by April 18, 2022 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 online filing sources. ** For free e-file requirements, check out our website at www.azdor.gov. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see page 28 for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2021 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are:

and your gross income is more than: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2021: • 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 (including nonresident aliens), 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 2021, 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 and enter the date of death after the decedent's name. If your spouse died in 2021 and you did not remarry in 2021 or if your spouse died in 2022 before filing a return for 2021, you may file a joint return. If your spouse died in 2021, the joint return should show your spouse's 2021 income before death and your income for all of 2021. If your spouse died in 2022, before filing the 2021 return, the joint return should show all of your income and all of your spouse's income for 2021. 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. 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.

Arizona Form 140 3 What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2021 calendar year tax return is due no later than midnight, April 15, 2022. However, April 15, 2022 falls on a federal holiday, you have until Monday, April 18, 2022 to timely file your 2021 tax return. File your return as soon as you can after January 1, 2022, but no later than April 18, 2022. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2021 calendar year tax return, your due date is October 15, 2022. However, October 15, 2022 falls on a Saturday, you have until Monday, October 17, 2022 to timely file your 2021 tax return. 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 18, 2022. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due dates. 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 2021 calendar year return by April 18, 2022, 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 140. 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. 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

Arizona Form 140 4 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 and 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 2022? You must make Arizona estimated income tax payments during 2022 if: Your filing status is: AND your Arizona gross income for 2021 was greater than: AND your Arizona gross income for 2022 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2021, you must make estimated payments during 2022 unless you are sure you will not meet the threshold for 2022. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2021 Form 140. 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. 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 26 for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. 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. DO YOU HAVE A COMPLICATED RETURN?

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Arizona Form 140 5 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 in 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 also 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 140. 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, 2021. It does not matter whether or not you were living with your spouse. You may file an Arizona joint return, even if you and your spouse filed separate federal returns. You may file a joint return if your spouse died during 2021 and you did not remarry in 2021. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on his/her own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2021, you may choose to file a separate return. You may file a separate Arizona 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both separate returns. For more information, see the

Arizona Form 140 6 department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2021. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2021, and you did not remarry in 2021, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark. You may lose the exemption if you put a checkmark in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2022 (born 1/1/1957), that person is considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2021 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2021 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2021 and neither of you are claimed as a dependent by another taxpayer.

• If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse was partially blind as of December 31, 2021, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc.

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2021. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principal residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2021. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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?

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2021 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2022?" on page 4. Arizona Small Business Income Tax Return Beginning with tax year 2021, individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140-SBI and instructions. How do I Elect to Report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax returns, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Complete lines 4 through 10 on Form 140-SBI to determine the amount to enter on line 13 (Form 140). If you are not making this election, enter “0” on line 13. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12.

Additions to Income Line 15 - Non-Arizona Municipal Interest If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election, do not make the addition here, make it on the 140-SBI tax return. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18, complete the schedule on page 5 of your tax return, Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return

Arizona Form 140 9 with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2021 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2021, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2021, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2021 was more than $3,000. • You took a deduction for the amount repaid on your 2021 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F (a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2021, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F (b). Adjustment for Net Operating Loss Due to Claim of Right You must addback the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G. Addition to S Corporation Income Due to Claiming Pass- Through Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. 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. You must include an amount on this line when claiming any of the following Arizona credits: • Agricultural Water Conservation System Credit (Form 312) • Pollution Control Credit (Form 315)

Arizona Form 140 10 H. Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2021 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal, which is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship or allowance or payment described in IRC § 135(d)(1)(B) or (C), if received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of the designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Instead, the taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can A Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can A Capital Loss Incurred as a Non-Resident Be Used to Offset Income In A Year In Which the Taxpayer Is A Resident?

Arizona Form 140 11 M. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not make the addition here. Make it on the Small Business Income Tax Return. If you take a subtraction on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8, you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, Other Subtractions from Arizona Gross Income”, item “R”. 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. P. Other Adjustments Related to Tax Credits If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. You may also need to make an addition if you claimed certain tax credits. Call one of the numbers listed on page 1 of these instructions if you claimed any of the following: • Agricultural Water Conservation System credit (Form 312) • Pollution Control Credit. (Form 315) • Agricultural Pollution Control Equipment Credit. (Form 325) Q. Other Adjustments If you are making the small business election, do not make the addition here. Make it on the 140-SBI tax return. Other adjustments may be necessary. For example, you must addback 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. R. Total Other Additions to Arizona Gross Income Add all amounts from page 5 and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24, if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero (0) on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss)

Arizona Form 140 12 reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero (0). Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011 Multiply the amount on line 23 by 25% (.25) and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item R) that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011 and included in federal adjusted gross income. For more information, see the worksheet on page 29. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example, a mutual fund) for the current tax year but the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011 for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund, including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 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 for these assets depends on the method used to compute the depreciation for these assets.

Arizona Form 140 13 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona law, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States Beginning with tax year 2021, if you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If both you and your spouse each received such income, each spouse may subtract 100% of the amount received.

Arizona Form 140 14 Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social Security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such Social Security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves is not income received for active service as a National Guard member or a Reserve member, even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves.

NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 carryforward would have been allowed as a deduction on your 2021 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return). If you are married filing separate returns, either you or your spouse may take the subtraction or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2021, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2021, they may subtract only $8,000 on their 2021 joint tax return.

Arizona Form 140 15 You may take a subtraction for the following: • A contribution that you made during 2021 to a plan that existed before 2021. • A contribution that you made during 2021 to a plan established in another state. • A contribution that you made in 2021 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different one (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE) Accounts You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience (ABLE), Account during the taxable year on behalf of the designated beneficiary if such contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a maximum of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See the example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are reporting adjustments on 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting an adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona or any political subdivision of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take a subtraction for converting an existing fireplace to one of the following: • a qualified wood stove; • a qualified wood fireplace; or

Arizona Form 140 16 • 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2021, if the income required to be paid back under the claim of right is the type that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2021 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2021 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2021, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2021. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2021. Do not include any amount that is subject to tax by both Arizona and another state in 2021. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Arizona law allows a subtraction for qualified crop gifts made during 2021 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. For property that is sold or otherwise disposed of during the taxable year by a taxpayer who has complied with the

Arizona Form 140 17 requirement to add back all depreciation for 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) if 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of its business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of adult use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-Profit Basis If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of adult use products shown on your Form 120S Schedule K-1, line 7.

Arizona Form 140 18 R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI. To take this subtraction, you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, Other Additions to Arizona Gross Income, item “O”. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election, do not take the subtraction here. Take it on the 140-SBI tax return. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6 and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41 or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2021, 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. 2. In 2021, 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, 2022 (born 1/1/1957), that person would be considered to be age 65 at the end of 2021 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2021. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result.

Arizona Form 140 19 Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41, you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter zero (0). Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,550 • Married filing joint $25,100 • Married filing separate $12,550 • Head of Household $18,800 Line 44 - 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 taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X & Y or the Optional Tax Tables. Line 46a - Tax Amount Enter the tax from either Tax Tables X and Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 46b Do not enter an amount on this line. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 30. Line 48 - Subtotal of Tax Add lines 46a and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49, you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) is more than $200,000; and for married taxpayers filing a joint return whose federal adjusted gross income is more than $400,000.

Arizona Form 140 20 Complete the following tables to compute your allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household, is your federal adjusted gross income on page 1, line 12 more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12 more than $400,000? Yes No • 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 3 on page 2, line 49. • If you answered “Yes”, you are required to reduce the amount of credit computed in Table I. Complete Table III or Table IV as applicable, then go to Table V. Table III 2021 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 12…………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2021 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit out for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4.

Arizona Form 140 21 Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8 is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4.

Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575

Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000

Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $

Arizona Form 140 22 Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form and instructions for which credits must claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or countries on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 properly established can be carried forward for the respective five year carryforward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 who 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carryforward period. 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.

Arizona Form 140 23 Renewable Energy Production Tax Credit You may qualify for this credit if you produced electricity using a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carryforward period. Use Form 353 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 61 on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter zero (0). Totaling Payments and Refundable Credits Line 53 - 2021 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2021 Arizona Estimated Tax Payments Including Amount Applied from Your 2020 Return and Arizona Claim of Right Use this line if you did any of the following: • made 2021 estimated income tax payments to Arizona or • applied any of your refund from your 2020 Arizona tax return to 2021 estimated taxes for Arizona or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2021 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2021, but are filing separate 2021 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2021 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2021 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status, which means: • If you are married filing a joint return or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2021 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2021 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit.

Arizona Form 140 24 For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17 on line 56, and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and are claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $ 100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2021 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: SSI Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2021. • You paid property tax on your Arizona home in 2021, you paid rent on taxable property for the entire year, or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2022. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58.

Arizona Form 140 25 2021 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

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 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to Be Applied to 2022 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2022, you cannot use that amount to pay any tax that is later found to be due for 2021. You also may not claim a refund for that amount until you file your 2022 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70.

Arizona Form 140 26 Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2021 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2022. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who, for federal purposes, reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero (0), enter the amount owed on line 80. 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 that 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. Write to: Refund Desk, Arizona Department of Revenue, PO Box 29216, Phoenix, AZ 85038-9216. Include your SSN in your letter. You must have made Arizona estimated income tax payments during 2021 if: Your filing status is: AND Your Arizona gross income for 2020 was greater than: AND Your Arizona gross income for 2021 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000

Arizona Form 140 27 Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, 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 2021. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments.

Arizona Form 140 28 Complete Arizona Form 140-IA and mail the completed form to the address listed on 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 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2022. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are is on the 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. • 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 Place pages in the order shown on the next column. • If you are filing Arizona Form 140-SBI, Small Business Income, place this form before Form 140. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you completed Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, place after page 6. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return.

Where Should I Mail My Return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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

If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to: Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns to:

Arizona Department of Revenue PO Box 52138 Phoenix, AZ 85072-2138 Copy of other State or Country return (if claiming Credit 309) Arizona Claim of Right Arizona Schedule A (if required) Form 301 and 301-SBI (if filing) Form 140PTC (if required)

Form 140, pages 5 and 6 (if required) Form 140, page 4 (if required) Form 140, page 3 (if required) Form 140, pages 1 and 2 Form 203 (if filing) Form 131 (if filing) Copy of federal 1040 Schedule A Credit Forms 308-I, 349 (if required) Nonrefundable Credit Forms)

Arizona Form 140 29 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 18, 2022. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, review 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 2021 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.

Arizona Form 140 30

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

2021 Original return 2021 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” …………………………………………………………………………………….. 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………………. 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 gains or (losses) in this worksheet.

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE CLAIM. ADOR 10567 (21) You must file this form or Arizona Form 204 by April 15, 2022. QUALIFICATIONS FOR CREDIT (Check the boxes that apply): 4 On December 31, 2021, were you renting or did you own? If you own a mobile home but rent the space, check “Rent”.................................................... 4 Rent Own   5 Were you an Arizona resident for all of 2021? If “No”, STOP. You do not qualify........................................................................ 5 Yes No   6 Did you pay property taxes on your home, pay rent, or pay a combination of both in 2021? See instructions for qualifications. If “No”, STOP. You do not qualify........................................................................ 6   7 Is this the only Property Tax Refund being claimed in your household? If “No”, STOP. You do not qualify........................................................................ 7   8 Were you age 65 or older in 2021? Enter your birth date in box 79 above......... 8   9 Did you receive Title 16, SSI payments in 2021? If “Yes”, include proof. If you answered “No” to both 8 and 9, STOP. You do not qualify......................... 9   INCOME 10 Total Household Income: Enter the amount from page 2, Part 1, line J, column 4......................................................... 10 00 CREDIT 11 a If you lived alone, enter the amount of credit from page 2, Part 1, Schedule 1, and check the box..............................................................................................................................11a  Schedule 1

b If you lived with your spouse or one or more other persons, enter the amount of credit from page 2, Part 1, Schedule 2, and check the box.........................................................11b  Schedule 2 11 00 12 If you owned your property, enter property taxes actually paid during 2021. Include proof of property taxes paid during 2021................................................................................................................................... 12 00 13 If you rented, enter property taxes paid by your landlord on your portion of rents. Include Form 201........................... 13 00 14 Total property taxes paid in 2021. Add lines 12 and 13.................................................................................................. 14 00 15 Amount of Property Tax Credit: Enter the smaller of line 11 or line 14....................................................................... 15 00 16 If you have been claimed as a dependent on anyone else’s tax return, complete the following: Name Of Taxpayer Who Claimed You Social Security Number Address:

If you are not claimed as a dependent on anyone else’s tax return, turn the form over and complete Part 2. If someone else claims you as a dependent, skip lines 17 and 18, and complete line 19. 17 Credit for increased excise taxes from Form 140PTC, page 2, Part 2, line 6............................................................... 17 00 18 Enter the number from page 2, Part 2, line 2, here....................................................................................... 18 19 Total Credit: Add lines 15 and 17, and enter the total. See the instructions if you have to file

Arizona Form 140 or Form 140A..................................................................................................................................... 19 00 If this is your first claim for 2021, STOP HERE AND GO TO THE SIGNATURE BOX ON PAGE 2. If this is an amended claim, complete lines 20 through 22, and check box 95 at the top of the form. AMENDED 20 Enter the amount from line 5 of the worksheet on page 6 of the instructions.................................................................. 20 00 21 Additional refund: If line 19 is larger than line 20, subtract line 20 from line 19.............................................................. 21 00 22 Amount to pay: If line 19 is less than line 20, subtract line 19 from line 20. Make check payable to Arizona Department of Revenue; write your SSN on payment, and include your payment with Form 140PTC............. 22 00 Continued on page 2  3 95 Check box 95 if amending claim for tax year 2021 1 1 2 82F Check box 82F if filing under extension 79 Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if a joint claim) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Your Date of Birth M M D D Y Y Y Y Enter your SSN(s). 94 Arizona Form 140PTC Property Tax Refund (Credit) Claim FOR CALENDAR YEAR 2021 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 19A if your deposit will be ultimately placed in a foreign account; see instructions. 19A

ROUTING NUMBER ACCOUNT NUMBER

ADOR 10567 (21)

AZ Form 140PTC (2021) Page 2 of 2 Part 2 Credit for Increased Excise Taxes Do not complete Part 2 if you completed line 16 on page 1 of Form 140PTC. Do not complete Part 2 if you were sentenced for at least 60 days of 2021 to a county, state, or federal prison. Note: If you are filing a joint Property Tax Credit claim with your spouse, and you are also claiming the Excise Tax Credit on Form 140PTC, you cannot claim the Excise Tax Credit for your spouse if your spouse was sentenced for at least 60 days during 2021 to a county, state or federal prison. 1 List dependents. See the instructions. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2021 1a 1b 1c 2 Enter total number of dependents listed on lines 1a through 1c. Also, enter this amount on Form 140PTC, page 1, line 18...... 2 3 If you are married filing a joint claim, enter the number “2” here. Otherwise, enter the number “1”............................................... 3 4 Add the amount on line 2 and line 3, and enter the total................................................................................................................... 4 5 Multiply the amount on line 4 by $25, and enter the result................................................................................................................ 5 00 6 Enter the smaller of line 5 or $100. Also, enter this amount on Form 140PTC, page 1, line 17..................................................... 6 00 Your Name (as shown on page 1) Your Social Security Number Mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138   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 SIGNATURE

DATE

OCCUPATION

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 2021 Schedule 1 If you live alone, use this Schedule. 2021 Schedule 2 If you live with your spouse or another person, use this Schedule. Household Income Tax Credit Household Income Tax Credit Household Income Tax Credit Household Income Tax Credit $ 0 - 1,750 $502 $ 2,751 - 2,850 $256 $ 0 - 2,500 $502 $ 4,001 - 4,150 $256 1,751 - 1,850 479 2,851 - 2,950 234 2,501 - 2,650 479 4,151 - 4,300 234 1,851 - 1,950 457 2,951 - 3,050 212 2,651 - 2,800 457 4,301 - 4,450 212 1,951 - 2,050 435 3,051 - 3,150 189 2,801 - 2,950 435 4,451 - 4,600 189 2,051 - 2,150 412 3,151 - 3,250 167 2,951 - 3,100 412 4,601 - 4,750 167 2,151 - 2,250 390 3,251 - 3,350 145 3,101 - 3,250 390 4,751 - 4,900 145 2,251 - 2,350 368 3,351 - 3,450 123 3,251 - 3,400 368 4,901 - 5,050 123 2,351 - 2,450 345 3,451 - 3,550 100 3,401 - 3,550 345 5,051 - 5,200 100 2,451 - 2,550 323 3,551 - 3,650 78 3,551 - 3,700 323 5,201 - 5,350 78 2,551 - 2,650 301 3,651 - 3,750 56 3,701 - 3,850 301 5,351 - 5,500 56 2,651 - 2,750 279 3,751 and up 0 3,851 - 4,000 279 5,501 and up 0 Enter the amount of credit on the front of this form, line 11. Use the amount on line J, column 4, to compute your credit from the proper schedule below. Part 1 Schedule of Household Income (1) YOU (2) YOUR SPOUSE (3) OTHER PERSONS (4) TOTAL (1+2+3) A Salaries, wages, tips, etc., received in 2021............................................ A B Dividend and interest income received in 2021........................................ B C Business and farm income....................................................................... C D Gain or loss from sale or exchange of property........................................ D E Pension and annuity income. Include Arizona state and local retirement benefits, civil service, and military retirement. Do not include social security or railroad retirement benefits......................... E F Rent and royalty income........................................................................... F G S corporation, partnership, estate, and trust income................................ G H Alimony..................................................................................................... H I Other Income: Specify source on separate sheet................................... I J Total household income: Add lines A through I in column (4). Enter here and on the front of this form, line 10............................ J

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (22) AZ Form 140 (2022) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2022 OR FISCAL YEAR BEGINNING M M D D 2 0 2 2 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2022 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces.................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00

ADOR 10413 (22)

AZ Form 140 (2022) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE

DATE

OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46 Compute the tax using amount on line 45 and Tax Tables X and Y or Optional Tax Tables........................................... 46 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 32............................................................................. 47 00 48 Subtotal of tax: Add lines 46 and 47. Enter the total............................................................................................................ 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 64...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2022 AZ income tax withheld.......................................................................................................................................... 53 00 54 2022 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2022 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount..........................................581308-I 582349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2023 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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 10413 (22) AZ Form 140 (2022) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 - 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 on their Arizona tax return may increase the standard deduction amount by 27% (.27) 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2022 through December 31, 2022 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2022 Gifts by cash or check...................................................................................... 1C 00 2C 2022 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2022 for which you are claiming a credit under Arizona law for the current (2022) or prior (2021) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 27% (.27) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction.

Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e)  IF AGE 65 OR OVER (f)  IF DIED IN 2022 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2022 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (22) AZ Form 140 (2022) Page 4 of 6

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 5 of 6 2022 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6.

Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………...................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…........................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return........................... C 00 D Items Previously Deducted for Arizona Purposes...................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2022............................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years..................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................ F(b) 00 G(a) Addition for Expenses Due to Claiming Credit 312. See instructions.............................................................. G(a) 00 G(b) Addition to S Corporation Income for Expenses Due to Claiming Pass-Through Credit on Form 312. See instructions................................................................................................................................................ G(b) 00 H(a) Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Form 338) that was sold or otherwise disposed of during the tax year. See instructions.... H(a) 00 H(b) Adjusted Basis in Property for Which You Have Claimed a Credit for Agricultural Pollution Control Equipment (Form 325) that was sold or otherwise disposed of during the tax year. See instructions..... H(b) 00 H(c) Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equipment (Form 315) Before Taxable Year 2022 that was sold or otherwise disposed of during the tax year. See instructions. H(c) 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………...................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their federal adjusted gross income........................................... J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………..................................... L 00 M Americans with Disabilities Act - Access Expenditures............................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990............................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions..................................................................................................................................................................... O 00 P Entity-level Income Tax Payment. See instructions................................................................................. P 00 Q Other Adjustments Related to Tax Credits. See instructions..………………………................................. Q 00 R Other Adjustments. See instructions........................................................................................................ R 00 S Total Other Additions: Add all amounts and enter the total here and on page 1, line 18...................... S 00

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 6 of 6 2022 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns…………………………………………………………………………….......... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……....................................................... C 00 D Adoption Expense……………………………………………………………………………………………………..... D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace………………………….................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……...................................................... F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………...... G 00 H Qualified State Tuition Distributions………………………………………………………………………................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year......................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………...................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………....... K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.................................................................................................... L 00 M Long-Term Care Insurance Premiums…………………………………………...................................................... M 00 N Americans with Disabilities Act – Access Expenditures……………………………………………………….......... N 00 O Exploration Expenses Deferred before January 1, 1990.................................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1, line 7.................................................................................................................................................................... Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions................................................................................................................................................................................. R 00 S Other Adjustments - see instructions................................................................................................................... S 00 T Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... T 00

Arizona Form 2022 Resident Personal Income Tax Return (Short Form) 140A 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 select Reports, Statistics, and Legal Research from the main menu 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, Statistics and Legal Research from the main menu then click on Publications in the left-hand column. Leave the Paper Behind - e-file! • Quicker Refunds • Accurate • Proof of Acceptance • Free ** No more paper, math errors, or mailing delays if you e-file! Get your refund quicker with direct deposit option. E-file today, pay by April 18, 2023, 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, go to our website at www.azdor.gov. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see page 14 for assembly order (form sequence) information. Who Can Use Form 140A? You can use Form 140A to file for 2022 if all of the following apply to you: • You (and your spouse if married filing a joint return) are both full year residents of Arizona. • Your Arizona taxable income is less than $50,000, regardless of your filing status. • You are a calendar year filer. • You are not making any adjustments to income. • You do not itemize deductions. • The only tax credits you will claim are: • the Family Income Tax credit; • the Dependent Tax credit; • the Property Tax credit; or • the Credit for Increased Excise Taxes. • You are not claiming estimated tax payments. NOTE: You may subtract all of your active duty military pay included in your federal adjusted gross income, but you cannot do this on Form 140A. To take this subtraction, you must file your 2022 return using Arizona Form 140. For more information, see Form 140 instructions. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 • Head of Household $19,400 If you are an Arizona resident, you must report income from all sources, including out-of-state income. 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 that 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; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. 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. Do You Have to File if You Are an American Indian? You must file if you meet the Arizona filing requirements unless all of 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.

Arizona Form 140A Enrolled members of American Indian tribes that must file a return may subtract wages earned while reservation. living and working on their tribe’s If you are eligible to subtract these wages, you must file Arizona Form 140. In this case, do not file Form 140A. 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 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 on the tax treatment of spouses 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 in the Military? 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 an Arizona resident and you have to file an Arizona return, you should file using Form 140. If you were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service; to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident but are 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 Arizona Form 140NR, Nonresident Personal Income Tax Return, to report this income. For more information, see the department’s publication, Pub 704, Taxpayers in the Military. 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. See the department’s procedure, ITP 92-1, Procedure for Determining Residency. 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 Arizona tax on all income no matter where the income is earned. 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 2022: • 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. NOTE: If you are a part-year resident and married filing a joint return with your nonresident spouse, you must file Arizona Form 140NR, Nonresident Personal Income Tax Return. 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 2022 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 2022, and you did not remarry in 2022 or if your spouse died in 2023 before filing a return for 2022, you may file a joint return. If your spouse died in 2022, the joint return should show your spouse's 2022 income before death and your income for all of 2022. If your spouse died in 2023, before filing the 2022 return, the joint return should show all of your income and all of your spouse's income for 2022. 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. 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 2

Arizona Form 140A Behalf of Deceased Taxpayer. Place the completed Form 131 on top of the front of the return. What Are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2022 calendar year tax return is due no later than midnight, April 15, 2023. File your return as soon as you can after January 1, 2023, but no later than April 15, 2023. Because April 15, 2023 falls on a weekend and April 17, 2023 falls on a federal holiday, you have until Tuesday, April 18, 2023 to timely file your 2022 tax return. What if You Cannot File on Time? You may request an automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2022 calendar year tax return, your due date is October 15, 2023. Because October 15, 2023 falls on a weekend, you have until Monday, October 16, 2023 to timely file your 2022 tax return. 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. To apply for a state extension, file Arizona Form 204 by April 18, 2023. 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? As a Nonresident Alien, do not file Form 140A. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due dates. 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 2022 calendar year return by April 18, 2023, 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 may charge you a penalty. This penalty is ½ of 1% (.005) of the tax not paid for each 30-day period or a 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 140A. 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 a Form 140X for that year. 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. 3

Arizona Form 140A Option 1 You may file a Form 140X for that year. If you choose this option, you must amend 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 Line-by-Line Instructions Tips for Preparing Your Return • Make sure that you write 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 14 for assembly order. • You must complete your federal return before you can start your Arizona return. • Make sure you include your daytime telephone number. Entering Your Name, Address, and SSN Lines 1, 2, and 3 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 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. Enter your spouse’s name and SSN on the second line 1. 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. NOTE: Make sure your SSN is correct. If you are filing a joint return, also make sure you list your SSNs in the same order every year. 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. Use your current home address. The department will mail your refund 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 Name(s) 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 in the last 4 years, enter any other last name(s) that you or your spouse used when filing your return during the last 4 years. 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 also 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 140A. 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, 2022. 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 2022 and you did not remarry in 2022. See page 2 of these instructions for details. Form 140A is for full year residents only. You may not file a joint Arizona income tax return on Form 140A if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. 4

Arizona Form 140A If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. NOTE: For more information, 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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. • 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, 2022, 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. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s ruling, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns, and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. For more information, 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 publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2022. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2022, and you did not remarry in 2022, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the 14-2,

department’s Individual Income Tax Ruling, ITR Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers, for help completing your return. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person is considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2022 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2022 and not claimed as a dependent by another taxpayer. 5

Arizona Form 140A Enter "2" in box 8 if both you and your spouse were 65 or older in 2022 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2022, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind, and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if your spouse is (1) totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b through 11d) on page 1 (and Part 2 on page 3, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 3. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2022. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the listed categories which include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b through 11d For each qualifying parent and grandparent, enter the following information: a) first and last name; b) SSN; c) relationship to taxpayer; d) the number of months this person lived in your home; 6

Arizona Form 140A e) check this box if the person is age 65 or over; and f) check this box if the person died in 2022. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents who are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax credit claimed on line 21. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 3, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 3. You may claim only those individuals who qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: a) first and last name; b) SSN; 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 or 10b. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2022 federal return to figure your federal adjusted gross income. You must complete a federal return even if you do not have to file a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. Exemptions – Lines 13 through 16 Line 13 - Age 65 or Over Multiply the number you entered in box 8 by $2,100. Line 14 - Blind Multiply the number you entered in box 9 by $1,500. Line 15 - Other Exemptions NOTE: If you take an Other Exemption for an individual on line 15, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 16 or claim this individual for the dependent tax credit on line 21. In this case, do not include this individual as a dependent in Box 10b. You must complete page 3, Part 3, to compute your allowable Other Exemptions on line 15. Be sure to enter the number of individuals listed in Part 3 in the box, 15E, on line 15. 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 2022, 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. 2. In 2022, 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. 7

Arizona Form 140A Line 16 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 16 you cannot take an Other Exemption for the same individual on line 15 or claim this individual for the dependent tax credit on line 21. In this case, do not include this individual as a dependent in Box 10b. Multiply the number you entered in box 11a by $10,000. Line 17 - Arizona Adjusted Gross Income Subtract lines 13, 14, 15, and 16 from line 12. If less than zero, enter “0”. Figuring Your Tax Line 18 - Standard Deduction If your filing status is: Your standard deduction is: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 • Head of Household $19,400 Line 19 - Arizona Taxable Income Subtract line 18 from line 17 and enter the difference. If less than zero, enter “0”. Use this amount to find your tax using the Optional Tax Tables. STOP! You must file a Form 140 if your Arizona taxable income is $50,000 or more. Line 20 - Tax Amount Enter the tax from the Optional Tax Tables. Line 21 – Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 21, you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 16 or as an Other Exemption on line 15. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) 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 allowable Dependent Tax Credit. Table I (a) (b) (c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12 more than $200,000? Yes Checkbox No Checkbox If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12 more than $400,000? Yes Checkbox No Checkbox • 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 3 on page 1, line 21. • 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 (continued on page 9) 2022 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 12……………………. $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 1, line 21…………………………………. $ .00 8

Arizona Form 140A Table IV 2022 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12……………………. $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 1, line 21………………………………….. $ .00 Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 22 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may take this credit if your income does not exceed the maximum income allowed for your filing status. You may qualify for this credit even if your parents can claim you as a dependent on their income tax return. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to take this credit, complete Worksheet II in Step 4. Step 1 Enter the amount from Form 140A, page 1, line 12. $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing a separate return. Step 3 • Look at the column (a) labeled "number of dependents" and find the number of dependents you are claiming on Form 140A, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1. If the amount entered in Step 1 is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140A, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Column (a) Column (b) Number of dependents you are claiming on Form 140A, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000 Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140A, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575 Table III Single or Married Filing Separate Column (a) Column (b) Number of dependents you are claiming on Form 140A, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000 9

Arizona Form 140A Step 4 • You were not sentenced for at least 60 days of 2022 to a If you qualify to claim the credit, complete Worksheet II. county, state, or federal prison. Worksheet II You must complete Steps 1 through 3 before you complete this Worksheet. 1. Enter the number of dependents you entered on Form 140A, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. 2. If you checked filing status 4, enter the number 2. If you checked filing status 5, 6, or 7, enter the number 1. 3. Add lines 1 and 2. Enter the total. 4. Multiply the number on line 3 by $40. Enter the result. $ .00 5. If you checked filing status 4 or 5, enter $240 here. If you checked filing status 6 or 7, enter $120 here. $ .00 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140A, page 1, line 22. $ .00 Line 23 - Balance of Tax Subtract lines 21 and 22 from line 20. Enter the difference. If less than zero, enter “0”. Totaling Payments and Credits Line 24 – 2022 Arizona Income Tax Withheld Enter the 2022 Arizona income tax withheld as shown on the Form(s) W-2 from your employer. Include the Form(s) W-2 after the last page of your return only if the form shows Arizona income tax withholding NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 25 - 2022 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2022 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 26 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have an SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return or a head of household, you may claim this credit if the amount on Form 140A, line 12, is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140A, line 12, is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2022 to a county, state, or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither you nor your spouse can claim this credit. For complete information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are married filing a joint return, you may also claim a credit for your spouse if your spouse has either a valid SSN or an ITIN issued by the IRS. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN issued by the IRS. To figure your credit, complete the following worksheet. NOTE: Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 26 and enter the property tax credit from Form 140PTC, page 1, line 15, on line 27. Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140A, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140A, line 12 $12,500 or less? Check one Yes checkbox No checkbox If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet on page 11. 1. Enter the number of dependents you entered on Form 140A, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total……….. 4. Multiply the amount on line 3 by $25. Enter the result………………………… $ 5. Maximum credit………………………. $ 100 00 6. Enter the smaller of line 4 or line 5 here and also on Form 140A, page 1, line 26... $ 00 10

Arizona Form 140A NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. Line 27 - Property Tax Credit You may claim the property tax credit if you meet all of the following: 1. You were either 65 or older in 2022 or, if under age 65, you were receiving Supplemental Security Income (SSI) Title 16 income from the Social Security Administration. NOTE: SSI Title 16 income is not the normal Social Security disability. 2. You were an Arizona resident for the full year in 2022. 3. You paid property tax on your Arizona home in 2022. You paid rent on taxable property for the entire year or you did a combination of both. 4. If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see Arizona Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2023. You cannot claim this credit on an amended return if you file the amended return after the due date of your return. Figuring Your Tax Due or Overpayment Line 28 - Total Payments and Refundable Credits Add lines 24 through 27 and enter the total. Line 29 - Tax Due If line 23 is greater than line 28, you have tax due. Subtract line 28 from line 23 and enter the amount of tax due. Skip line 30. Line 30 - Overpayment If line 28 is greater than line 23, subtract line 23 from line 28 and enter the overpayment. Line 31 ­ Enter the amount of Tax Due from page 1, line 29 or the amount of Overpayment from line 30. The amount entered cannot be a negative amount. 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 32 - 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 46. Enter the amount you want to donate on line 32. 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 33 - 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 46. Enter the amount you want to donate on line 33. 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 34 - 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 46. Enter the amount you want to donate on line 34. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 35 - 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 46. Enter the amount you want to donate on line 35. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 36 - 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 46. Enter the amount you want to donate on line 36. If you donate to a political party, complete line 43. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 37 - 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 11

Arizona Form 140A return, include that amount on line 46. Enter the amount you want to donate on line 37. 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 38 - 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 46. Enter the amount you want to donate on line 38. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 39 - 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 46. Enter the amount you want to donate on line 39. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 40 - 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 46. Enter the amount you want to donate on line 40. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 41 - 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 want to donate on line 41. on line 46. Enter the amount you 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 42 – 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 46. Enter the amount you want to donate on line 42. 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. 12 Line 43 - Political Party If line 36 has an amount entered, check the box for the political party to which you wish to give. You may select only one party. If you do not select a political party, the department will return the amount on line 36. Line 44 - Total Voluntary Gifts Add lines 32 through 42 and enter the total. Figuring Your Refund or Amount Owed Line 45 - Refund If line 31 is an overpayment, subtract line 44 from line 31. Enter your refund on line 45 and skip line 46. If less than zero, enter amount owed on line 46. 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. Complete Form 822. This form is available at: azdor.gov/forms/other-forms. Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 45 into your account at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) instead of sending a check. NOTE: Check the box on line 45A if the direct deposit will ultimately be placed in a foreign account. If you check box 45A, do not enter your routing or account numbers. We will not direct deposit your refund. We will send 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.

Arizona Form 140A 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 sent instead. On the sample check above, 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 here. 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 above, 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 46 - Amount Owed If line 31 shows a tax due, add lines 31 and 44. Enter the amount you owe on line 46. If you are making voluntary gifts on lines 32 through 42 in excess of your overpayment, enter the difference on line 46. You may pay only with a check, electronic check, money order, direct debit through your software vendor 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 2022. 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 non-sufficient funds (NSF) 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 Discover, MasterCard, Visa, 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. Installment Payments If you cannot pay the full amount shown on line 46 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov. Select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 46, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2023. To limit the interest and penalty charges pay as much of the tax as possible when you file. 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 140A is not considered a valid return unless you sign it. If the return does not have the proper signatures, the department cannot send a refund check. Instructions Before Mailing • DO NOT STAPLE YOUR RETURN. • DO NOT STAPLE ANY SCHEDULE, FORM, OR PAYMENT TO YOUR RETURN. • Make sure your NAME is on the 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. 13

Arizona Form 140A • Write your SSN and tax year on the front of your check. Include your check with your return. • Do not send correspondence with your return. Mailing Your Return TO AVOID PROCESSING DELAYS: • Assemble your tax return in the order shown below. • If mailing more than one tax return, please use separate envelopes for each return. If you are mailing your return, be sure to include Form 140A, pages 1 and 2, and all other required forms. Make a copy of your return before mailing. Also make a copy of any forms and schedules that you are including 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-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. If you are mailing your return, place the pages in the following order: Form 140PTC (if required) Form 140A, page 3 (if required) required) Form 140A, page 2 Form 140A, page 1 Form 203 (if filing) Place on Top Where Should I Mail My Return? If you are sending a payment, 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 sending 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 18, 2023. The term "United States mail" includes any private delivery service designated by the United States Secretary of the Treasury pursuant to Internal Revenue Code § 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 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 14

Arizona Form 140A underreport the income shown on that return by more than 25% (.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, get federal Publication 552. Where is 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 2022 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. 15

 Pay your taxes by credit card! American Express • Visa • Discover Card • MasterCard Before using paper, E-File and select the Direct Deposit option Fast: Faster processing of your refund and money in your account sooner. In some cases, 6 times faster. 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. 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, 2022. If you use the amounts from your 2022 federal tax return to complete your Arizona return and the Legislature does not adopt the 2022 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 2022 conformity. This Booklet Contains: • Form 140 – Resident Personal Income Tax Return • Form 140 Schedule A – Itemized Deduction Adjustments • Form 204 – Extension Request 2 22 Arizona Form 140 Resident Personal Income Tax Booklet Who can use Arizona Form 140? You, and your spouse if married filing a joint return, may file Form 140 only if you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2022 if any of the following apply to you. • Your Arizona taxable income is $50,000 or more. • You received active duty military pay as a member of the U.S. Armed Forces. • You received pay for active service as a reservist or a National Guard member. • You are making adjustments to income. • You itemize deductions. • You claim tax credits other than the family income tax credit, the property tax credit or the credit for increased excise taxes. • You are claiming estimated payments. Where’s my Refund? Check your refund status at www.AZTaxes.gov

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 2022, except for changes Congress made to the federal tax code during 2022 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, 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 2023. 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 enacted after January 1, 2022.

What does this mean to you? It means that if any of the federal law changes made in 2022 apply to your 2022 return, you can opt to file your 2022 return using one of the following methods:

1. You can wait and file your 2022 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 2022 return assuming that the federal law changes will be adopted. The 2022 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 those changes, you may need to amend your 2022 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 2022 return and you file and pay the required amended return by the extended due date of your 2023 return. 3. You can file your 2022 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, 2022. • 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 those changes, you do not have to do anything more. • If Arizona adopts those changes, you may need to amend your 2022 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

2022 1 Due date for Calendar Year Filers Your 2022 individual income tax return is due by midnight on April 15, 2023. Because April 15, 2023 falls on a weekend, and April 17, 2023 falls on a federal holiday, you have until Tuesday, April 18, 2023 to timely file your 2022 tax return. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2023. Because October 15, 2023 falls on a weekend, you have until Monday, October 16, 2023 to timely file your 2022 tax return. 2022 Changes to Income Tax Forms Due to modifications to the 2022 Forms 140, 140NR and 140PY certain additions and subtractions (adjustments to Arizona Gross Income) have been moved from pages 1 and 2 to pages 5 (additions) and page 6 (subtractions). 2022 Individual Filing Threshold The filing threshold used to determine if a taxpayer must file an Arizona individual income tax return was adjusted for inflation. The filing threshold is based on a taxpayer’s filing status and federal gross income excluding certain income that Arizona does not tax. A taxpayer must file if they are: • Single and gross income is more than $12,950; • Married filing joint and gross income is more than $25,900; • Married filing separate and gross income is more than $12,950; and • Head of Household and gross income is more than $19,400. For more information and income that is excluded, see the table, Arizona Filing Requirements, provided on page 1 of the instructions for the income tax form you are filing 2022 Arizona Standard Deduction Amounts Adjusted The 2022 Arizona standard deduction amounts are: • $12,950 for a single taxpayer or a married taxpayer filing a separate return; • $25,900 for a married couple filing a joint return; and • $19,400 for individuals filing a head of household return. Change to Standard Deduction Increase for Charitable Contributions Computation For taxpayers who do not itemized deductions on their 2022 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2022, the allowable portion of your charitable contributions used to compute your Standard Deduction Increased was increased from 25% to 27% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR) 2022 Individual Income Tax Rates For 2022, Tax Tables X & Y were adjusted for inflation. Taxpayers with taxable income more than $50,000 must use Tax Tables X and Y to compute their tax liability. Part- year residents and nonresidents must also use Tax Tables X and Y to compute their 2022 tax liability regardless of their taxable income. The 2022 Optional Tax Table (for Arizona resident taxpayers with taxable income less than $50,000) was also adjusted for inflation. To determine your tax liability, see the Optional Tax Table. 2022 Arizona Small Business Income (SBI) Tax The tax rate applicable to small business taxable income reported on Forms 140-SBI, 140PY-SBI or Form 140NR- SBI was reduced from 3.5% in 2021 to 3.0% for 2022. 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 2022, the maximum current year credit is: • $623 for single or head of household taxpayers; • $1.245 for married taxpayers filing a joint return; and • $623 for married taxpayers filing a separate 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 2022, the maximum current year credit is: • $620 for single and head of household taxpayers; • $1,238 for married taxpayers filing a joint return; and • $620 for married taxpayers filing a separate return. Repealed Individual Tax Credits Beginning with tax year 2022, the following income tax credits have been repealed. Taxpayers who claimed either of these credits and established unused carryover amounts from prior tax years, may still claim the carryover amounts for the remaining 5-year carryover period allowed by the credit. • Pollution Control Credit (Form 315) • Employment by a Healthy Forest Enterprise Credit (Form 332) New Individual Tax Credits Affordable Housing Tax Credit (Form 354) Beginning with tax year 2022, Arizona allows an individual taxpayer to claim a nonrefundable tax credit for projects in

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Individual Income Tax - Highlights

2022 2 this state that qualify for the federal low-income housing tax credit under section 42 of the Internal Revenue Code (IRC) that are placed in service from and after June 30, 2022 in an amount equal to at least fifty-percent (50%) of the amount of the federal credit allowed in each taxable during the federal credit. Arizona Revised Statute § 43-1074 The tax credit may claimed on either the individual’s personal income tax return (Form 140, 140NR or 140PY) or the Small Business Income tax return, if filing. (Form 140-SBI, 140NR-SBI or 140PY-SBI) For more information, see Credit Form 354 and instructions. Pass-Through Entity (PTE) Tax (Credit Form 355) Beginning with tax year 2022, Arizona allows an individual partner or an individual shareholder of a partnership/S Corporation a nonrefundable tax credit for the taxes paid by the PTE on the individual’s behalf for their share of the income distributed to the partner/shareholder. If the allowable credit exceeds the taxes otherwise due on the claimants income, or if the there are no taxes due, the amount of the claim not used to offset taxes may be carried for not more than five consecutive taxable years as a credit against subsequent years’ income tax liability. Arizona Revised Statute § 43-1077 For more information, see Credit Form 355, Credit for Entity-Level Tax, and instructions. An individual taxpayer who claims the allowable PTE tax credit, must also adjust their Arizona gross income by adding the amount of the tax payment made by the PTE for which the tax credit is claimed. A taxpayer who is claiming this credit on their personal income tax return, the add-back adjustment is reported on page 5, “Other Additions to Arizona Gross Income” and included in the total amount reported on the income tax return. Arizona Revised Statute § 43-1021.

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Arizona Form 2022 Resident Personal Income Tax Return 140

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 select Reports, Statistics and Legal Research from the main menu 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, Statistics and Legal Research from the main menu and then click on Publications in the left hand column. 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 and pay by April 18, 2023 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2022 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are:

and your gross income is more than: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 • Head of Household $19,400 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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. 5

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2022: • 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 (including nonresident aliens), 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 2022, 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 and enter the date of death after the decedent's name. If your spouse died in 2022 and you did not remarry in 2022 or if your spouse died in 2023 before filing a return for 2022, you may file a joint return. If your spouse died in 2022, the joint return should show your spouse's 2022 income before death and your income for all of 2022. If your spouse died in 2023, before filing the 2022 return, the joint return should show all of your income and all of your spouse's income for 2022. 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. 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.

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Arizona Form 140 3 If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place both forms on top, when mailing the returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2022 calendar year tax return is due no later than midnight, April 15, 2023. File your return as soon as you can after January 1, 2023, but no later than April 15, 2023. Because April 15, 2023 falls on a weekend, and April 17th falls on a federal holiday, you have until Tuesday, April 18, 2023 to timely file your 2022 tax return. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2022 calendar year tax return, your due date is October 15, 2023. Because October 15, 2023 falls on a weekend, you have until Monday, October 16, 2023 to timely file your 2022 tax return. 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 18, 2023. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s).

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 2022 calendar year return by April 18, 2023 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file

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Arizona Form 140 4 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 and 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 2023? You must make Arizona estimated income tax payments during 2023 if: Your filing status is: AND your Arizona gross income for 2022 was greater than: AND your Arizona gross income for 2023 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2022, you must make estimated payments during 2023 unless you are sure you will not meet the threshold for 2023. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2022 Form 140. 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. 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 the last page of these instructions for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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.

DO YOU HAVE A COMPLICATED RETURN? E-file makes filing a complex return simple! E-file software offers: • easy step-by-step instructions • error detection before filing • Easy form selection • Maximum deductions For a list of approved software visit www.azdor.gov

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Arizona Form 140 5 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 in 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 also 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 140. 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, 2022. 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 2022 and you did not remarry in 2022. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2022, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes.

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Arizona Form 140 6 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2022. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2022, and you did not remarry in 2022, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person is considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2022 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2022 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2022 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2022, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. 10

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2022. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2022. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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? 11

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2022 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2023?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140- SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12.

Additions to Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26.

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Arizona Form 140 9 Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2022 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2022, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2022, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2022 was more than $3,000. • You took a deduction for the amount repaid on your 2022 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a) - Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2022, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover included in your federal income is more than the amount allowed to be taken into account for Arizona purposes. 13

Arizona Form 140 10 Include the amount by which the loss carryover included in your federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b) - Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment Credit 325) If you claim a credit for an agricultural pollution control equipment (Form 325), you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081.01. H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment Credit 315) If you claimed a credit for pollution control equipment (Form 315) before tax year 2022, you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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 14

Arizona Form 140 11 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, “R”. 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 15

Arizona Form 140 12 If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2022. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. • Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2022. Tax amounts paid in 2023 for tax year 2022 will be added-back on your 2023 tax return. These payments include any 4th QTR estimated taxes paid in January 2023 and any 2023 tax payments made with the Entity’s tax return on your behalf. Q. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325), you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. R. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. S. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income.

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Arizona Form 140 13 Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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

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Arizona Form 140 14 December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. 18

Arizona Form 140 15 Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2022 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary.

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Arizona Form 140 16 If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2022, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2022, they may subtract only $8,000 on their 2022 joint tax return. You may take a subtraction for the following: • A contribution that you made during 2022 to a plan that existed before 2022. • A contribution that you made during 2022 to a plan established in another state. • A contribution that you made in 2022 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140.

NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. 20

Arizona Form 140 17 D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140- SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2022 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2022, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2022. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2022. Do not include any amount that is subject to tax by both Arizona and another state in 2022. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election and this subtraction is directly related to small business income 21

Arizona Form 140 18 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2022 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers on page 1 of these instructions if you deferred exploration expenses determined under IRC § 617 in a 22

Arizona Form 140 19 taxable year ending before January 1, 1990 and you have not previously taken a subtraction for those expenses. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q.

S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products s shown on your Form 120S Schedule K-1, line 7. R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2022, 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. 2. In 2022, 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. 23

Arizona Form 140 20 NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person would be considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2022. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 • Head of Household $19,400 Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 27% (.27) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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. 24

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (22) AZ Form 140 (2022) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2022 OR FISCAL YEAR BEGINNING M M D D 2 0 2 2 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2022 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces..................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00 25

ADOR 10413 (22)

AZ Form 140 (2022) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE

DATE

OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46 Compute the tax using amount on line 45 and Tax Tables X and Y or Optional Tax Tables........................................... 46 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 32............................................................................. 47 00 48 Subtotal of tax: Add lines 46 and 47. Enter the total............................................................................................................ 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 64...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2022 AZ income tax withheld.......................................................................................................................................... 53 00 54 2022 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2022 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount..........................................581308-I 582349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2023 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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. 26

ADOR 10413 (22) AZ Form 140 (2022) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 - 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 on their Arizona tax return may increase the standard deduction amount by 27% (.27) 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2022 through December 31, 2022 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2022 Gifts by cash or check...................................................................................... 1C 00 2C 2022 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2022 for which you are claiming a credit under Arizona law for the current (2022) or prior (2021) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 27% (.27) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction. 27

Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e)  IF AGE 65 OR OVER (f)  IF DIED IN 2022 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2022 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (22) AZ Form 140 (2022) Page 4 of 6 28

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 5 of 6 2022 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6.

Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………...................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…........................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return........................... C 00 D Items Previously Deducted for Arizona Purposes...................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2022............................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years..................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................ F(b) 00 G(a) Addition for Expenses Due to Claiming Credit 312. See instructions.............................................................. G(a) 00 G(b) Addition to S Corporation Income for Expenses Due to Claiming Pass-Through Credit on Form 312. See instructions................................................................................................................................................ G(b) 00 H(a) Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Form 338) that was sold or otherwise disposed of during the tax year. See instructions.... H(a) 00 H(b) Adjusted Basis in Property for Which You Have Claimed a Credit for Agricultural Pollution Control Equipment (Form 325) that was sold or otherwise disposed of during the tax year. See instructions..... H(b) 00 H(c) Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equipment (Form 315) Before Taxable Year 2022 that was sold or otherwise disposed of during the tax year. See instructions. H(c) 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………...................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their federal adjusted gross income........................................... J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………..................................... L 00 M Americans with Disabilities Act - Access Expenditures............................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990............................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions..................................................................................................................................................................... O 00 P Entity-level Income Tax Payment. See instructions................................................................................. P 00 Q Other Adjustments Related to Tax Credits. See instructions..………………………................................. Q 00 R Other Adjustments. See instructions........................................................................................................ R 00 S Total Other Additions: Add all amounts and enter the total here and on page 1, line 18...................... S 00 29

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 6 of 6 2022 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns…………………………………………………………………………….......... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……....................................................... C 00 D Adoption Expense……………………………………………………………………………………………………..... D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace………………………….................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……...................................................... F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………...... G 00 H Qualified State Tuition Distributions………………………………………………………………………................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year......................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………...................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………....... K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.................................................................................................... L 00 M Long-Term Care Insurance Premiums…………………………………………...................................................... M 00 N Americans with Disabilities Act – Access Expenditures……………………………………………………….......... N 00 O Exploration Expenses Deferred before January 1, 1990.................................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1, line 7.................................................................................................................................................................... Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions................................................................................................................................................................................. R 00 S Other Adjustments - see instructions................................................................................................................... S 00 T Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... T 00 30

ADOR 10571 (22)

PAGE 1 of 2 Include with your return. Your Name as shown on Form 140 Your Social Security Number Spouse’s Name as shown on Form 140 (if filing joint) Spouse’s Social Security Number Arizona Schedule A Itemized Deduction Adjustments For Full-Year Residents Filing Form 140 2022 To itemize on your Arizona return, you must first complete a federal Schedule A even if you did not itemize on your federal return. Use Form 140 Schedule A to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. See instructions for details. 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2................................................................................... 4 00 Adjustment to Interest Deduction 5 If 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 2022 that is equal to the amount of your 2022 federal credit.................................................................................................................................................. 5 00 Adjustments to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law............................ 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 this line................................................................ 7 00 Other Adjustments 8 Amount allowed as a federal itemized deduction that relates to income not subject to Arizona tax.............. 8 00 Adjusted Itemized Deductions 9 Add the amounts on lines 3 and 5........................................................................... 9 00 10 Add the amounts on lines 4, 6, 7, and 8.................................................................. 10 00 11 Total federal itemized deductions allowed to be taken on federal return................ 11 00 12 Enter the amount from line 9 above........................................................................ 12 00 13 Add lines 11 and 12................................................................................................. 13 00 14 Enter the amount from line 10 above...................................................................... 14 00

15 Arizona itemized deductions: Subtract line 14 from line 13. Enter the difference here. Also, enter the amount on Form 140, page 2, line 43. If less than zero, enter “0”................................................................. 15 00

You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions. IMPORTANT ! 31

ADOR 10571 (22)

AZ Schedule A (2022)

PAGE 2 of 2 Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 Schedule A Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than as charitable contributions. If you claimed income taxes on your federal 1040 Schedule A, complete the following worksheet to determine the amount of your adjustment to enter on page 1, line 7. 1A Total state income 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 state income 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

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88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2022 or fiscal year beginning M M D D 2 0 2 2 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (22) 1 Tax liability for 2022. You may estimate this amount....................................................................................... 1 00 2 Arizona income tax withheld during 2022....................................................................... 2 00 3 Arizona estimated tax payments for 2022...................................................................... 3 00 4 Credits you will claim on your 2022 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, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. If you are a calendar year filer, your request for a 2022 filing extension must be postmarked on or before April 18, 2023. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six‑month individual federal filing extension. 1 1 3 2 Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code 94 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2022 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date Individual Calendar Year Filers:

This is a request for an automatic 6-month filing extension................................... October 16, 2023 Individual Fiscal Year Filers:

Enter taxable year end date and 6-month extended due date............................... A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. Note: Calendar year filers - Because October 15, 2023 falls on a weekend, you have until October 16, 2023 to file your return. M M D D Y Y Y Y M M D D Y Y Y Y 33

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2022 Form 140 Schedule A Itemized Deduction Adjustments For Full-Year Residents Only Before you complete Arizona Form 140 Schedule A, you must complete a federal Form 1040 Schedule A even if you do not itemize deductions on your 2022 federal return. You may itemize your deductions on your Arizona return even if you do not itemize on your federal return. For the most part, you can deduct those items that are allowable itemized deductions under the Internal Revenue Code (IRC). Use Form 140 Schedule A, Itemized Deduction Adjustments, to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. You must include the federal Form 1040 Schedule A with this form. General Instructions Arizona is a community property state. If you are married filing a separate return and claiming itemized deductions, see the department’s 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 Form 140 Schedule A only if any of the following items apply to you: 1. You are deducting medical and dental expenses. 2. You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates. 3. Your deductions claimed on the federal Schedule A include expenses related to income not subject to Arizona tax. 4. You are claiming an Arizona credit for any amount allowed as a charitable contribution or a state income tax deduction. If any of those items (1 through 4) apply to you, complete federal Form 1040 Schedule A, and then complete Form 140 Schedule A as instructed. Do not complete Form 140 Schedule A if those items do not apply to you. If you do not have to complete Form 140 Schedule A, enter the amount from federal Form 1040 Schedule A on Arizona Form 140, page 2, line 43. 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. In most cases, the deduction allowed on the Arizona return will be larger than the deduction allowed on the federal return. On your Arizona return, you do not have to reduce your medical expenses by a percentage of your federal adjusted gross income. In most cases, you may deduct more medical expenses on your Arizona return than you can deduct on your federal return. Complete lines 1 through 4 to deduct those expenses that were not allowed on federal return due to limitations. 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 amounts 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. For details about what types of expenses you may deduct, see federal Form 1040 Schedule A. 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 claimed this credit on your federal return (using federal Form 8396), you may deduct the amount of mortgage interest you paid in 2022 that is equal to the amount of that credit. Enter the amount of that interest on line 5. Line 6 - Adjustments to Charitable Contributions Skip line 6a if you are not claiming an Arizona tax credit for any amount allowed as a charitable contribution. 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.

35

Form 140 Schedule A Itemized Deduction Adjustments

2 For Example: If you claimed a credit on AZ Form: For:

You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A. 321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public Schools 323 Contributions to Private School Tuition Organization 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organizations - Individual 340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2021 return for a contribution that you made during 2022 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2022 return, even though you claimed the credit on your 2021 return. If you are claiming a credit on your 2022 return for a contribution made during 2023 (see Arizona Forms 321, 322, 323, 348, and 352), you must you must exclude this deduction on your 2023 return, even though you are claiming the credit on your 2022 return. Line 7 – Adjustment to State Income Taxes Arizona Revised Statutes § 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 as 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 to determine the amount of your adjustment to enter on line 7. Line 8 - Other Adjustments You may not deduct any expense that relates to income not subject to Arizona tax. You must complete line 7 if your federal Schedule A includes such expenses. Such expenses include: 1. Interest or other related expenses incurred to purchase

or carry U.S. obligations, when the income is not

subject to Arizona tax. 2. State taxes paid to other states for prior years if you

were not an Arizona resident for that prior year. 3. Employee business expenses that relate to income not

subject to Arizona tax. This list is not complete. There may be other items included in your federal Schedule A that you cannot deduct on the Arizona return. Enter the amount of expenses deductible on federal Schedule A that are allocable to income that is not subject to Arizona income tax. Lines 9 through 14 - Adjusted Itemized Deductions Complete lines 9 through 14 as instructed on the form. Line 15 – Arizona Itemized Deductions Subtract line 14 from line 13 and enter the difference. If less than zero, enter “0”. Also, enter the amount on Form 140, page 2, line 43. NOTE: The amount entered on line 15 cannot be a negative number. Entering a negative number on Form 140, line 43 may delay the processing of your return. 36

Arizona Form 2022 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 select Reports, Statistics and Legal Research from the main menu 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, Statistics and Legal Research from the main menu then click on Publications in the left-hand side column.

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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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 weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. Calendar year filers have until April 18, 2023 to file the request for an extension. This will allow you to file your return by October 16, 2023. Complete Form 204 to request an automatic 6-month extension. Write 2022 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 18, 2023 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 37

Arizona Form 204 2

April 18, 2023 even though your federal return is due on June 15, 2023. If you want to file your 2022 Arizona return after April 18, 2023 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 16, 2023. 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 16, 2023 even though your federal return will not be due until December 15, 2023. If you file your 2022 Arizona calendar year return after October 16, 2023 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 2022 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 2022. 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. 38

Arizona Form 140 21 Line 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X and Y or the Optional Tax Tables. Line 46 - Tax Amount Enter the tax from either Tax Tables X & Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 32. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) 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 allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes No • 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 3 on page 2, line 49. • 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 2022 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 12……………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2022 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

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Arizona Form 140 22 Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4.

Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4.

Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575

Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000

Step 4 If you qualify to claim the credit, complete Worksheet II. 40

Arizona Form 140 23 Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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. 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 properly established can be carried forward for the respective five year carry forward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carry forward period. 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. 41

Arizona Form 140 24 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 64, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits.

Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2022 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2022 Arizona Estimated Tax Payments Including Amount Applied from Your 2021 Return and Arizona Claim of Right Use this line if you did any of the following; • made 2022 estimated income tax payments to Arizona; or • applied any of your refund from your 2021 Arizona tax return to 2022 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2022 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2022, but are filing separate 2022 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c.

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Arizona Form 140 25 Line 55 - 2022 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2022 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2022 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2022 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column. Credit for Increased Excise Taxes Worksheet 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2022 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2022. • You paid property tax on your Arizona home in 2022. You paid rent on taxable property for the entire year or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2023. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount 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. 43

Arizona Form 140 26 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58. 2022 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

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 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2023 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62.

NOTE: If you apply any of the amount shown on line 61 to 2023, you cannot use that amount to pay any tax that is later found to be due for 2022. You also may not claim a refund for that amount until you file your 2023 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. 44

Arizona Form 140 27 Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2022 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2023. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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. You must have made Arizona estimated income tax payments during 2022 if: Your filing status is: AND Your Arizona gross income for 2021 was greater than: AND Your Arizona gross income for 2022 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000 45

Arizona Form 140 28 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 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms/other-forms. Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2022. There is no 46

Arizona Form 140 29 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2023. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are on the 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. • 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns to

Arizona Department of Revenue PO Box 52138 Phoenix, AZ 85072-2138 47

Arizona Form 140 30 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 18, 2023. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2022 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.

48

Arizona Form 140 31

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

2022 Original return 2022 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 it 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet. 49

Arizona Form 140 32

2022 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order (starting with Forms 131 and 131-SBI)

Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I and 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) AZ Schedule DFE (if reporting subtraction on Form 140, page 6)

Form 140 – pages 5 and/or 6 (if completed)

Form 140 – page 3 and 4 (if completed)

Form 140 – pages 1 and 2

Only include those forms showing Arizona income tax withholding.

Form 301-SBI and all credit forms reported on Form 301-SBI Form 140-SBI (if filing)

Form 203 (if filing)

Forms 131 and Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) 50

2022 Arizona Optional Tax Tables for Forms 140, 140A, and 140EZ If your taxable income is less than $50,000, use the Optional Tax Tables. If your taxable income is $50,000 or more, use Tax Table X or Y. Also, if your taxable income is $50,000 or more, you cannot use Form 140EZ or Form 140A to file for 2022. In this case, you must file using Form 140. To Find Your Tax: 1. Read down the income column until you find your taxable income shown on your return. Form 140, line 45 Form 140A, line 19 Form 140EZ, line 8 2. Read across until you find your filing status. Enter the tax on your return. Form 140, line 46 Form 140A, line 20 Form 140EZ, line 9 Example: Mr. and Mrs. Timely are filing a joint return. Their taxable income is $19,360 (Form 140, line 45). First, they find the $19,350-$19,400 income line. Next they find the At Least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household Your Tax Is - column for married filing jointly and read down the column. The amount shown where 19,300 19,350 493 493 the income lines and filing status column meet is $494. This is the tax amount they must enter on Form 140, line 46. 19,350 19,400 494 494 19,400 19,450 495 495 Single or Married Single or Married Single or Married But Married Filing But Married Filing But Married Filing At less Filing Jointly or At less Filing At less Filing Jointly or Jointly or least than Separately Head of Household least than Separately Head of Household least than Separately Head of Household If less than $20 tax is 0 Your Tax Is $2,000 Your Tax Is $4,000 Your Tax Is 20 50 1 1 2,000 2,050 52 52 4,000 4,050 103 103 50 100 2 2 2,050 2,100 53 53 4,050 4,100 104 104 100 150 3 3 2,100 2,150 54 54 4,100 4,150 105 105 150 200 4 4 2,150 2,200 55 55 4,150 4,200 106 106 200 250 6 6 2,200 2,250 57 57 4,200 4,250 108 108 250 300 7 7 2,250 2,300 58 58 4,250 4,300 109 109 300 350 8 8 2,300 2,350 59 59 4,300 4,350 110 110 350 400 10 10 2,350 2,400 61 61 4,350 4,400 112 112 400 450 11 11 2,400 2,450 62 62 4,400 4,450 113 113 450 500 12 12 2,450 2,500 63 63 4,450 4,500 114 114 500 550 13 13 2,500 2,550 64 64 4,500 4,550 115 115 550 600 15 15 2,550 2,600 66 66 4,550 4,600 117 117 600 650 16 16 2,600 2,650 67 67 4,600 4,650 118 118 650 700 17 17 2,650 2,700 68 68 4,650 4,700 119 119 700 750 18 18 2,700 2,750 69 69 4,700 4,750 120 120 750 800 20 20 2,750 2,800 71 71 4,750 4,800 122 122 800 850 21 21 2,800 2,850 72 72 4,800 4,850 123 123 850 900 22 22 2,850 2,900 73 73 4,850 4,900 124 124 900 950 24 24 2,900 2,950 75 75 4,900 4,950 126 126 950 1,000 25 25 2,950 3,000 76 76 4,950 5,000 127 127 $1,000 Your Tax Is $3,000 Your Tax Is $5,000 Your Tax Is 1,000 1,050 26 26 3,000 3,050 77 77 5,000 5,050 128 128 1,050 1,100 27 27 3,050 3,100 78 78 5,050 5,100 129 129 1,100 1,150 29 29 3,100 3,150 80 80 5,100 5,150 131 131 1,150 1,200 30 30 3,150 3,200 81 81 5,150 5,200 132 132 1,200 1,250 31 31 3,200 3,250 82 82 5,200 5,250 133 133 1,250 1,300 33 33 3,250 3,300 84 84 5,250 5,300 135 135 1,300 1,350 34 34 3,300 3,350 85 85 5,300 5,350 136 136 1,350 1,400 35 35 3,350 3,400 86 86 5,350 5,400 137 137 1,400 1,450 36 36 3,400 3,450 87 87 5,400 5,450 138 138 1,450 1,500 38 38 3,450 3,500 89 89 5,450 5,500 140 140 1,500 1,550 39 39 3,500 3,550 90 90 5,500 5,550 141 141 1,550 1,600 40 40 3,550 3,600 91 91 5,550 5,600 142 142 1,600 1,650 41 41 3,600 3,650 92 92 5,600 5,650 143 143 1,650 1,700 43 43 3,650 3,700 94 94 5,650 5,700 145 145 1,700 1,750 44 44 3,700 3,750 95 95 5,700 5,750 146 146 1,750 1,800 45 45 3,750 3,800 96 96 5,750 5,800 147 147 1,800 1,850 47 47 3,800 3,850 98 98 5,800 5,850 149 149 1,850 1,900 48 48 3,850 3,900 99 99 5,850 5,900 150 150 1,900 1,950 49 49 3,900 3,950 100 100 5,900 5,950 151 151 1,950 2,000 50 50 3,950 4,000 101 101 5,950 6,000 152 152 51

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $6,000 Your Tax Is $9,000 Your Tax Is $12,000 Your Tax Is 6,000 6,050 154 154 9,000 9,050 230 230 12,000 12,050 307 307 6,050 6,100 155 155 9,050 9,100 231 231 12,050 12,100 308 308 6,100 6,150 156 156 9,100 9,150 233 233 12,100 12,150 309 309 6,150 6,200 157 157 9,150 9,200 234 234 12,150 12,200 310 310 6,200 6,250 159 159 9,200 9,250 235 235 12,200 12,250 312 312 6,250 6,300 160 160 9,250 9,300 237 237 12,250 12,300 313 313 6,300 6,350 161 161 9,300 9,350 238 238 12,300 12,350 314 314 6,350 6,400 163 163 9,350 9,400 239 239 12,350 12,400 316 316 6,400 6,450 164 164 9,400 9,450 240 240 12,400 12,450 317 317 6,450 6,500 165 165 9,450 9,500 242 242 12,450 12,500 318 318 6,500 6,550 166 166 9,500 9,550 243 243 12,500 12,550 319 319 6,550 6,600 168 168 9,550 9,600 244 244 12,550 12,600 321 321 6,600 6,650 169 169 9,600 9,650 245 245 12,600 12,650 322 322 6,650 6,700 170 170 9,650 9,700 247 247 12,650 12,700 323 323 6,700 6,750 171 171 9,700 9,750 248 248 12,700 12,750 324 324 6,750 6,800 173 173 9,750 9,800 249 249 12,750 12,800 326 326 6,800 6,850 174 174 9,800 9,850 251 251 12,800 12,850 327 327 6,850 6,900 175 175 9,850 9,900 252 252 12,850 12,900 328 328 6,900 6,950 177 177 9,900 9,950 253 253 12,900 12,950 330 330 6,950 7,000 178 178 9,950 10,000 254 254 12,950 13,000 331 331 $7,000 Your Tax Is $10,000 Your Tax Is $13,000 Your Tax Is 7,000 7,050 179 179 10,000 10,050 256 256 13,000 13,050 332 332 7,050 7,100 180 180 10,050 10,100 257 257 13,050 13,100 333 333 7,100 7,150 182 182 10,100 10,150 258 258 13,100 13,150 335 335 7,150 7,200 183 183 10,150 10,200 259 259 13,150 13,200 336 336 7,200 7,250 184 184 10,200 10,250 261 261 13,200 13,250 337 337 7,250 7,300 186 186 10,250 10,300 262 262 13,250 13,300 339 339 7,300 7,350 187 187 10,300 10,350 263 263 13,300 13,350 340 340 7,350 7,400 188 188 10,350 10,400 265 265 13,350 13,400 341 341 7,400 7,450 189 189 10,400 10,450 266 266 13,400 13,450 342 342 7,450 7,500 191 191 10,450 10,500 267 267 13,450 13,500 344 344 7,500 7,550 192 192 10,500 10,550 268 268 13,500 13,550 345 345 7,550 7,600 193 193 10,550 10,600 270 270 13,550 13,600 346 346 7,600 7,650 194 194 10,600 10,650 271 271 13,600 13,650 347 347 7,650 7,700 196 196 10,650 10,700 272 272 13,650 13,700 349 349 7,700 7,750 197 197 10,700 10,750 273 273 13,700 13,750 350 350 7,750 7,800 198 198 10,750 10,800 275 275 13,750 13,800 351 351 7,800 7,850 200 200 10,800 10,850 276 276 13,800 13,850 353 353 7,850 7,900 201 201 10,850 10,900 277 277 13,850 13,900 354 354 7,900 7,950 202 202 10,900 10,950 279 279 13,900 13,950 355 355 7,950 8,000 203 203 10,950 11,000 280 280 13,950 14,000 356 356 $8,000 Your Tax Is $11,000 Your Tax Is $14,000 Your Tax Is 8,000 8,050 205 205 11,000 11,050 281 281 14,000 14,050 358 358 8,050 8,100 206 206 11,050 11,100 282 282 14,050 14,100 359 359 8,100 8,150 207 207 11,100 11,150 284 284 14,100 14,150 360 360 8,150 8,200 208 208 11,150 11,200 285 285 14,150 14,200 361 361 8,200 8,250 210 210 11,200 11,250 286 286 14,200 14,250 363 363 8,250 8,300 211 211 11,250 11,300 288 288 14,250 14,300 364 364 8,300 8,350 212 212 11,300 11,350 289 289 14,300 14,350 365 365 8,350 8,400 214 214 11,350 11,400 290 290 14,350 14,400 367 367 8,400 8,450 215 215 11,400 11,450 291 291 14,400 14,450 368 368 8,450 8,500 216 216 11,450 11,500 293 293 14,450 14,500 369 369 8,500 8,550 217 217 11,500 11,550 294 294 14,500 14,550 370 370 8,550 8,600 219 219 11,550 11,600 295 295 14,550 14,600 372 372 8,600 8,650 220 220 11,600 11,650 296 296 14,600 14,650 373 373 8,650 8,700 221 221 11,650 11,700 298 298 14,650 14,700 374 374 8,700 8,750 222 222 11,700 11,750 299 299 14,700 14,750 375 375 8,750 8,800 224 224 11,750 11,800 300 300 14,750 14,800 377 377 8,800 8,850 225 225 11,800 11,850 302 302 14,800 14,850 378 378 8,850 8,900 226 226 11,850 11,900 303 303 14,850 14,900 379 379 8,900 8,950 228 228 11,900 11,950 304 304 14,900 14,950 381 381 8,950 9,000 229 229 11,950 12,000 305 305 14,950 15,000 382 382 52

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $15,000 Your Tax Is $18,000 Your Tax Is $21,000 Your Tax Is 15,000 15,050 383 383 18,000 18,050 460 460 21,000 21,050 536 536 15,050 15,100 384 384 18,050 18,100 461 461 21,050 21,100 537 537 15,100 15,150 386 386 18,100 18,150 462 462 21,100 21,150 539 539 15,150 15,200 387 387 18,150 18,200 463 463 21,150 21,200 540 540 15,200 15,250 388 388 18,200 18,250 465 465 21,200 21,250 541 541 15,250 15,300 390 390 18,250 18,300 466 466 21,250 21,300 543 543 15,300 15,350 391 391 18,300 18,350 467 467 21,300 21,350 544 544 15,350 15,400 392 392 18,350 18,400 469 469 21,350 21,400 545 545 15,400 15,450 393 393 18,400 18,450 470 470 21,400 21,450 546 546 15,450 15,500 395 395 18,450 18,500 471 471 21,450 21,500 548 548 15,500 15,550 396 396 18,500 18,550 472 472 21,500 21,550 549 549 15,550 15,600 397 397 18,550 18,600 474 474 21,550 21,600 550 550 15,600 15,650 398 398 18,600 18,650 475 475 21,600 21,650 551 551 15,650 15,700 400 400 18,650 18,700 476 476 21,650 21,700 553 553 15,700 15,750 401 401 18,700 18,750 477 477 21,700 21,750 554 554 15,750 15,800 402 402 18,750 18,800 479 479 21,750 21,800 555 555 15,800 15,850 404 404 18,800 18,850 480 480 21,800 21,850 557 557 15,850 15,900 405 405 18,850 18,900 481 481 21,850 21,900 558 558 15,900 15,950 406 406 18,900 18,950 483 483 21,900 21,950 559 559 15,950 16,000 407 407 18,950 19,000 484 484 21,950 22,000 560 560 $16,000 Your Tax Is $19,000 Your Tax Is $22,000 Your Tax Is 16,000 16,050 409 409 19,000 19,050 485 485 22,000 22,050 562 562 16,050 16,100 410 410 19,050 19,100 486 486 22,050 22,100 563 563 16,100 16,150 411 411 19,100 19,150 488 488 22,100 22,150 564 564 16,150 16,200 412 412 19,150 19,200 489 489 22,150 22,200 565 565 16,200 16,250 414 414 19,200 19,250 490 490 22,200 22,250 567 567 16,250 16,300 415 415 19,250 19,300 492 492 22,250 22,300 568 568 16,300 16,350 416 416 19,300 19,350 493 493 22,300 22,350 569 569 16,350 16,400 418 418 19,350 19,400 494 494 22,350 22,400 571 571 16,400 16,450 419 419 19,400 19,450 495 495 22,400 22,450 572 572 16,450 16,500 420 420 19,450 19,500 497 497 22,450 22,500 573 573 16,500 16,550 421 421 19,500 19,550 498 498 22,500 22,550 574 574 16,550 16,600 423 423 19,550 19,600 499 499 22,550 22,600 576 576 16,600 16,650 424 424 19,600 19,650 500 500 22,600 22,650 577 577 16,650 16,700 425 425 19,650 19,700 502 502 22,650 22,700 578 578 16,700 16,750 426 426 19,700 19,750 503 503 22,700 22,750 579 579 16,750 16,800 428 428 19,750 19,800 504 504 22,750 22,800 581 581 16,800 16,850 429 429 19,800 19,850 506 506 22,800 22,850 582 582 16,850 16,900 430 430 19,850 19,900 507 507 22,850 22,900 583 583 16,900 16,950 432 432 19,900 19,950 508 508 22,900 22,950 585 585 16,950 17,000 433 433 19,950 20,000 509 509 22,950 23,000 586 586 $17,000 Your Tax Is $20,000 Your Tax Is $23,000 Your Tax Is 17,000 17,050 434 434 20,000 20,050 511 511 23,000 23,050 587 587 17,050 17,100 435 435 20,050 20,100 512 512 23,050 23,100 588 588 17,100 17,150 437 437 20,100 20,150 513 513 23,100 23,150 590 590 17,150 17,200 438 438 20,150 20,200 514 514 23,150 23,200 591 591 17,200 17,250 439 439 20,200 20,250 516 516 23,200 23,250 592 592 17,250 17,300 441 441 20,250 20,300 517 517 23,250 23,300 594 594 17,300 17,350 442 442 20,300 20,350 518 518 23,300 23,350 595 595 17,350 17,400 443 443 20,350 20,400 520 520 23,350 23,400 596 596 17,400 17,450 444 444 20,400 20,450 521 521 23,400 23,450 597 597 17,450 17,500 446 446 20,450 20,500 522 522 23,450 23,500 599 599 17,500 17,550 447 447 20,500 20,550 523 523 23,500 23,550 600 600 17,550 17,600 448 448 20,550 20,600 525 525 23,550 23,600 601 601 17,600 17,650 449 449 20,600 20,650 526 526 23,600 23,650 602 602 17,650 17,700 451 451 20,650 20,700 527 527 23,650 23,700 604 604 17,700 17,750 452 452 20,700 20,750 528 528 23,700 23,750 605 605 17,750 17,800 453 453 20,750 20,800 530 530 23,750 23,800 606 606 17,800 17,850 455 455 20,800 20,850 531 531 23,800 23,850 608 608 17,850 17,900 456 456 20,850 20,900 532 532 23,850 23,900 609 609 17,900 17,950 457 457 20,900 20,950 534 534 23,900 23,950 610 610 17,950 18,000 458 458 20,950 21,000 535 535 23,950 24,000 611 611 53

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $24,000 Your Tax Is $27,000 Your Tax Is $30,000 Your Tax Is 24,000 24,050 613 613 27,000 27,050 689 689 30,000 30,050 772 766 24,050 24,100 614 614 27,050 27,100 690 690 30,050 30,100 773 767 24,100 24,150 615 615 27,100 27,150 692 692 30,100 30,150 775 768 24,150 24,200 616 616 27,150 27,200 693 693 30,150 30,200 776 769 24,200 24,250 618 618 27,200 27,250 694 694 30,200 30,250 778 771 24,250 24,300 619 619 27,250 27,300 696 696 30,250 30,300 779 772 24,300 24,350 620 620 27,300 27,350 697 697 30,300 30,350 781 773 24,350 24,400 622 622 27,350 27,400 698 698 30,350 30,400 782 775 24,400 24,450 623 623 27,400 27,450 699 699 30,400 30,450 784 776 24,450 24,500 624 624 27,450 27,500 701 701 30,450 30,500 785 777 24,500 24,550 625 625 27,500 27,550 702 702 30,500 30,550 787 778 24,550 24,600 627 627 27,550 27,600 703 703 30,550 30,600 788 780 24,600 24,650 628 628 27,600 27,650 704 704 30,600 30,650 790 781 24,650 24,700 629 629 27,650 27,700 706 706 30,650 30,700 791 782 24,700 24,750 630 630 27,700 27,750 707 707 30,700 30,750 793 783 24,750 24,800 632 632 27,750 27,800 708 708 30,750 30,800 794 785 24,800 24,850 633 633 27,800 27,850 710 710 30,800 30,850 796 786 24,850 24,900 634 634 27,850 27,900 711 711 30,850 30,900 797 787 24,900 24,950 636 636 27,900 27,950 712 712 30,900 30,950 799 789 24,950 25,000 637 637 27,950 28,000 713 713 30,950 31,000 800 790 $25,000 Your Tax Is $28,000 Your Tax Is $31,000 Your Tax Is 25,000 25,050 638 638 28,000 28,050 715 715 31,000 31,050 802 791 25,050 25,100 639 639 28,050 28,100 716 716 31,050 31,100 803 792 25,100 25,150 641 641 28,100 28,150 717 717 31,100 31,150 805 794 25,150 25,200 642 642 28,150 28,200 718 718 31,150 31,200 806 795 25,200 25,250 643 643 28,200 28,250 720 720 31,200 31,250 808 796 25,250 25,300 645 645 28,250 28,300 721 721 31,250 31,300 809 798 25,300 25,350 646 646 28,300 28,350 722 722 31,300 31,350 811 799 25,350 25,400 647 647 28,350 28,400 724 724 31,350 31,400 812 800 25,400 25,450 648 648 28,400 28,450 725 725 31,400 31,450 814 801 25,450 25,500 650 650 28,450 28,500 726 726 31,450 31,500 815 803 25,500 25,550 651 651 28,500 28,550 727 727 31,500 31,550 817 804 25,550 25,600 652 652 28,550 28,600 729 729 31,550 31,600 818 805 25,600 25,650 653 653 28,600 28,650 730 730 31,600 31,650 820 806 25,650 25,700 655 655 28,650 28,700 732 731 31,650 31,700 821 808 25,700 25,750 656 656 28,700 28,750 733 732 31,700 31,750 823 809 25,750 25,800 657 657 28,750 28,800 735 734 31,750 31,800 824 810 25,800 25,850 659 659 28,800 28,850 736 735 31,800 31,850 826 812 25,850 25,900 660 660 28,850 28,900 738 736 31,850 31,900 827 813 25,900 25,950 661 661 28,900 28,950 739 738 31,900 31,950 829 814 25,950 26,000 662 662 28,950 29,000 741 739 31,950 32,000 830 815 $26,000 Your Tax Is $29,000 Your Tax Is $32,000 Your Tax Is 26,000 26,050 664 664 29,000 29,050 742 740 32,000 32,050 831 817 26,050 26,100 665 665 29,050 29,100 744 741 32,050 32,100 833 818 26,100 26,150 666 666 29,100 29,150 745 743 32,100 32,150 834 819 26,150 26,200 667 667 29,150 29,200 747 744 32,150 32,200 836 820 26,200 26,250 669 669 29,200 29,250 748 745 32,200 32,250 837 822 26,250 26,300 670 670 29,250 29,300 750 747 32,250 32,300 839 823 26,300 26,350 671 671 29,300 29,350 751 748 32,300 32,350 840 824 26,350 26,400 673 673 29,350 29,400 753 749 32,350 32,400 842 826 26,400 26,450 674 674 29,400 29,450 754 750 32,400 32,450 843 827 26,450 26,500 675 675 29,450 29,500 755 752 32,450 32,500 845 828 26,500 26,550 676 676 29,500 29,550 757 753 32,500 32,550 846 829 26,550 26,600 678 678 29,550 29,600 758 754 32,550 32,600 848 831 26,600 26,650 679 679 29,600 29,650 760 755 32,600 32,650 849 832 26,650 26,700 680 680 29,650 29,700 761 757 32,650 32,700 851 833 26,700 26,750 681 681 29,700 29,750 763 758 32,700 32,750 852 834 26,750 26,800 683 683 29,750 29,800 764 759 32,750 32,800 854 836 26,800 26,850 684 684 29,800 29,850 766 761 32,800 32,850 855 837 26,850 26,900 685 685 29,850 29,900 767 762 32,850 32,900 857 838 26,900 26,950 687 687 29,900 29,950 769 763 32,900 32,950 858 840 26,950 27,000 688 688 29,950 30,000 770 764 32,950 33,000 860 841 54

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $33,000 Your Tax Is $36,000 Your Tax Is $39,000 Your Tax Is 33,000 33,050 861 842 36,000 36,050 951 919 39,000 39,050 1,040 995 33,050 33,100 863 843 36,050 36,100 952 920 39,050 39,100 1,042 996 33,100 33,150 864 845 36,100 36,150 954 921 39,100 39,150 1,043 998 33,150 33,200 866 846 36,150 36,200 955 922 39,150 39,200 1,045 999 33,200 33,250 867 847 36,200 36,250 957 924 39,200 39,250 1,046 1,000 33,250 33,300 869 849 36,250 36,300 958 925 39,250 39,300 1,048 1,002 33,300 33,350 870 850 36,300 36,350 960 926 39,300 39,350 1,049 1,003 33,350 33,400 872 851 36,350 36,400 961 928 39,350 39,400 1,051 1,004 33,400 33,450 873 852 36,400 36,450 963 929 39,400 39,450 1,052 1,005 33,450 33,500 875 854 36,450 36,500 964 930 39,450 39,500 1,053 1,007 33,500 33,550 876 855 36,500 36,550 966 931 39,500 39,550 1,055 1,008 33,550 33,600 878 856 36,550 36,600 967 933 39,550 39,600 1,056 1,009 33,600 33,650 879 857 36,600 36,650 969 934 39,600 39,650 1,058 1,010 33,650 33,700 881 859 36,650 36,700 970 935 39,650 39,700 1,059 1,012 33,700 33,750 882 860 36,700 36,750 972 936 39,700 39,750 1,061 1,013 33,750 33,800 884 861 36,750 36,800 973 938 39,750 39,800 1,062 1,014 33,800 33,850 885 863 36,800 36,850 975 939 39,800 39,850 1,064 1,016 33,850 33,900 887 864 36,850 36,900 976 940 39,850 39,900 1,065 1,017 33,900 33,950 888 865 36,900 36,950 978 942 39,900 39,950 1,067 1,018 33,950 34,000 890 866 36,950 37,000 979 943 39,950 40,000 1,068 1,019 $34,000 Your Tax Is $37,000 Your Tax Is $40,000 Your Tax Is 34,000 34,050 891 868 37,000 37,050 980 944 40,000 40,050 1,070 1,021 34,050 34,100 893 869 37,050 37,100 982 945 40,050 40,100 1,071 1,022 34,100 34,150 894 870 37,100 37,150 983 947 40,100 40,150 1,073 1,023 34,150 34,200 896 871 37,150 37,200 985 948 40,150 40,200 1,074 1,024 34,200 34,250 897 873 37,200 37,250 986 949 40,200 40,250 1,076 1,026 34,250 34,300 899 874 37,250 37,300 988 951 40,250 40,300 1,077 1,027 34,300 34,350 900 875 37,300 37,350 989 952 40,300 40,350 1,079 1,028 34,350 34,400 902 877 37,350 37,400 991 953 40,350 40,400 1,080 1,030 34,400 34,450 903 878 37,400 37,450 992 954 40,400 40,450 1,082 1,031 34,450 34,500 904 879 37,450 37,500 994 956 40,450 40,500 1,083 1,032 34,500 34,550 906 880 37,500 37,550 995 957 40,500 40,550 1,085 1,033 34,550 34,600 907 882 37,550 37,600 997 958 40,550 40,600 1,086 1,035 34,600 34,650 909 883 37,600 37,650 998 959 40,600 40,650 1,088 1,036 34,650 34,700 910 884 37,650 37,700 1,000 961 40,650 40,700 1,089 1,037 34,700 34,750 912 885 37,700 37,750 1,001 962 40,700 40,750 1,091 1,038 34,750 34,800 913 887 37,750 37,800 1,003 963 40,750 40,800 1,092 1,040 34,800 34,850 915 888 37,800 37,850 1,004 965 40,800 40,850 1,094 1,041 34,850 34,900 916 889 37,850 37,900 1,006 966 40,850 40,900 1,095 1,042 34,900 34,950 918 891 37,900 37,950 1,007 967 40,900 40,950 1,097 1,044 34,950 35,000 919 892 37,950 38,000 1,009 968 40,950 41,000 1,098 1,045 $35,000 Your Tax Is $38,000 Your Tax Is $41,000 Your Tax Is 35,000 35,050 921 893 38,000 38,050 1,010 970 41,000 41,050 1,100 1,046 35,050 35,100 922 894 38,050 38,100 1,012 971 41,050 41,100 1,101 1,047 35,100 35,150 924 896 38,100 38,150 1,013 972 41,100 41,150 1,103 1,049 35,150 35,200 925 897 38,150 38,200 1,015 973 41,150 41,200 1,104 1,050 35,200 35,250 927 898 38,200 38,250 1,016 975 41,200 41,250 1,106 1,051 35,250 35,300 928 900 38,250 38,300 1,018 976 41,250 41,300 1,107 1,053 35,300 35,350 930 901 38,300 38,350 1,019 977 41,300 41,350 1,109 1,054 35,350 35,400 931 902 38,350 38,400 1,021 979 41,350 41,400 1,110 1,055 35,400 35,450 933 903 38,400 38,450 1,022 980 41,400 41,450 1,112 1,056 35,450 35,500 934 905 38,450 38,500 1,024 981 41,450 41,500 1,113 1,058 35,500 35,550 936 906 38,500 38,550 1,025 982 41,500 41,550 1,115 1,059 35,550 35,600 937 907 38,550 38,600 1,027 984 41,550 41,600 1,116 1,060 35,600 35,650 939 908 38,600 38,650 1,028 985 41,600 41,650 1,118 1,061 35,650 35,700 940 910 38,650 38,700 1,030 986 41,650 41,700 1,119 1,063 35,700 35,750 942 911 38,700 38,750 1,031 987 41,700 41,750 1,121 1,064 35,750 35,800 943 912 38,750 38,800 1,033 989 41,750 41,800 1,122 1,065 35,800 35,850 945 914 38,800 38,850 1,034 990 41,800 41,850 1,124 1,067 35,850 35,900 946 915 38,850 38,900 1,036 991 41,850 41,900 1,125 1,068 35,900 35,950 948 916 38,900 38,950 1,037 993 41,900 41,950 1,127 1,069 35,950 36,000 949 917 38,950 39,000 1,039 994 41,950 42,000 1,128 1,070 55

At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household At least But less than Single or Married Filing Separately Married Filing Jointly or Head of Household $42,000 Your Tax Is $45,000 Your Tax Is $48,000 Your Tax Is 42,000 42,050 1,129 1,072 45,000 45,050 1,219 1,148 48,000 48,050 1,308 1,225 42,050 42,100 1,131 1,073 45,050 45,100 1,220 1,149 48,050 48,100 1,310 1,226 42,100 42,150 1,132 1,074 45,100 45,150 1,222 1,151 48,100 48,150 1,311 1,227 42,150 42,200 1,134 1,075 45,150 45,200 1,223 1,152 48,150 48,200 1,313 1,228 42,200 42,250 1,135 1,077 45,200 45,250 1,225 1,153 48,200 48,250 1,314 1,230 42,250 42,300 1,137 1,078 45,250 45,300 1,226 1,155 48,250 48,300 1,316 1,231 42,300 42,350 1,138 1,079 45,300 45,350 1,228 1,156 48,300 48,350 1,317 1,232 42,350 42,400 1,140 1,081 45,350 45,400 1,229 1,157 48,350 48,400 1,319 1,234 42,400 42,450 1,141 1,082 45,400 45,450 1,231 1,158 48,400 48,450 1,320 1,235 42,450 42,500 1,143 1,083 45,450 45,500 1,232 1,160 48,450 48,500 1,322 1,236 42,500 42,550 1,144 1,084 45,500 45,550 1,234 1,161 48,500 48,550 1,323 1,237 42,550 42,600 1,146 1,086 45,550 45,600 1,235 1,162 48,550 48,600 1,325 1,239 42,600 42,650 1,147 1,087 45,600 45,650 1,237 1,163 48,600 48,650 1,326 1,240 42,650 42,700 1,149 1,088 45,650 45,700 1,238 1,165 48,650 48,700 1,328 1,241 42,700 42,750 1,150 1,089 45,700 45,750 1,240 1,166 48,700 48,750 1,329 1,242 42,750 42,800 1,152 1,091 45,750 45,800 1,241 1,167 48,750 48,800 1,331 1,244 42,800 42,850 1,153 1,092 45,800 45,850 1,243 1,169 48,800 48,850 1,332 1,245 42,850 42,900 1,155 1,093 45,850 45,900 1,244 1,170 48,850 48,900 1,334 1,246 42,900 42,950 1,156 1,095 45,900 45,950 1,246 1,171 48,900 48,950 1,335 1,248 42,950 43,000 1,158 1,096 45,950 46,000 1,247 1,172 48,950 49,000 1,337 1,249 $43,000 Your Tax Is $46,000 Your Tax Is $49,000 Your Tax Is 43,000 43,050 1,159 1,097 46,000 46,050 1,249 1,174 49,000 49,050 1,338 1,250 43,050 43,100 1,161 1,098 46,050 46,100 1,250 1,175 49,050 49,100 1,340 1,251 43,100 43,150 1,162 1,100 46,100 46,150 1,252 1,176 49,100 49,150 1,341 1,253 43,150 43,200 1,164 1,101 46,150 46,200 1,253 1,177 49,150 49,200 1,343 1,254 43,200 43,250 1,165 1,102 46,200 46,250 1,255 1,179 49,200 49,250 1,344 1,255 43,250 43,300 1,167 1,104 46,250 46,300 1,256 1,180 49,250 49,300 1,346 1,257 43,300 43,350 1,168 1,105 46,300 46,350 1,258 1,181 49,300 49,350 1,347 1,258 43,350 43,400 1,170 1,106 46,350 46,400 1,259 1,183 49,350 49,400 1,349 1,259 43,400 43,450 1,171 1,107 46,400 46,450 1,261 1,184 49,400 49,450 1,350 1,260 43,450 43,500 1,173 1,109 46,450 46,500 1,262 1,185 49,450 49,500 1,351 1,262 43,500 43,550 1,174 1,110 46,500 46,550 1,264 1,186 49,500 49,550 1,353 1,263 43,550 43,600 1,176 1,111 46,550 46,600 1,265 1,188 49,550 49,600 1,354 1,264 43,600 43,650 1,177 1,112 46,600 46,650 1,267 1,189 49,600 49,650 1,356 1,265 43,650 43,700 1,179 1,114 46,650 46,700 1,268 1,190 49,650 49,700 1,357 1,267 43,700 43,750 1,180 1,115 46,700 46,750 1,270 1,191 49,700 49,750 1,359 1,268 43,750 43,800 1,182 1,116 46,750 46,800 1,271 1,193 49,750 49,800 1,360 1,269 43,800 43,850 1,183 1,118 46,800 46,850 1,273 1,194 49,800 49,850 1,362 1,271 43,850 43,900 1,185 1,119 46,850 46,900 1,274 1,195 49,850 49,900 1,363 1,272 43,900 43,950 1,186 1,120 46,900 46,950 1,276 1,197 49,900 49,950 1,365 1,273 43,950 44,000 1,188 1,121 46,950 47,000 1,277 1,198 49,950 50,000 1,366 1,274 $44,000 Your Tax Is $47,000 Your Tax Is End of Optional Tables 44,000 44,050 1,189 1,123 47,000 47,050 1,278 1,199 44,050 44,100 1,191 1,124 47,050 47,100 1,280 1,200 44,100 44,150 1,192 1,125 47,100 47,150 1,281 1,202 44,150 44,200 1,194 1,126 47,150 47,200 1,283 1,203 44,200 44,250 1,195 1,128 47,200 47,250 1,284 1,204 44,250 44,300 1,197 1,129 47,250 47,300 1,286 1,206 44,300 44,350 1,198 1,130 47,300 47,350 1,287 1,207 44,350 44,400 1,200 1,132 47,350 47,400 1,289 1,208 44,400 44,450 1,201 1,133 47,400 47,450 1,290 1,209 44,450 44,500 1,202 1,134 47,450 47,500 1,292 1,211 44,500 44,550 1,204 1,135 47,500 47,550 1,293 1,212 44,550 44,600 1,205 1,137 47,550 47,600 1,295 1,213 44,600 44,650 1,207 1,138 47,600 47,650 1,296 1,214 44,650 44,700 1,208 1,139 47,650 47,700 1,298 1,216 44,700 44,750 1,210 1,140 47,700 47,750 1,299 1,217 44,750 44,800 1,211 1,142 47,750 47,800 1,301 1,218 44,800 44,850 1,213 1,143 47,800 47,850 1,302 1,220 44,850 44,900 1,214 1,144 47,850 47,900 1,304 1,221 44,900 44,950 1,216 1,146 47,900 47,950 1,305 1,222 44,950 45,000 1,217 1,147 47,950 48,000 1,307 1,223 56

2022 Arizona Tax Tables X and Y

Full-Year Residents: If your taxable income is less than $50,000, you may use the Optional Tax Tables or Tax Tables X and Y to figure your tax. If your taxable income is $50,000 or more, you must use Tax Tables X and 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 your tax return. In this case, you must file using Form 140. All Part-Year Residents (filing Form 140PY) and Nonresidents (filing Form 140NR):

You must use Tax Tables X and Y to figure your tax.

Table X Use Table X if Your Filing Status is Single or Married Filing Separate

Taxable Income column (c) Taxable Income in excess of column (a)

X column (d) Tax Rate

+ column (e) Tax on the amount in column (a) column (a)

Is over column (b)

But not over $0 $28,653 (Taxable income minus $0) X 2.55% + $0 $28,653 (Taxable income minus $28,653) X 2.98% + $731

Table Y Use Table Y if Your Filing Status is Married Filing Joint or Head of Household

Taxable Income column (c) Taxable Income in excess of column (a)

X column (d) Tax Rate

+ column (e) Tax on the amount in column (a) column (a)

Is over column (b)

But not over $0 $57,305 (Taxable income minus $0) X 2.55% + $0 $57,305 (Taxable income minus $57,305) X 2.98% + $1,461

57

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 when you file your state and federal taxes.

Tax Year 2022 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $16,480 ($22,610 if MFJ) $560 1 $43,492 ($49,622 if MFJ) $3,733 2 $49,399 ($55,529 if MFJ) $6,164 3 or more $53,057 ($59,187 if MFJ) $6,935 *your age 25 - 64 MFJ = Married Filed Jointly

Tax Year 2022 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 2022 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

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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 Up to $100 per household your federal adjusted gross income was $ 25,000 or less ($12,500 if single) you were not sentenced for at least 60 days of 2022 to a county, state or federal prison Before using paper, E-File and select the Direct Deposit option for a faster refund!

Be sure to use www.azdor.gov to access your preferred software vendor to ensure free filing for your federal and state returns. Do-It-Yourself with fillable forms. Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box. You may qualify to file your federal and Arizona individual income returns for FREE!!

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

QUICK AND EASY ACCESS TO TAX HELP AND FORMS ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 CONTENTS 140 CREDITS Credits from Form 301.......... 41 Family income tax credit....... 40 Increased excise tax credit.... 43 Property tax credit................. 43 Credit for taxes paid to another state or country........ 41 DEDUCTIONS Itemized deductions.............. 24 Standard deduction............... 24 EXEMPTIONS Age 65 or older...................... 10, 23 Blind...................................... 10, 23 Dependents............................ 11 Qualifying parents and grandparents......................... 10, 24 FILING INFORMATION Do you have to file................. 5 Estimated tax......................... 8 Filing extensions................... 7 Penalties and interest............ 7 When to file........................... 7 Mailing your return............... 47 FILING STATUS All filing statuses................... 9 INCOME Additions to income.............. 12 Federal adjusted gross income................................... 12 Subtractions from income..... 16 TAX TABLES Optional tax tables................ 51 Tables X and Y....................... 57 Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. To continue to protect the health and safety of our customers ADOR’s in-person lobby services are by appointment only. Visit azdor.gov for taxpayer support services that may be accessed by phone or computer. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928...... (800) 352-4090 PREPARING YOUR RETURN • Ensure all the necessary lines, amounts, and forms are filled out properly. Check to make sure that calculations on your return are correct as a math error can cause delays in processing your return. • Double check spelling of names. Avoid using two different names. • Make sure that you legibly write your complete 9-digit Social Security Number (SSN) on your return. Without proper identification, the Arizona Department of Revenue (ADOR) is unable to process the return. • Write clearly or use fillable forms. Handwriting can easily be mistaken and mis-typed into ADOR systems. • Enter your routing number or account number correctly in all appropriate boxes. You are responsible for this information. • Send payment with the correct return. Send the Arizona Department of Revenue payments with the state return to ADOR and the IRS payment with the federal return to the IRS. The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account. • If you are filing a joint return, enter the SSNs in the same order every year. SUBMITTING YOUR RETURN • Sign and date the return. • Do not staple any items to the return. • Make sure you use correct postage on the envelope. • Ensure all pages are sent in together as ADOR will not process partial returns. • Include your check or money order with your return. Please do not send cash. • Include a voucher with the payment if not sending it with the return. ADOR spends time researching and connecting the payment to an account if no return or voucher is included delaying the return process. • All envelopes should be addressed to Arizona Department of Revenue then add the PO Box for the area you wish to reach. • By law, ADOR must offset any refunds to certain government agencies that have a claim against you. If you received a letter informing you of the offset, please contact the agency listed in the letter. • Please allow 8-10 weeks for processing. Do not resubmit a return or submit an electronic payment if you mailed a paper check. • Payments are one of the last items to be processed. The postmark date is used to determine if income payments and returns are timely. Did You Know? When you use tax software all the hard work is done 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 • Free E-File available for those who qualify Before using paper, E-File and select the Direct Deposit option for a faster refund!

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Arizona Form 2022 Resident Personal Income Tax Return 140 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 select Reports, Statistics and Legal Research from the main menu 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, Statistics and Legal Research from the main menu and then click on Publications in the left hand column. 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 and pay by April 18, 2023 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2022 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 Head of Household $19,400 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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;

• pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2022: • 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 (including nonresident aliens), 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 2022, 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 and enter the date of death after the decedent's name. If your spouse died in 2022 and you did not remarry in 2022 or if your spouse died in 2023 before filing a return for 2022, you may file a joint return. If your spouse died in 2022, the joint return should show your spouse's 2022 income before death and your income for all of 2022. If your spouse died in 2023, before filing the 2022 return, the joint return should show all of your income and all of your spouse's income for 2022. 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. 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. 2

Arizona Form 140 If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place both forms on top, when mailing the returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2022 calendar year tax return is due no later than midnight, April 15, 2023. File your return as soon as you can after January 1, 2023, but no later than April 15, 2023. Because April 15, 2023 falls on a weekend, and April 17th falls on a federal holiday, you have until Tuesday, April 18, 2023 to timely file your 2022 tax return. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2022 calendar year tax return, your due date is October 15, 2023. Because October 15, 2023 falls on a weekend, you have until Monday, October 16, 2023 to timely file your 2022 tax return. 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 18, 2023. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s). 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 2022 calendar year return by April 18, 2023 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file 3

DO YOU HAVE A COMPLICATED RETURN?

Arizona Form 140 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 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 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 and 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 2023? You must make Arizona estimated income tax payments during 2023 if: Your filing status is: AND your Arizona gross income for 2022 was greater than: AND your Arizona gross income for 2023 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2022, you must make estimated payments during 2023 unless you are sure you will not meet the threshold for 2023. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2022 Form 140. 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. 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. 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 the last page of these instructions for the assembly order. • Make sure you include your daytime telephone number. • If filing a fiscal year return, fill in the period covered. E-file makes filing a complex return simple! E-file software offers: • easy step-by-step instructions • error detection before filing • Easy form selection • Maximum deductions For a list of approved software visit www.azdor.gov Entering Your Name, Address, and SSN Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. 4

Arizona Form 140 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 in 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 also 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 140. 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, 2022. 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 2022 and you did not remarry in 2022. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2022, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. 5

Arizona Form 140 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2022. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2022, and you did not remarry in 2022, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person is considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2022 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2022 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2022 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2022, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. 6

Arizona Form 140 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2022. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2022. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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? 7

Arizona Form 140 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2022 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2023?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140- SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. 8

Arizona Form 140 Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2022 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2022, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2022, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2022 was more than $3,000. • You took a deduction for the amount repaid on your 2022 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a) - Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2022, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover included in your federal income is more than the amount allowed to be taken into account for Arizona purposes. 9

Arizona Form 140 Include the amount by which the loss carryover included in your federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b) - Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment Credit 325) If you claim a credit for an agricultural pollution control equipment (Form 325), you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081.01. H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment Credit 315) If you claimed a credit for pollution control equipment (Form 315) before tax year 2022, you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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 10

Arizona Form 140 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 5, “O”. 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 11

Arizona Form 140 If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2022. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. • Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2022. Tax amounts paid in 2023 for tax year 2022 will be added-back on your 2023 tax return. These payments include any 4th QTR estimated taxes paid in January 2023 and any 2023 tax payments made with the Entity’s tax return on your behalf. Q. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325), you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. R. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. S. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. 12

Arizona Form 140 Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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 13

Arizona Form 140 December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. 14

Arizona Form 140 Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2022 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. 15

Arizona Form 140 If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2022, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2022, they may subtract only $8,000 on their 2022 joint tax return. You may take a subtraction for the following: • A contribution that you made during 2022 to a plan that existed before 2022. • A contribution that you made during 2022 to a plan established in another state. • A contribution that you made in 2022 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140. NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. 16

Arizona Form 140 D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140- SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2022 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2022, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2022. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2022. Do not include any amount that is subject to tax by both Arizona and another state in 2022. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election and this subtraction is directly related to small business income 17

Arizona Form 140 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2022 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers on page 1 of these instructions if you deferred exploration expenses determined under IRC § 617 in a 18

Arizona Form 140 taxable year ending before January 1, 1990 and you have not previously taken a subtraction for those expenses. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products s shown on your Form 120S Schedule K-1, line 7. R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2022, 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. 2. In 2022, 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. 19

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Arizona Form 140 NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person would be considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2022. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,950 Married filing joint $25,900 Married filing separate $12,950 Head of Household $19,400 Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 27% (.27) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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. 20

Arizona Form 140 Line 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X and Y or the Optional Tax Tables. Line 46 - Tax Amount Enter the tax from either Tax Tables X & Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 32. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) 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 allowable Dependent Tax Credit. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000? Yes Checkbox No Checkbox If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes Checkbox No Checkbox • 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 3 on page 2, line 49. • 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 2022 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 12……………… En ter whole dollar amount 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. En ter whole dollar amount 4. Enter amount from Table I, line 3, column (d) …………………………….. En ter whole dollar amount 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 result on page 2, line 49…………………………………... En ter whole dollar amount Table I (a) (b) (c) Credit amount (d) Multiply column (b) by column (c) 1. Enter number of dependents from page 1, box 10a…. $ 100 En ter whole dollar amount 2. Enter number of dependents from page 1, box 10b…. $ 25 En ter whole dollar amount 3. Credit amount before adjustment. Add lines 1 and 2. Enter total in column (d). En ter whole dollar amount All taxpayers go to Table II. 21 Table IV 2022 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… En ter whole dollar amount 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. En ter whole dollar amount 4. Enter amount from Table I, line 3 column (d)……………................................. En ter whole dollar amount 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 result on page 2, line 49………………………………….. En ter whole dollar amount

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Arizona Form 140 Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4. Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $ 3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 3 $27,300 • 4 or more $31,000 Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 2 $20,135 3 $23,800 • 4 $25,200 5 or more $26,575 Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 Step 4 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and If you qualify to claim the credit, complete Worksheet II. Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000 22

Arizona Form 140 Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total. 4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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. 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 properly established can be carried forward for the respective five year carry forward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carry forward period. 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. 23

Arizona Form 140 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 64, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2022 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2022 Arizona Estimated Tax Payments Including Amount Applied from Your 2021 Return and Arizona Claim of Right Use this line if you did any of the following; • made 2022 estimated income tax payments to Arizona; or • applied any of your refund from your 2021 Arizona tax return to 2022 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2022 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2022, but are filing separate 2022 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. 24

Arizona Form 140 Line 55 - 2022 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2022 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2022 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2022 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57. Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes Checkbox No Checkbox If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column. Credit for Increased Excise Taxes Worksheet 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total. 4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2022 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2022. • You paid property tax on your Arizona home in 2022. You paid rent on taxable property for the entire year or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2023. You cannot claim this credit on an amended return if you file the amended return after the due date of your return. Line 58 - Other Refundable Credits Enter the total amount 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. 25

Arizona Form 140 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58. 2022 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38. 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 58. Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2023 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2023, you cannot use that amount to pay any tax that is later found to be due for 2022. You also may not claim a refund for that amount until you file your 2023 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. 26

Arizona Form 140 Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - Veterans’ Donations Fund Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty You must have made payments during 2022 if: Arizona estimated income tax Your filing status is: AND Your Arizona gross income for 2021 was greater than: AND Your Arizona gross income for 2022 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2022 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2023. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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. 27

Arizona Form 140 3. You elected to be treated as a nonresident alien on your federal income tax return. You made three estimated Routing Number MAKE SURE YOU ENTER THE CORRECT ROUTING NUMBER payment installments. Your first installment equaled 50% of the total of all of your required installments. Box 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms/other-forms. Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2022. There is no 28

Arizona Form 140 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2023. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are on the 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. • 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns to Arizona Department of Revenue PO Box 52138 Phoenix, AZ 85072-2138 29

Arizona Form 140 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 18, 2023. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2022 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. 30

Arizona Form 140 Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011 Checkbox 2022 Original return Checkbox 2022 Amended return IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 it 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet. 1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00 3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………….. 00 4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........ 00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23. 31

Arizona Form 140 2022 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order (starting with Forms 131 and 131-SBI) Only include those forms showing Arizona income tax withholding. Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I and 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) AZ Schedule DFE (if reporting subtraction on Form 140, page 6) Form 140 – pages 5 and/or 6 (if completed) Form 140 – page 3 and 4 (if completed) Form 140 – pages 1 and 2 Form 301-SBI and all credit forms reported on Form 301-SBI Form 140-SBI (if filing) Form 203 (if filing) Forms 131 and Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) 32

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Arizona Form 2022 Resident Personal Income Tax Return 140 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 select Reports, Statistics and Legal Research from the main menu 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, Statistics and Legal Research from the main menu and then click on Publications in the left hand column. 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 and pay by April 18, 2023 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2022 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: • Single $12,950 • Married filing joint $25,900 • Married filing separate $12,950 Head of Household $19,400 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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;

• pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2022: • 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 (including nonresident aliens), 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 2022, 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 and enter the date of death after the decedent's name. If your spouse died in 2022 and you did not remarry in 2022 or if your spouse died in 2023 before filing a return for 2022, you may file a joint return. If your spouse died in 2022, the joint return should show your spouse's 2022 income before death and your income for all of 2022. If your spouse died in 2023, before filing the 2022 return, the joint return should show all of your income and all of your spouse's income for 2022. 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. 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. 2

Arizona Form 140 If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place both forms on top, when mailing the returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2022 calendar year tax return is due no later than midnight, April 15, 2023. File your return as soon as you can after January 1, 2023, but no later than April 15, 2023. Because April 15, 2023 falls on a weekend, and April 17th falls on a federal holiday, you have until Tuesday, April 18, 2023 to timely file your 2022 tax return. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2022 calendar year tax return, your due date is October 15, 2023. Because October 15, 2023 falls on a weekend, you have until Monday, October 16, 2023 to timely file your 2022 tax return. 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 18, 2023. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s). 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 2022 calendar year return by April 18, 2023 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file 3

DO YOU HAVE A COMPLICATED RETURN?

Arizona Form 140 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 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 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 and 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 2023? You must make Arizona estimated income tax payments during 2023 if: Your filing status is: AND your Arizona gross income for 2022 was greater than: AND your Arizona gross income for 2023 is greater than: Single $75,000 $75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2022, you must make estimated payments during 2023 unless you are sure you will not meet the threshold for 2023. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2022 Form 140. 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. 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. 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 the last page of these instructions for the assembly order. • Make sure you include your daytime telephone number. • If filing a fiscal year return, fill in the period covered. E-file makes filing a complex return simple! E-file software offers: • easy step-by-step instructions • error detection before filing • Easy form selection • Maximum deductions For a list of approved software visit www.azdor.gov Entering Your Name, Address, and SSN Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. 4

Arizona Form 140 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 in 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 also 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 140. 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, 2022. 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 2022 and you did not remarry in 2022. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2022, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes. 5

Arizona Form 140 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2022. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2022, and you did not remarry in 2022, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person is considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2022 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2022 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2022 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2022, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. 6

Arizona Form 140 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2022. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2022. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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? 7

Arizona Form 140 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2022 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2023?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140- SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. 8

Arizona Form 140 Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2022 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2022, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2022, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2022 was more than $3,000. • You took a deduction for the amount repaid on your 2022 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a) - Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2022, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover included in your federal income is more than the amount allowed to be taken into account for Arizona purposes. 9

Arizona Form 140 Include the amount by which the loss carryover included in your federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b) - Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you claim a credit on Form 338 for an investment in a qualified small business, 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 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1074.02. H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment Credit 325) If you claim a credit for an agricultural pollution control equipment (Form 325), you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081.01. H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment Credit 315) If you claimed a credit for pollution control equipment (Form 315) before tax year 2022, you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2022 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081. I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary. J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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 10

Arizona Form 140 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item N), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 5, “O”. 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 11

Arizona Form 140 If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2022. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. • Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2022. Tax amounts paid in 2023 for tax year 2022 will be added-back on your 2023 tax return. These payments include any 4th QTR estimated taxes paid in January 2023 and any 2023 tax payments made with the Entity’s tax return on your behalf. Q. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325), you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. R. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. S. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. 12

Arizona Form 140 Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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 13

Arizona Form 140 December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund; • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. 14

Arizona Form 140 Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2022 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. 15

Arizona Form 140 If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2022, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2022, they may subtract only $8,000 on their 2022 joint tax return. You may take a subtraction for the following: • A contribution that you made during 2022 to a plan that existed before 2022. • A contribution that you made during 2022 to a plan established in another state. • A contribution that you made in 2022 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140. NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. 16

Arizona Form 140 D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $3,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $3,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2022, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140- SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2022 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2022 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2022, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529. I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2022. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2022. Do not include any amount that is subject to tax by both Arizona and another state in 2022. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election and this subtraction is directly related to small business income 17

Arizona Form 140 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2022 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers on page 1 of these instructions if you deferred exploration expenses determined under IRC § 617 in a 18

Arizona Form 140 taxable year ending before January 1, 1990 and you have not previously taken a subtraction for those expenses. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products s shown on your Form 120S Schedule K-1, line 7. R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. T. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2022, 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. 2. In 2022, 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. 19

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Arizona Form 140 NOTE: If a taxpayer’s 65th birthday was January 1, 2023 (born 1/1/1958), that person would be considered to be age 65 at the end of 2022 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2022. 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 SSN. 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 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $12,950 Married filing joint $25,900 Married filing separate $12,950 Head of Household $19,400 Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 27% (.27) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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. 20

Arizona Form 140 Line 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Use this amount to calculate your tax using Tax Tables X and Y or the Optional Tax Tables. Line 46 - Tax Amount Enter the tax from either Tax Tables X & Y or the Optional Tax Tables. If your taxable income is $50,000 or less, you may use the Optional Tax Table or Tax Tables X and Y. If your taxable income is $50,000 or more, you must use Tax Tables X and Y. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 32. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) 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 allowable Dependent Tax Credit. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000? Yes Checkbox No Checkbox If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes Checkbox No Checkbox • 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 3 on page 2, line 49. • 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 2022 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 12……………… En ter whole dollar amount 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. En ter whole dollar amount 4. Enter amount from Table I, line 3, column (d) …………………………….. En ter whole dollar amount 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 result on page 2, line 49…………………………………... En ter whole dollar amount Table I (a) (b) (c) Credit amount (d) Multiply column (b) by column (c) 1. Enter number of dependents from page 1, box 10a…. $ 100 En ter whole dollar amount 2. Enter number of dependents from page 1, box 10b…. $ 25 En ter whole dollar amount 3. Credit amount before adjustment. Add lines 1 and 2. Enter total in column (d). En ter whole dollar amount All taxpayers go to Table II. 21 Table IV 2022 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… En ter whole dollar amount 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. En ter whole dollar amount 4. Enter amount from Table I, line 3 column (d)……………................................. En ter whole dollar amount 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 result on page 2, line 49………………………………….. En ter whole dollar amount

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Arizona Form 140 Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4. Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $ 3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Return (cont. on next column) Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 3 $27,300 • 4 or more $31,000 Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 2 $20,135 3 $23,800 • 4 $25,200 5 or more $26,575 Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 Step 4 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and If you qualify to claim the credit, complete Worksheet II. Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000 22

Arizona Form 140 Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total. 4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. Military Reuse Zone Credit The military reuse zone credit expired. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 306 to figure this credit. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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. 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 properly established can be carried forward for the respective five year carry forward period. Use Form 319 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carry forward period. 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. 23

Arizona Form 140 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 64, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2022 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2022 Arizona Estimated Tax Payments Including Amount Applied from Your 2021 Return and Arizona Claim of Right Use this line if you did any of the following; • made 2022 estimated income tax payments to Arizona; or • applied any of your refund from your 2021 Arizona tax return to 2022 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2022 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2022, but are filing separate 2022 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. 24

Arizona Form 140 Line 55 - 2022 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2022 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have a SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2022 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2022 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57. Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes Checkbox No Checkbox If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column. Credit for Increased Excise Taxes Worksheet 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total. 4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2022 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2022. • You paid property tax on your Arizona home in 2022. You paid rent on taxable property for the entire year or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 18, 2023. You cannot claim this credit on an amended return if you file the amended return after the due date of your return. Line 58 - Other Refundable Credits Enter the total amount 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. 25

Arizona Form 140 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 7, line 38. 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 58. You may use the table to figure the amount to enter on line 58. 2022 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38. 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 58. Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2023 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2023, you cannot use that amount to pay any tax that is later found to be due for 2022. You also may not claim a refund for that amount until you file your 2023 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. 26

Arizona Form 140 Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - Veterans’ Donations Fund Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty You must have made payments during 2022 if: Arizona estimated income tax Your filing status is: AND Your Arizona gross income for 2021 was greater than: AND Your Arizona gross income for 2022 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2022 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2023. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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. 27

Arizona Form 140 3. You elected to be treated as a nonresident alien on your federal income tax return. You made three estimated Routing Number MAKE SURE YOU ENTER THE CORRECT ROUTING NUMBER payment installments. Your first installment equaled 50% of the total of all of your required installments. Box 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms/other-forms. Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2022. There is no 28

Arizona Form 140 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 18, 2023. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are on the 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. • 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns to Arizona Department of Revenue PO Box 52138 Phoenix, AZ 85072-2138 29

Arizona Form 140 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 18, 2023. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2022 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. 30

Arizona Form 140 Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011 Checkbox 2022 Original return Checkbox 2022 Amended return IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 it 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet. 1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00 3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………….. 00 4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”……………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........ 00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23. 31

Arizona Form 140 2022 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order (starting with Forms 131 and 131-SBI) Only include those forms showing Arizona income tax withholding. Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I and 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) AZ Schedule DFE (if reporting subtraction on Form 140, page 6) Form 140 – pages 5 and/or 6 (if completed) Form 140 – page 3 and 4 (if completed) Form 140 – pages 1 and 2 Form 301-SBI and all credit forms reported on Form 301-SBI Form 140-SBI (if filing) Form 203 (if filing) Forms 131 and Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) 32

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE CLAIM. ADOR 10567 (22) You must file this form or Arizona Form 204 by April 18, 2023. QUALIFICATIONS FOR CREDIT (Check the boxes that apply): 4 On December 31, 2022, were you renting or did you own? If you own a mobile home but rent the space, check “Rent”.................................................... 4 Rent Own   5 Were you an Arizona resident for all of 2022? If “No”, STOP. You do not qualify........................................................................ 5 Yes No   6 Did you pay property taxes on your home, pay rent, or pay a combination of both in 2022? See instructions for qualifications. If “No”, STOP. You do not qualify........................................................................ 6   7 Is this the only Property Tax Refund being claimed in your household? If “No”, STOP. You do not qualify........................................................................ 7   8 Were you age 65 or older in 2022? Enter your birth date in box 79 above.... 8   9 Did you receive Title 16, SSI payments in 2022? If “Yes”, include proof. If you answered “No” to both 8 and 9, STOP. You do not qualify......................... 9   INCOME 10 Total Household Income: Enter the amount from page 2, Part 1, line J, column 4......................................................... 10 00 CREDIT 11 a If you lived alone, enter the amount of credit from page 2, Part 1, Schedule 1, and check the box..............................................................................................................................11a  Schedule 1

b If you lived with your spouse or one or more other persons, enter the amount of credit from page 2, Part 1, Schedule 2, and check the box.........................................................11b  Schedule 2 11 00 12 If you owned your property, enter property taxes actually paid during 2022. Include proof of property taxes paid during 2022................................................................................................................................... 12 00 13 If you rented, enter property taxes paid by your landlord on your portion of rents. Include Form 201........................... 13 00 14 Total property taxes paid in 2022. Add lines 12 and 13.................................................................................................. 14 00 15 Amount of Property Tax Credit: Enter the smaller of line 11 or line 14....................................................................... 15 00 16 If you have been claimed as a dependent on anyone else’s tax return, complete the following: Name Of Taxpayer Who Claimed You Social Security Number Address:

If you are not claimed as a dependent on anyone else’s tax return, turn the form over and complete Part 2. If someone else claims you as a dependent, skip lines 17 and 18, and complete line 19. 17 Credit for increased excise taxes from Form 140PTC, page 2, Part 2, line 6............................................................... 17 00 18 Enter the number from page 2, Part 2, line 2, here....................................................................................... 18 19 Total Credit: Add lines 15 and 17, and enter the total. See the instructions if you have to file

Arizona Form 140 or Form 140A..................................................................................................................................... 19 00 If this is your first claim for 2022, STOP HERE AND GO TO THE SIGNATURE BOX ON PAGE 2. If this is an amended claim, complete lines 20 through 22, and check box 95 at the top of the form. AMENDED 20 Enter the amount from line 5 of the worksheet on page 6 of the instructions.................................................................. 20 00 21 Additional refund: If line 19 is larger than line 20, subtract line 20 from line 19.............................................................. 21 00 22 Amount to pay: If line 19 is less than line 20, subtract line 19 from line 20. Make check payable to Arizona Department of Revenue; write your SSN on payment, and include your payment with Form 140PTC............. 22 00 Continued on page 2  3 95 Check box 95 if amending claim for tax year 2022 1 1 2 82F Check box 82F if filing under extension 79 Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if a joint claim) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Your Date of Birth (required) M M D D Y Y Y Y Enter your SSN(s). 94 Arizona Form 140PTC Property Tax Refund (Credit) Claim FOR CALENDAR YEAR 2022 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 19A if your deposit will be ultimately placed in a foreign account; see instructions. 19A

ROUTING NUMBER ACCOUNT NUMBER

ADOR 10567 (22)

AZ Form 140PTC (2022) Page 2 of 2 Part 2 Credit for Increased Excise Taxes Do not complete Part 2 if you completed line 16 on page 1 of Form 140PTC. Do not complete Part 2 if you were sentenced for at least 60 days of 2022 to a county, state, or federal prison. Note: If you are filing a joint Property Tax Credit claim with your spouse, and you are also claiming the Excise Tax Credit on Form 140PTC, you cannot claim the Excise Tax Credit for your spouse if your spouse was sentenced for at least 60 days during 2022 to a county, state or federal prison. 1 List dependents. See the instructions. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 1a 1b 1c 2 Enter total number of dependents listed on lines 1a through 1c. Also, enter this amount on Form 140PTC, page 1, line 18...... 2 3 If you are married filing a joint claim, enter the number “2” here. Otherwise, enter the number “1”............................................... 3 4 Add the amount on line 2 and line 3, and enter the total................................................................................................................... 4 5 Multiply the amount on line 4 by $25, and enter the result................................................................................................................ 5 00 6 Enter the smaller of line 5 or $100. Also, enter this amount on Form 140PTC, page 1, line 17..................................................... 6 00 Your Name (as shown on page 1) Your Social Security Number Mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138   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 SIGNATURE

DATE

OCCUPATION

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 2022 Schedule 1 If you live alone, use this Schedule. 2022 Schedule 2 If you live with your spouse or another person, use this Schedule. Household Income Tax Credit Household Income Tax Credit Household Income Tax Credit Household Income Tax Credit $ 0 - 1,750 $502 $ 2,751 - 2,850 $256 $ 0 - 2,500 $502 $ 4,001 - 4,150 $256 1,751 - 1,850 479 2,851 - 2,950 234 2,501 - 2,650 479 4,151 - 4,300 234 1,851 - 1,950 457 2,951 - 3,050 212 2,651 - 2,800 457 4,301 - 4,450 212 1,951 - 2,050 435 3,051 - 3,150 189 2,801 - 2,950 435 4,451 - 4,600 189 2,051 - 2,150 412 3,151 - 3,250 167 2,951 - 3,100 412 4,601 - 4,750 167 2,151 - 2,250 390 3,251 - 3,350 145 3,101 - 3,250 390 4,751 - 4,900 145 2,251 - 2,350 368 3,351 - 3,450 123 3,251 - 3,400 368 4,901 - 5,050 123 2,351 - 2,450 345 3,451 - 3,550 100 3,401 - 3,550 345 5,051 - 5,200 100 2,451 - 2,550 323 3,551 - 3,650 78 3,551 - 3,700 323 5,201 - 5,350 78 2,551 - 2,650 301 3,651 - 3,750 56 3,701 - 3,850 301 5,351 - 5,500 56 2,651 - 2,750 279 3,751 and up 0 3,851 - 4,000 279 5,501 and up 0 Enter the amount of credit on the front of this form, line 11. Use the amount on line J, column 4, to compute your credit from the proper schedule below. Part 1 Schedule of Household Income (1) YOU (2) YOUR SPOUSE (3) OTHER PERSONS (4) TOTAL (1+2+3) A Salaries, wages, tips, etc., received in 2022............................................ A B Dividend and interest income received in 2022........................................ B C Business and farm income....................................................................... C D Gain or loss from sale or exchange of property........................................ D E Pension and annuity income. Include Arizona state and local retirement benefits, civil service, and military retirement. Do not include social security or railroad retirement benefits......................... E F Rent and royalty income........................................................................... F G S corporation, partnership, estate, and trust income................................ G H Alimony..................................................................................................... H I Other Income: Specify source on separate sheet................................... I J Total household income: Add lines A through I in column (4). Enter here and on the front of this form, line 10............................ J

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 EXEMPTIONS FILING STATUS ADOR 10413 (22) AZ Form 140 (2022) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2022 OR FISCAL YEAR BEGINNING M M D D 2 0 2 2 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents 00 00 (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2022 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces.................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00

ADOR 10413 (22) AZ Form 140 (2022) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE DATE OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46 Compute the tax using amount on line 45 and Tax Tables X and Y or Optional Tax Tables........................................... 46 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 32............................................................................. 47 00 48 Subtotal of tax: Add lines 46 and 47. Enter the total............................................................................................................ 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 64...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2022 AZ income tax withheld.......................................................................................................................................... 53 00 54 2022 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2022 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount..........................................581308-I 582349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2023 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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. Print Form

ADOR 10413 (22) AZ Form 140 (2022) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 - 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 on their Arizona tax return may increase the standard deduction amount by 27% (.27) 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2022 through December 31, 2022 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2022 Gifts by cash or check...................................................................................... 1C 00 2C 2022 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2022 for which you are claiming a credit under Arizona law for the current (2022) or prior (2021) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 27% (.27) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction.

Your Name (as shown on page 1) Your Social Security Number 2022 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2022 (e)  IF AGE 65 OR OVER (f)  IF DIED IN 2022 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NO. (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2022 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (22) AZ Form 140 (2022) Page 4 of 6

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 5 of 6 2022 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6.

Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………...................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…........................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return........................... C 00 D Items Previously Deducted for Arizona Purposes...................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2022............................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years..................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................ F(b) 00 G(a) Addition for Expenses Due to Claiming Credit 312. See instructions.............................................................. G(a) 00 G(b) Addition to S Corporation Income for Expenses Due to Claiming Pass-Through Credit on Form 312. See instructions................................................................................................................................................ G(b) 00 H(a) Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Form 338) that was sold or otherwise disposed of during the tax year. See instructions.... H(a) 00 H(b) Adjusted Basis in Property for Which You Have Claimed a Credit for Agricultural Pollution Control Equipment (Form 325) that was sold or otherwise disposed of during the tax year. See instructions..... H(b) 00 H(c) Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equipment (Form 315) Before Taxable Year 2022 that was sold or otherwise disposed of during the tax year. See instructions. H(c) 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………...................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their federal adjusted gross income........................................... J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………..................................... L 00 M Americans with Disabilities Act - Access Expenditures............................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990............................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions..................................................................................................................................................................... O 00 P Entity-level Income Tax Payment. See instructions................................................................................. P 00 Q Other Adjustments Related to Tax Credits. See instructions..………………………................................. Q 00 R Other Adjustments. See instructions........................................................................................................ R 00 S Total Other Additions: Add all amounts and enter the total here and on page 1, line 18...................... S 00

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (22) AZ Form 140 (2022) Page 6 of 6 2022 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns…………………………………………………………………………….......... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……....................................................... C 00 D Adoption Expense……………………………………………………………………………………………………..... D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace………………………….................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……...................................................... F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)…………………...... G 00 H Qualified State Tuition Distributions………………………………………………………………………................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year......................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………...................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year……………………....... K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.................................................................................................... L 00 M Long-Term Care Insurance Premiums…………………………………………...................................................... M 00 N Americans with Disabilities Act – Access Expenditures……………………………………………………….......... N 00 O Exploration Expenses Deferred before January 1, 1990.................................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1, line 7.................................................................................................................................................................... Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions................................................................................................................................................................................. R 00 S Other Adjustments - see instructions................................................................................................................... S 00 T Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... T 00

Arizona Form 2023 Resident Personal Income Tax Return 140

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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. 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 and pay by April 15, 2024 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2023 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. • You received the 2023 Arizona Families Tax Rebate and are subtracting the amount of your rebate received from Arizona gross income (see page 6, item “U”). Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are:

and your gross income is more than: • Single $ 13,850 • Married filing joint $ 27,700 • Married filing separate $ 13,850 • Head of Household $ 20,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2023: • 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 (including nonresident aliens), 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 2023, 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 and enter the date of death after the decedent's name. If your spouse died in 2023 and you did not remarry in 2023 or if your spouse died in 2024 before filing a return for 2023, you may file a joint return. If your spouse died in 2023, the joint return should show your spouse's 2023 income before death and your income for all of 2023. If your spouse died in 2024, before filing the 2023 return, the joint return should show all of your income and all of your spouse's income for 2023. 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.

Arizona Form 140 3 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 form behind the 140 return, when mailing Form 140. If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140-SBI when mailing both returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2023 calendar year tax return is due no later than midnight, April 15, 2024. File your return as soon as you can after January 1, 2024 but no later than April 15, 2024. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2023 calendar year tax return, your due date is October 15, 2024 to timely file your 2023 tax return. 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, 2024. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s).

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 2023 calendar year return by April 15, 2024 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file

Arizona Form 140 4 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 and 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 2024? You must make Arizona estimated income tax payments during 2024 if: Your filing status is: AND your Arizona gross income for 2023 was greater than: AND your Arizona gross income for 2024 is greater than: Single $ 75,000 $ 75,000 Married filing joint $ 150,000 $ 150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2023, you must make estimated payments during 2024 unless you are sure you will not meet the threshold for 2024. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2023 Form 140. 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. 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 the last page of these instructions for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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.

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Arizona Form 140 5 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 in 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 also 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 140. 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, 2023. 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 2023 and you did not remarry in 2023. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2023, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes.

Arizona Form 140 6 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2023. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2023, and you did not remarry in 2023, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2024 (born 1/1/1959), that person is considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2023 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2023 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2023 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2023, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc.

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2023. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2023. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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?

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2023 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2024?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140- SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10.

NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140-SBI form instructions for completing a “zero” tax return. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on

Arizona Form 140 9 Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2023 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2023, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2023, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2023 was more than $3,000. • You took a deduction for the amount repaid on your 2023 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2023, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year.

Arizona Form 140 10 • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2023 Arizona taxable income. • The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b). Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338).

H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is pollution control equipment for which a credit (Form 315) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1081 (Credit 315). I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary.

Arizona Form 140 11 J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item M), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, “R”.

Arizona Form 140 12 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2023. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. • Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2023. Tax amounts paid in 2024 for tax year 2023 will be added-back on your 2024 tax return. These payments include any 4th QTR estimated taxes paid in January 2024 and any 2024 tax payments made with the Entity’s tax return on your behalf. Q. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. R. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2023, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. S. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. T. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return.

Arizona Form 140 13 If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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

Arizona Form 140 14 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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 in taxable years beginning from and after December 31, 2012 through December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund;

Arizona Form 140 15 • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2023 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual

Arizona Form 140 16 net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2023, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2023, they may subtract only $8,000 on their 2023 joint tax return. You may take a subtraction for the following: • A contribution that you made during 2023 to a plan that existed before 2023. • A contribution that you made during 2023 to a plan established in another state. • A contribution that you made in 2023 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140.

NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income

Arizona Form 140 17 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $ 40,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $ 40,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2023 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2023 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2023, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529.

Arizona Form 140 18 I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2023. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2023. Do not include any amount that is subject to tax by both Arizona and another state in 2023. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2023 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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.

Arizona Form 140 19 • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders - Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your Form 120S Schedule K-1, line 7.

R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Virtual Currency and Non-Fungible Tokens If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Airdrop as the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. • Non-fungible tokens (NFT) as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset. • Virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency. • Foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance.

Arizona Form 140 20 T. Gas Fees or Non-Fungible Token Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Gas Fees as a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or an NFT. U. Arizona Families Tax Rebate Enter the total amount of your 2023 Arizona Families Tax Rebate received during tax year 2023 that is required to be included in your Arizona Gross Income under the internal revenue code. V. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. W. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2023, 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. 2. In 2023, 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, 2024 (born 1/1/1959), that person would be considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2023. 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 SSN. 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 exemption for a stillborn child. Enter the total number of exemptions in box 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b.

Arizona Form 140 21 Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $ 13,850 • Married filing joint $ 27,700 • Married filing separate $ 13.850 • Head of Household $ 20,800 NOTE: A surviving spouse shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse. If you and your deceased spouse would have filed a joint tax return for tax year 2023, enter $27,700 on line 43. If you and deceased spouse would have filed separate tax returns for tax year 2023, enter $13,850 on line 43. Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 31% (.31) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Line 46 - Tax Amount Multiply line 45 by 2.5% (.025) and enter the result. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 31. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) is more than $200,000; and for married taxpayers filing a joint return whose federal adjusted gross income is more than $400,000.

Arizona Form 140 22 Complete the following tables to compute your allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes No • 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 3 on page 2, line 49. • 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 2023 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 12……………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2023 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4.

Arizona Form 140 23 Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575 Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000 Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information.

Arizona Form 140 24 Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 This credit was repealed for individual taxpayers for tax years beginning from and after December 31, 2021. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 315 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carry forward period. 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit.

Arizona Form 140 25 Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 62, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2023 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2023 Arizona Estimated Tax Payments Including Amount Applied from Your 2022 Return and Arizona Claim of Right Use this line if you did any of the following; • made 2023 estimated income tax payments to Arizona; or • applied any of your refund from your 2022 Arizona tax return to 2023 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2023 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2023, but are filing separate 2023 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2023 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2023 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have an SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2023 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2023 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Arizona Form 140 26 Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column. 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2023 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2023. • You paid property tax on your Arizona home in 2023. You paid rent on taxable property for the entire year or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 15, 2024. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount of refundable credits you are claiming from any of the following: • Credit for Increased Research Activities - Individuals (Form 308-I) • Credit for Motion Picture Production Costs (Form 334) • 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 7, line 38. Credit for Motion Picture Production Costs (Form 334) You may qualify for the refundable credit for the motion picture production costs if the credit exceeds your taxable income. Pre-approval and post-approval are required through the ACA to qualify for this credit. For more information about this credit and to determine whether you may claim a refund of this credit, see Arizona Form 334. If you are claiming a refund from Form 334, enter the amount from Form 334, Part 1, line 6. 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 58. You may use the table to figure the amount to enter on line 58.

Arizona Form 140 27 2023 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

2. Enter the refundable amount from Form 334, Part 1, line 6.

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

4. Add the amounts on lines 1, 2 and 3 Enter the total here and on line 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2024 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2024, you cannot use that amount to pay any tax that is later found to be due for 2023. You also may not claim a refund for that amount until you file your 2024 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics.

Arizona Form 140 28 Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72.

Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2023 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2024. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms. Select “Forms” on the home page and click on “See All Forms” then type 822 in the Search box.

You must have made Arizona estimated income tax payments during 2023 if: Your filing status is: AND Your Arizona gross income for 2022 was greater than: AND Your Arizona gross income for 2023 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000

Arizona Form 140 29 Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2023. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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.

Arizona Form 140 30 Installment payments If you cannot pay the full amount shown on line 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2024. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are on the 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. • 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax year return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns 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, 2024. 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

Arizona Form 140 31 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 received by the department within five business days of the private meter postmark date, the department will consider the 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2023 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.

Arizona Form 140 32

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

2023 Original return 2023 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”..…………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 it 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet.

Arizona Form 140 33

2023 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order

Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I, 334, 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) Only include those forms showing Arizona income tax withholding. Form 131 (if claiming a refund on behalf of a deceased taxpayer) AZ Schedule DFE (if reporting subtraction on Form 140, page 6)

Form 140 – pages 5 and/or 6 (if completed)

Form 140 – page 3 and 4 (if completed)

Form 140 – pages 1 and 2

Form 301-SBI and all credit forms reported on Form 301-SBI Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) Form 140-SBI (if filing)

Form 203 (if filing)

 Pay your taxes by credit card! American Express • Visa • Discover Card • MasterCard Before using paper, E-File and select the Direct Deposit option Fast: Faster processing of your refund and money in your account sooner. In some cases, 6 times faster. 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. 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, 2023. If you use the amounts from your 2023 federal tax return to complete your Arizona return and the Legislature does not adopt the 2023 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 2023 conformity. This Booklet Contains: • Form 140 – Resident Personal Income Tax Return • Form 140 Schedule A – Itemized Deduction Adjustments • Form 204 – Extension Request 2 23 Arizona Form 140 Resident Personal Income Tax Booklet Who can use Arizona Form 140? You, and your spouse if married filing a joint return, may file Form 140 only if you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2023 if any of the following apply to you. • Your Arizona taxable income is $50,000 or more. • You received active duty military pay as a member of the U.S. Armed Forces. • You received pay for active service as a reservist or a National Guard member. • You are making adjustments to income. • You itemize deductions. • You claim tax credits other than the family income tax credit, the property tax credit or the credit for increased excise taxes. • You are claiming estimated payments. Where’s my Refund? Check your refund status at www.AZTaxes.gov

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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 2023, except for changes Congress made to the federal tax code during 2023 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, 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 2024. 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 enacted after January 1, 2023.

What does this mean to you? It means that if any of the federal law changes made in 2023 apply to your 2023 return, you can opt to file your 2023 return using one of the following methods:

1. You can wait and file your 2023 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 2023 return assuming that the federal law changes will be adopted. The 2023 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 those changes, you may need to amend your 2023 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 2023 return and you file and pay the required amended return by the extended due date of your 2023 return. 3. You can file your 2023 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, 2023. • 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 those changes, you do not have to do anything more. • If Arizona adopts those changes, you may need to amend your 2023 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.

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Individual Income Tax - Highlights

2023 Due Date for Calendar Year Filer Your 2023 individual income tax return is due by midnight on April 15, 2024. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2024.

2023 Arizona Standard Deduction Amounts Adjusted The 2023 Arizona standard deduction amounts are:  $ 13,850 for a single taxpayer or a married taxpayer filing a separate return;  $ 27,700 for a married couple filing a joint return; and  $ 20,800 for individuals filing a head of household return.

Change to Standard Deduction Increase for Charitable Contributions For taxpayers who do not itemized deductions on their 2023 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2023, the allowable portion of your charitable contributions used to compute your Standard Deduction Increased was increased from 27% to 31% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR).

2023 New Tax Rate of 2.5% for All Income Levels and Filing Status The Optional Tax Table and the X and Y Tax Table are now obsolete.

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 2022, the maximum current year credit is: • $655 for single and head of household taxpayers. • $1,308 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 2022, the maximum current year credit is: • $652 for single and head of household taxpayers. • $1,301 for married taxpayers filing a joint return.

New Individual and Corporate Nonrefundable Tax Credits Credit for Motion Picture Production Costs (Form 334) For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion picture production. The tax credit may be claimed on either the individual’s personal income tax return (Form 140, 140NR, or 140PY) or the Small Business Income tax return, if filing. (Form 140-SBI, 140NR-SBI, or 140PY-SBI) For more information, see Credit Form 334 and instructions.

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Arizona Form 2023 Resident Personal Income Tax Return 140

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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. 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 and pay by April 15, 2024 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2023 if any of the following apply to you: • Your Arizona taxable income is $50,000 or more, regardless of filing status. • You are making adjustments to income. • You itemize deductions. (Continued on next column.) • You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. • You are claiming estimated payments. • You received the 2023 Arizona Families Tax Rebate and are subtracting the amount of your rebate received from Arizona gross income (see page 6, item “U”). Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are:

and your gross income is more than: • Single $ 13,850 • Married filing joint $ 27,700 • Married filing separate $ 13,850 • Head of Household $ 20,800 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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.

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: • You are not subject to Arizona income tax on your military pay. • You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2023: • 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 (including nonresident aliens), 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 2023, 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 and enter the date of death after the decedent's name. If your spouse died in 2023 and you did not remarry in 2023 or if your spouse died in 2024 before filing a return for 2023, you may file a joint return. If your spouse died in 2023, the joint return should show your spouse's 2023 income before death and your income for all of 2023. If your spouse died in 2024, before filing the 2023 return, the joint return should show all of your income and all of your spouse's income for 2023. 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.

Arizona Form 140 3 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 form behind the 140 return, when mailing Form 140. If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140-SBI when mailing both returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2023 calendar year tax return is due no later than midnight, April 15, 2024. File your return as soon as you can after January 1, 2024 but no later than April 15, 2024. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2023 calendar year tax return, your due date is October 15, 2024 to timely file your 2023 tax return. 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, 2024. 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s).

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 2023 calendar year return by April 15, 2024 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file

Arizona Form 140 4 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 and 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 2024? You must make Arizona estimated income tax payments during 2024 if: Your filing status is: AND your Arizona gross income for 2023 was greater than: AND your Arizona gross income for 2024 is greater than: Single $ 75,000 $ 75,000 Married filing joint $ 150,000 $ 150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2023, you must make estimated payments during 2024 unless you are sure you will not meet the threshold for 2024. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2023 Form 140. 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. 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 the last page of these instructions for the 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 Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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.

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Arizona Form 140 5 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 in 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 also 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 140. 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, 2023. 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 2023 and you did not remarry in 2023. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: • Your spouse is a nonresident alien (citizen of and living in another country). • Your spouse is a resident of another state. • Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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 married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2023, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes.

Arizona Form 140 6 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2023. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2023, and you did not remarry in 2023, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2024 (born 1/1/1959), that person is considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2023 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2023 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2023 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2023, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: • Your parent, grandparent, or great-grandparent, etc. • If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc.

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2023. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2023. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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?

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2023 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2024?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140- SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10.

NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140-SBI form instructions for completing a “zero” tax return. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on

Arizona Form 140 9 Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. • If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2023 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2023, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During 2023, you were required to repay amounts held under a claim of right. • The amount required to be repaid during 2023 was more than $3,000. • You took a deduction for the amount repaid on your 2023 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: • During a year prior to 2023, you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year.

Arizona Form 140 10 • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2023 Arizona taxable income. • The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b). Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338).

H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is pollution control equipment for which a credit (Form 315) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1081 (Credit 315). I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: • You received a nonqualified withdrawal from a 529 college savings plan. • You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: • A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. • A withdrawal made as the result of the death or disability of the designated beneficiary of an account. • A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. • A rollover or change of designated beneficiary.

Arizona Form 140 11 J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item M), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, “R”.

Arizona Form 140 12 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2023. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1, Part 5, lines 10 and 11. • Arizona Form 120S, Schedule K-1, Part 5, lines 9 and 10. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2023. Tax amounts paid in 2024 for tax year 2023 will be added-back on your 2024 tax return. These payments include any 4th QTR estimated taxes paid in January 2024 and any 2024 tax payments made with the Entity’s tax return on your behalf. Q. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. R. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2023, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. S. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. T. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: • If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. • If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return.

Arizona Form 140 13 If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction From Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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

Arizona Form 140 14 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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 in taxable years beginning from and after December 31, 2012 through December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: • the United States Government Service Retirement and Disability Fund;

Arizona Form 140 15 • the United States Foreign Service Retirement and Disability System; • any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). • the Arizona State Retirement System; • the Arizona State Retirement Plan; • the Corrections Officer Retirement Plan; • the Public Safety Personnel Retirement System; • the Elected Officials' Retirement Plan; • a retirement plan established for employees of a county, city, or town in Arizona; and • an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: • Social security benefits received under Title II of the Social Security Act. • Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2023 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual

Arizona Form 140 16 net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2023, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2023, they may subtract only $8,000 on their 2023 joint tax return. You may take a subtraction for the following: • A contribution that you made during 2023 to a plan that existed before 2023. • A contribution that you made during 2023 to a plan established in another state. • A contribution that you made in 2023 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140.

NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: • one-half of the community income from all sources, and • all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (23) AZ Form 140 (2023) Page 1 of 6

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

5  Head of household. Enter name of qualifying child or dependent on next line.

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

7  Single

 Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140.  DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2023 OR FISCAL YEAR BEGINNING M M D D 2 0 2 3 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over.

11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e) Dependent Age included in: 1 2

(Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    (Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box  and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e) IF AGE 65 OR OVER (f)  IF DIED IN 2023 11b   11c   12 Federal adjusted gross income (from your federal return).................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions.......................................................................................................... 16 00 17 Total federal depreciation............................................................................................................................................. 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total........................................................................................................ 19 00 20 Total net capital gain or (loss). See instructions...................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions..................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions....................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 23 00 24 Multiply line 23 by 25% (.25) and enter the result........................................................................................................ 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation............................................................................................................................... 26 00 27 Partnership Income adjustment. See instructions.......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer).................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians.............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces..................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00

ADOR 10413 (23)

AZ Form 140 (2023) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE

DATE

OCCUPATION

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   PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference......................................................................................................... 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500....................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions......................... 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C  Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46 Tax: Multiply line 45 by 2.5% (.025). Enter the result............................................................................................................. 46 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 31............................................................................. 47 00 48 Subtotal of tax: Add lines 46 and 47. Enter the total............................................................................................................ 48 00 49 Dependent Tax Credit. See instructions......................................................................................................................... 49 00 50 Family income tax credit (from the worksheet - see instructions)........................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 62...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0”........ 52 00 53 2023 AZ income tax withheld.......................................................................................................................................... 53 00 54 2023 AZ estimated tax payments..54a 00 Claim of Right.54b 00 Add 54a and 54b. 54c 00 55 2023 AZ extension payment (Form 204)......................................................................................................................... 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions)..................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC............................................................................................................. 57 00 58 Other refundable credits: Check the box(es) and enter the total amount......................581308-I 582334 583349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment............................ 61 00 62 Amount of line 61 to be applied to 2024 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference......................................................................... 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools............64 00 Arizona Wildlife............... 65 00 Child Abuse Prevention............ 66 00 Domestic Violence Services.67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics.................70 00 Veterans’ Donations Fund.71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund...................73 00 Spay/Neuter of Animals... 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751Democratic 752Libertarian 753Republican 76 Estimated payment penalty............................................................................................................................................. 76 00 77 771Annualized/Other 772Farmer or Fisherman 773Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80........................................................... 79 00 98 C  Checking or S  Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return................................................................................................................................................. 80 00 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 140. 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 10413 (23) AZ Form 140 (2023) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2023 Form 140 - 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 on their Arizona tax return may increase the standard deduction amount by 31% (.31) 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2023 through December 31, 2023 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2023 Gifts by cash or check...................................................................................... 1C 00 2C 2023 Other than by cash or check.......................................................................... 2C 00 3C Carryover from prior year........................................................................................ 3C 00 4C Add lines 1C through 3C and enter the total........................................................... 4C 00 5C Total charitable contributions made in 2023 for which you are claiming a credit under Arizona law for the current (2023) or prior (2022) tax year............................ 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”............................................................................................................................ 6C 00 7C Multiply line 6C by 31% (.31) and enter the result................................................... 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction.

Your Name (as shown on page 1) Your Social Security Number 2023 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f    10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e)  IF AGE 65 OR OVER (f)  IF DIED IN 2023 11d   11e   11f   11g   11h   11i   Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2023 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (23) AZ Form 140 (2023) Page 4 of 6

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (23) AZ Form 140 (2023) Page 5 of 6 2023 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6. Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns………………………………………....................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment.........................…............................................. B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return............................. C 00 D Items Previously Deducted for Arizona Purposes........................................................................................ D 00 E Claim of Right Adjustment for Amounts Repaid in 2023.............................................................................. E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years....................................................... F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right........................................................................... F(b) 00 G(a) Amount of Agricultural Water Conservation Expenses deducted under IRC for which a credit is claimed on Form 312................................................................................................................................................. G(a) 00 G(b) Addition to S Corporation income due to claiming Pass Through Credit for Agricultural Water Conservation System (Credit 312). See instructions.......................................................................................................... G(b) 00 H(a) Adjusted basis computed under IRC for property for which a credit was claimed on Form 338 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions................................................................................................................................................... H(a) 00 H(b) Adjusted basis computed under IRC for Agricultural Pollution Control Equipment for which a credit was taken (Form 325) before taxable year 2023 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions............................................................... H(b) 00 H(c) Adjusted basis computed under IRC for Pollution Control Equipment for which a credit was taken (Form 315) before taxable year 2023 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions..................................................................... H(c) 00 I Nonqualified Withdrawals from 529 College Savings Plans…………………………………......................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in the federal adjusted gross income............................................. J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident...... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency………………………………………………………………………………......................................... L 00 M Americans with Disabilities Act - Access Expenditures................................................................................ M 00 N Amortization or Depreciation for Child Care Facility before 1990................................................................ N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions......................................................................................................................................................................... O 00 P Entity-level Income Tax Payment. See instructions..................................................................................... P 00 Q Motion Picture Productions Costs. See instructions.................................................................................... Q 00 R Other Adjustments Related to Tax Credits. See instructions..………………………..................................... R 00 S Other Adjustments. See instructions........................................................................................................... S 00 T Total Other Additions: Add all amounts and enter the total here and on page 1, line 18......................... T 00

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (23) AZ Form 140 (2023) Page 6 of 6 2023 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns……………………………………………………………………………....... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustent....................................................................................... B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds……................................................... C 00 D Adoption Expense……………………………………………………………………………………………………. D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace…………………………................................ E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years…….................................................. F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits)………………….. G 00 H Qualified State Tuition Distributions…………………………………………………........................................... H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year.................... I 00 J Agricultural Crops Given to Arizona Charitable Organizations………………................................................. J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year…………………….. K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business......................................................................................... L 00 M Long-Term Care Insurance Premiums………………………………………….................................................... M 00 N Americans with Disabilities Act - Access Expenditures................................................................................... N 00 O Exploration Expenses Deferred before January 1, 1990................................................................................ O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your Form 120S Schedule K-1, line 7................................................................................................................................ Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions............................................................................................................................................................................... R 00 S Value of Virtual Currency and Non-Fungible Tokens Recieved at the Time of the Airdrop. See instructions.... S 00 T Gas Fees Not Included in Virtual Currency or Non-Fungible Token Basis. See instructions.......................... T 00 U Arizona Families Tax Rebate. See instructions............................................................................................. U 00 V Other Adjustments .See instructions................................................................................................................ V 00 W Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36.......................... W 00

ADOR 10571 (23)

PAGE 1 of 2 Include with your return. Your Name as shown on Form 140 Your Social Security Number Spouse’s Name as shown on Form 140 (if filing joint) Spouse’s Social Security Number Arizona Schedule A Itemized Deduction Adjustments For Full-Year Residents Filing Form 140 2023 To itemize on your Arizona return, you must first complete a federal Schedule A even if you did not itemize on your federal return. Use Form 140 Schedule A to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. See instructions for details. 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2................................................................................... 4 00 Adjustment to Interest Deduction 5 If 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 2023 that is equal to the amount of your 2023 federal credit.................................................................................................................................................. 5 00 Adjustments to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law............................ 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 this line................................................................ 7 00 Other Adjustments 8 Amount allowed as a federal itemized deduction that relates to income not subject to Arizona tax.............. 8 00 Adjusted Itemized Deductions 9 Add the amounts on lines 3 and 5........................................................................... 9 00 10 Add the amounts on lines 4, 6, 7, and 8.................................................................. 10 00 11 Total federal itemized deductions allowed to be taken on federal return................ 11 00 12 Enter the amount from line 9 above........................................................................ 12 00 13 Add lines 11 and 12................................................................................................. 13 00 14 Enter the amount from line 10 above...................................................................... 14 00

15 Arizona itemized deductions: Subtract line 14 from line 13. Enter the difference here. Also, enter the amount on Form 140, page 2, line 43. If less than zero, enter “0”................................................................. 15 00

You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions. IMPORTANT !

ADOR 10571 (23)

AZ Schedule A (2023)

PAGE 2 of 2 Your Name (as shown on page 1) Your Social Security Number 2023 Form 140 Schedule A Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than as charitable contributions. If you claimed income taxes on your federal 1040 Schedule A, complete the following worksheet to determine the amount of your adjustment to enter on page 1, line 7. 1A Total state income 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 state income 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

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2023 or fiscal year beginning M M D D 2 0 2 3 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (23) 1 Tax liability for 2023. You may estimate this amount....................................................................................... 1 00 2 Arizona income tax withheld during 2023....................................................................... 2 00 3 Arizona estimated tax payments for 2023...................................................................... 3 00 4 Credits you will claim on your 2023 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, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. If you are a calendar year filer, your request for a 2023 filing extension must be postmarked on or before April 15, 2024. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six‑month individual federal filing extension. 1 1 3 2 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2023 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date Individual Calendar Year Filers: This is a request for an automatic 6-month filing extension................................... October 15, 2024 Individual Fiscal Year Filers: Enter taxable year end date and 6-month extended due date............................... A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. M M D D Y Y Y Y M M D D Y Y Y Y 94 Your Daytime Phone (with area code): Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. 95. Filing Status. Must be the same as Form 140, 140A, 140EZ, 140 PTC, 140ET, 140NR, 140PY 95a Married filing joint return 95c Head of Household 95b Married filing separate return 95d Single City, Town or Post Office State ZIP Code

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2023 Form 140 Schedule A Itemized Deduction Adjustments For Full-Year Residents Only Before you complete Arizona Form 140 Schedule A, you must complete a federal Form 1040 Schedule A even if you do not itemize deductions on your 2023 federal return. You may itemize your deductions on your Arizona return even if you do not itemize on your federal return. For the most part, you can deduct those items that are allowable itemized deductions under the Internal Revenue Code (IRC). Use Form 140 Schedule A, Itemized Deduction Adjustments, to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. You must include the federal Form 1040 Schedule A with this form. General Instructions Arizona is a community property state. If you are married filing a separate return and claiming itemized deductions, see the department’s 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 Form 140 Schedule A only if any of the following items apply to you: 1. You are deducting medical and dental expenses. 2. You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates. 3. Your deductions claimed on the federal Schedule A include expenses related to income not subject to Arizona tax. 4. You are claiming an Arizona credit for any amount allowed as a charitable contribution or a state income tax deduction. If any of those items (1 through 4) apply to you, complete federal Form 1040 Schedule A, and then complete Form 140 Schedule A as instructed. Do not complete Form 140 Schedule A if those items do not apply to you. If you do not have to complete Form 140 Schedule A, enter the amount from federal Form 1040 Schedule A on Arizona Form 140, page 2, line 43. 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. In most cases, the deduction allowed on the Arizona return will be larger than the deduction allowed on the federal return. On your Arizona return, you do not have to reduce your medical expenses by a percentage of your federal adjusted gross income. In most cases, you may deduct more medical expenses on your Arizona return than you can deduct on your federal return. Complete lines 1 through 4 to deduct those expenses that were not allowed on federal return due to limitations. 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 amounts 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. For details about what types of expenses you may deduct, see federal Form 1040 Schedule A. 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 claimed this credit on your federal return (using federal Form 8396), you may deduct the amount of mortgage interest you paid in 2023 that is equal to the amount of that credit. Enter the amount of that interest on line 5. Line 6 - Adjustments to Charitable Contributions Skip line 6a if you are not claiming an Arizona tax credit for any amount allowed as a charitable contribution. 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.

Form 140 Schedule A Itemized Deduction Adjustments

2 For Example: If you claimed a credit on AZ Form: For:

You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A. 321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public Schools 323 Contributions to Private School Tuition Organization 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organizations - Individual 340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2022 return for a contribution that you made during 2023 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2023 return, even though you claimed the credit on your 2022 return. If you are claiming a credit on your 2023 return for a contribution made during 2024 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2024 return, even though you are claiming the credit on your 2023 return. Line 7 – Adjustment to State Income Taxes Arizona Revised Statutes § 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 as 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 to determine the amount of your adjustment to enter on line 7. Line 8 - Other Adjustments You may not deduct any expense that relates to income not subject to Arizona tax. You must complete line 7 if your federal Schedule A includes such expenses. Such expenses include: 1. Interest or other related expenses incurred to purchase

or carry U.S. obligations, when the income is not

subject to Arizona tax. 2. State taxes paid to other states for prior years if you

were not an Arizona resident for that prior year. 3. Employee business expenses that relate to income not

subject to Arizona tax. This list is not complete. There may be other items included in your federal Schedule A that you cannot deduct on the Arizona return. Enter the amount of expenses deductible on federal Schedule A that are allocable to income that is not subject to Arizona income tax. Lines 9 through 14 - Adjusted Itemized Deductions Complete lines 9 through 14 as instructed on the form. Line 15 – Arizona Itemized Deductions Subtract line 14 from line 13 and enter the difference. If less than zero, enter “0”. Also, enter the amount on Form 140, page 2, line 43. NOTE: The amount entered on line 15 cannot be a negative number. Entering a negative number on Form 140, line 43 may delay the processing of your return.

Arizona Form 2023 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu.

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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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. Completing Form 204 • Enter your name and SSN on the first line 1. • If filing a joint return with your spouse, enter your spouse’s name and SSN on the second line 1. • Enter your current address on lines 2 and 3. • Box 95: Select the filing status that you will use on Form 140, 140A, 140EZ, 140PTC, 140ET, 140NR or 140PY. • Box 94: enter your daytime phone (with area code). • Check which form this filing extension request if filed for. • Complete the rest of form following the directions on the form. 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). 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 weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. Calendar year filers have until April 15, 2024 to file the request for an extension. This will allow you to file your return by October 15, 2024. Complete Form 204 to request an automatic 6-month extension. Write 2023 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, 2024 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

Arizona Form 204 2

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, 2024 even though your federal return is due on June 15, 2024. If you want to file your 2023 Arizona return after April 15, 2024 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, 2024. 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, 2024 even though your federal return will not be due until December 15, 2024. If you file your 2023 Arizona calendar year return after October 15, 2024 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 2023 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 2023. 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.

Arizona Form 140 17 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $ 40,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: • unreimbursed medical and hospital costs; • adoption counseling; • legal and agency fees; and • other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $ 40,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: • During a year prior to 2023 you were required to repay amounts held under a claim of right. • You computed your tax for that prior year under Arizona's claim of right provisions. • A net operating loss or capital loss was established due to the repayment made in the prior year. • You are entitled to take that net operating loss or capital loss carryover into account when computing your 2023 Arizona taxable income. • The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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 received any of the above federal tax credits for 2023, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529.

Arizona Form 140 18 I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: • The income from the sale is subject to Arizona income tax in 2023. • You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2023. Do not include any amount that is subject to tax by both Arizona and another state in 2023. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona Charitable Organizations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2023 to one or more charitable organizations. To take this subtraction, all of the following must apply: • You must be engaged in the business of farming or processing agricultural crops. • The crop must be grown in Arizona. • You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: • 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.

Arizona Form 140 19 • 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders - Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your Form 120S Schedule K-1, line 7.

R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Virtual Currency and Non-Fungible Tokens If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Airdrop as the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. • Non-fungible tokens (NFT) as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset. • Virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency. • Foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance.

Arizona Form 140 20 T. Gas Fees or Non-Fungible Token Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Gas Fees as a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or an NFT. • V. Arizona Families Tax Rebate • Enter the total amount of your 2023 Arizona Families Tax Rebate received during tax year 2023 that is required to be included in your Arizona Gross Income under the internal revenue code. U. Arizona Families Tax Rebate Enter the total amount of your 2023 Arizona Families Tax Rebate received during tax year 2023 that is required to be included in your Arizona Gross Income under the internal revenue code. V. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. W. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. 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) if either of the following applies: 1. In 2023, 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. 2. In 2023, 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, 2024 (born 1/1/1959), that person would be considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2023. 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 SSN. 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 exemption for a stillborn child. Enter the total number of exemptions in box 40E on line 40. You may lose the exemption if you do not furnish this information.

Arizona Form 140 21 Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: • Single $ 13,850 • Married filing joint $ 27,700 • Married filing separate $ 13.850 • Head of Household $ 20,800 NOTE: A surviving spouse shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse. If you and your deceased spouse would have filed a joint tax return for tax year 2023, enter $27,700 on line 43. If you and deceased spouse would have filed separate tax returns for tax year 2023, enter $13,850 on line 43. Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 31% (.31) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Line 46 - Tax Amount Multiply line 45 by 2.5% (.025) and enter the result. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 31. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) is more than $200,000;

Arizona Form 140 22 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 allowable Dependent Tax Credit. Table I (table continued on next page) (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes No • 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 3 on page 2, line 49. • 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 2023 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 12……………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2023 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. • Complete Steps 1, 2, and 3 to see if you qualify for this credit. • If you qualify to claim this credit, complete Worksheet II in Step 4. Step 1 Worksheet I (Continued on next page) 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $

Arizona Form 140 23 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13………….. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. • Use Table I if married filing a joint return. • Use Table II if head of household. • Use Table III if single or married filing separate return. Step 3 • Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. • Find the maximum income [in column (b)] for the number of dependents you are claiming. • Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $23,600 • 3 $27,300 • 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or 1 $20,000 • 2 $20,135 • 3 $23,800 • 4 $25,200 • 5 or more $26,575 Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income • 0 or more $10,000 Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. 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 140, line 51. 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 your credit.

Arizona Form 140 24 Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 This credit was repealed for individual taxpayers for tax years beginning from and after December 31, 2021. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 315 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 and Industrial Applications The credit for installed solar energy devices for commercial, industrial, or other nonresidential applications located in Arizona has expired. All credits that were properly established can be carried forward for the respective five year carry forward period. 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit.

Arizona Form 140 25 TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 62, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2023 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2023 Arizona Estimated Tax Payments Including Amount Applied from Your 2022 Return and Arizona Claim of Right Use this line if you did any of the following; • made 2023 estimated income tax payments to Arizona; or • applied any of your refund from your 2022 Arizona tax return to 2023 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2023 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2023, but are filing separate 2023 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b. 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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2023 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2023 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: • You must have an SSN that is valid for employment. • You meet the income threshold for your filing status. • If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. • If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. • You are not claimed as a dependent by any other taxpayer. • You were not sentenced for at least 60 days of 2023 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2023 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column.

Arizona Form 140 26 Credit for Increased Excise Taxes Worksheet 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: • You were either 65 or older in 2023 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. • You were an Arizona resident for the full year in 2023. • You paid property tax on your Arizona home in 2023. You paid rent on taxable property for the entire year or you did a combination of both. • If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 15, 2024. You cannot claim this credit on an amended return if you file the amended return after the due date of your return.

Line 58 - Other Refundable Credits Enter the total amount of refundable credits you are claiming from any of the following: • Credit for Increased Research Activities - Individuals (Form 308-I) • Credit for Motion Picture Production Costs (Form 334) • 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 7, line 38. Credit for Motion Picture Production Costs (Form 334) You may qualify for the refundable credit for the motion picture production costs if the credit exceeds your taxable income. Pre-approval and post-approval are required through the ACA to qualify for this credit. For more information about this credit and to determine whether you may claim a refund of this credit, see Arizona Form 334. If you are claiming a refund from Form 334, enter the amount from Form 334, Part 1, line 6. 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 58. You may use the table to figure the amount to enter on line 58. 2023 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

2. Enter the refundable amount from Form 334, Part 1, line 6.

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

4. Add the amounts on lines 1, 2 and 3 Enter the total here and on line 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total.

Arizona Form 140 27 Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2024 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2024, you cannot use that amount to pay any tax that is later found to be due for 2023. You also may not claim a refund for that amount until you file your 2024 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: • Democratic • Libertarian • Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics. Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72.

Arizona Form 140 28 Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2023 if the following apply: • You are a calendar year filer. You file your Arizona return by March 1, 2024. You pay in full the amount stated on your return as owed. • 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms. Select “Forms” on the home page and click on “See All Forms” then type 822 in the Search box. Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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. You must have made Arizona estimated income tax payments during 2023 if: Your filing status is: AND Your Arizona gross income for 2022 was greater than: AND Your Arizona gross income for 2023 was greater than: • Single $75,000 $75,000 • Married filing joint $150,000 $150,000 • Married filing separate $75,000 $75,000 • Head of Household $75,000 $75,000

Arizona Form 140 29 • 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2023. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2024. 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 140 is not considered a valid return unless you sign it.

Arizona Form 140 30 The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing • Do not staple your return. Do not staple any documents, schedules, or payment to your return. • Make sure your NAME and SSN are on the 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. • 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. • If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax year return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns 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, 2024. 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 received by the department within five business days of the private meter postmark date, the department will consider the 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.

Arizona Form 140 31 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2023 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.

Arizona Form 140 32

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

2023 Original return 2023 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25…………………………………………………………………………………….. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”..…………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 • If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. • If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. • 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 it 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet.

Arizona Form 140 33

2023 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order

Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I, 334, 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) Only include those forms showing Arizona income tax withholding. Form 131 (if claiming a refund on behalf of a deceased taxpayer) AZ Schedule DFE (if reporting subtraction on Form 140, page 6)

Form 140 – pages 5 and/or 6 (if completed)

Form 140 – page 3 and 4 (if completed)

Form 140 – pages 1 and 2

Form 301-SBI and all credit forms reported on Form 301-SBI Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) Form 140-SBI (if filing)

Form 203 (if filing)

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 Up to $100 per household your federal adjusted gross income was $ 25,000 or less ($12,500 if single) you were not sentenced for at least 60 days of 2023 to a county, state or federal prison Before using paper, E-File and select the Direct Deposit option for a faster refund!

Be sure to use www.azdor.gov to access your preferred software vendor to ensure free filing for your federal and state returns. Do-It-Yourself with fillable forms. Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box. You may qualify to file your federal and Arizona individual income returns for FREE!! 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

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 when you file your state and federal taxes.

Tax Year 2023 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $17,640 ($24,210 if MFJ) $600 1 $46,560 ($53,120 if MFJ) $3,995 2 $52,918 ($59,478 if MFJ) $6,604 3 or more $56,838 ($63,698 if MFJ) $7,430 *your age 25 - 64 MFJ = Married Filed Jointly

Tax Year 2023 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 2023 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

QUICK AND EASY ACCESS TO TAX HELP AND FORMS ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 CONTENTS 140 CREDITS Credits from Form 301.......... 23 Family income tax credit....... 42 Increased excise tax credit.... 45 Property tax credit................. 46 Credit for taxes paid to another state or country........ 43 DEDUCTIONS Itemized deductions.............. 41 Standard deduction............... 41 EXEMPTIONS Age 65 or older...................... 12, 40 Blind...................................... 12, 40 Dependents............................ 13 Qualifying parents and grandparents......................... 12, 41 FILING INFORMATION Do you have to file................. 7 Estimated tax......................... 10 Filing extensions................... 9 Penalties and interest............ 9 When to file........................... 9 Mailing your return............... 50 FILING STATUS All filing statuses................... 10 INCOME Additions to income.............. 14 Federal adjusted gross income................................... 14 Subtractions from income..... 18 Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. Visit azdor.gov for taxpayer support services that may be accessed by phone or computer. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928...... (800) 352-4090 PREPARING YOUR RETURN • Ensure all the necessary lines, amounts, and forms are filled out properly. Check to make sure that calculations on your return are correct as a math error can cause delays in processing your return. • Double check spelling of names. Avoid using two different names. • Make sure that you legibly write your complete 9-digit Social Security Number (SSN) on your return. Without proper identification, the Arizona Department of Revenue (ADOR) is unable to process the return. • Write clearly or use fillable forms. Handwriting can easily be mistaken and mis-typed into ADOR systems. • Enter your routing number or account number correctly in all appropriate boxes. You are responsible for this information. • Send payment with the correct return. Send the Arizona Department of Revenue payments with the state return to ADOR and the IRS payment with the federal return to the IRS. The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account. • If you are filing a joint return, enter the SSNs in the same order every year. SUBMITTING YOUR RETURN • Sign and date the return. • Do not staple any items to the return. • Make sure you use correct postage on the envelope. • Ensure all pages are sent in together as ADOR will not process partial returns. • Include your check or money order with your return. Please do not send cash. • Include a voucher with the payment if not sending it with the return. ADOR spends time researching and connecting the payment to an account if no return or voucher is included delaying the return process. • All envelopes should be addressed to Arizona Department of Revenue then add the PO Box for the area you wish to reach. • By law, ADOR must offset any refunds to certain government agencies that have a claim against you. If you received a letter informing you of the offset, please contact the agency listed in the letter. • Please allow 8-10 weeks for processing. Do not resubmit a return or submit an electronic payment if you mailed a paper check. • Payments are one of the last items to be processed. The postmark date is used to determine if income payments and returns are timely. Did You Know? When you use tax software all the hard work is done 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 • Free E-File available for those who qualify Before using paper, E-File and select the Direct Deposit option for a faster refund!

 Pay your taxes by credit card! American Express  Visa  Discover Card  MasterCard 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 2023. This Booklet Contains: • Form 140NR – Nonresident Personal Income Tax Return • Schedule A(NR) – Itemized Deduction • Form 204 – Extension Request 2 23 Arizona Form 140NR Nonresident Personal Income Tax Booklet Where’s my Refund? Check your refund status at www.AZTaxes.gov 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, 2023. If you use the amounts from your 2023 federal tax return to complete your Arizona return and the Legislature does not adopt the 2023 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 2023 conformity. Before using paper, E-File and select the Direct Deposit option Fast: Faster processing of your refund and money in your account sooner. In some cases, 6 times faster. 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.

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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 2023, except for changes Congress made to the federal tax code during 2023 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, 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 2024. 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 enacted after January 1, 2023.

What does this mean to you? It means that if any of the federal law changes made in 2023 apply to your 2023 return, you can opt to file your 2023 return using one of the following methods:

1. You can wait and file your 2023 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 2023 return assuming that the federal law changes will be adopted. The 2023 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 those changes, you may need to amend your 2023 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 2023 return and you file and pay the required amended return by the extended due date of your 2023 return. 3. You can file your 2023 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, 2023. • 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 those changes, you do not have to do anything more. • If Arizona adopts those changes, you may need to amend your 2023 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.

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Individual Income Tax - Highlights

2023 Due Date for Calendar Year Filer Your 2023 individual income tax return is due by midnight on April 15, 2024. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2024.

2023 Arizona Standard Deduction Amounts Adjusted The 2023 Arizona standard deduction amounts are:  $ 13,850 for a single taxpayer or a married taxpayer filing a separate return;  $ 27,700 for a married couple filing a joint return; and  $ 20,800 for individuals filing a head of household return.

Change to Standard Deduction Increase for Charitable Contributions For taxpayers who do not itemized deductions on their 2023 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2023, the allowable portion of your charitable contributions used to compute your Standard Deduction Increased was increased from 27% to 31% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR).

2023 New Tax Rate of 2.5% for All Income Levels and Filing Status The Optional Tax Table and the X and Y Tax Table are now obsolete.

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 2022, the maximum current year credit is: • $655 for single and head of household taxpayers. • $1,308 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 2022, the maximum current year credit is: • $652 for single and head of household taxpayers. • $1,301 for married taxpayers filing a joint return.

New Individual and Corporate Nonrefundable Tax Credits Credit for Motion Picture Production Costs (Form 334) For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion picture production. The tax credit may be claimed on either the individual’s personal income tax return (Form 140, 140NR, or 140PY) or the Small Business Income tax return, if filing. (Form 140-SBI, 140NR-SBI, or 140PY-SBI) For more information, see Credit Form 334 and instructions.

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Arizona Form 2023 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. 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, 2024, 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 29, 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 the last page of these instructions 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 2023, 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. You must file if you are: and your gross income is more than: • Single $ 13,850 • Married filing joint $ 27,700 • Married filing separate $ 13,850 • Head of Household $ 20,800 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 federal adjusted gross income that represents your Arizona 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 that Arizona law does not tax. Income that 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; • pay received for active service as a member of the Reserves, National Guard, or the U.S. Armed Forces; or • benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. 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.

Arizona Form 140NR 2 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. 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 you are 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 you are 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. The child should not file an Arizona return. The parent must include that same income in their 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 Arizona 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 2023: • 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 (including nonresident aliens), 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 2023, 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 2023 and you did not remarry in 2023 or if your spouse died in 2024 before filing a return for 2023, you may file a joint return. If your spouse died in 2023, the joint return should show your spouse's 2023 income before death and your income for all of 2023. If your spouse died in 2024, before filing the 2023 return, the joint return should show all of your

Arizona Form 140NR 3 income and all of your spouse's income for 2023. 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. 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 Form 131 behind Form 140NR when mailing the return. If you are claiming a refund on Form 140NR-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140NR-SBI return when mailing the returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2023 calendar year tax return is due no later than midnight, April 15, 2024. File your return as soon as you can after January 1, 2024, but no later than April 15, 2024. 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. If you request an extension to file your 2023 calendar year tax return, your due date is October 15, 2024 to timely file your 2023 tax return. 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, 2024. 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, 2024, even though your federal return is due on June 15, 2024. If you want to file your Arizona return after April 15, 2024, you must ask for a filing extension. You must file this request by April 15, 2024. Arizona will allow up to a 6-month extension. This will allow you to file your return by October 15, 2024. 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, 2024, even though your federal return will not be due until December 15, 2024. If you file your 2023 Arizona calendar year return after October 15, 2024, 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 2023 calendar year return by April 15, 2024, 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 a 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).

Arizona Form 140NR 4 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. 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 2024? You must make Arizona estimated income tax payments during 2024 if: Your filing status is: AND your Arizona gross income for 2023 was greater than: AND your Arizona gross income for 2024 is greater than: Single $ 75,000 $ 75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2023, you must make estimated payments during 2024 unless you are sure you will not meet the threshold for 2024. 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 2023 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. 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 the last page of these instructions for the assembly order. • Make sure you include your daytime telephone number. • If filing a fiscal year return, fill in the period covered.

Arizona Form 140NR 5 Entering Your Name, Address and SSN 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. Enter your spouse’s name and SSN on the second line 1. 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 in 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, 2023. 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 2023 and you did not remarry in 2023. 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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.

Arizona Form 140NR 6 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, 2023, 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. NOTE: In some cases, you may treat community income as separate income. For more information on when you may treat community income as separate income, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2023. You are single if any of the following apply to you: • You have never been married. • You are legally separated under a decree of divorce or of separate maintenance. • You were widowed before January 1, 2023, you did not remarry in 2023, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8 and 9 Enter the number of exemptions you are claiming in boxes 8 and 9. Do not put a check mark or “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2024 (born 1/1/59), that person is considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2023 and not claimed as a dependent by another taxpayer. • If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2023 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2023 and neither of you are claimed as a dependent by another taxpayer. • If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2023, you must get a statement certified by your eye doctor or registered optometrist that either: • You cannot see better than 20/200 in your better eye with glasses or contact lenses, or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. • If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. • 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" in box 9 if both you and your spouse are totally or partially blind. • If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if your spouse (1) is totally or partially blind, (2) has no Arizona adjusted gross income for calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria, and your spouse meets the above criteria.

Arizona Form 140NR 7 Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit on line 59. Lines 10c through 10f You must complete the dependent information section (lines 10c through 10f on page 1 (and Part 1 on page 4, if more space is needed), for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: a) first and last name; b) SSN; 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 2023, 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 2023. 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 32 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 you are married and 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 2023 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 2023 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.

Arizona Form 140NR 8 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 2023 Arizona gross income can include only Arizona source losses you used on your 2023 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. 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 2023 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 the 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 the 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.

Arizona Form 140NR 9 Line 24 - Other Federal Adjustments On line 24, include any other federal adjustments included in your federal adjusted gross income that are attributable to the Arizona source income reported on your 2023 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. Examples: Arizona Gross Income from line 26 Federal Adjusted Gross Income from line 25 Arizona income ratio $ 17,516 $ 32,000 17,516/32,000 = .547375 enter on line 27:

$ 25,650 $ 92,100 25,650/92,100 = .278501 enter on line 27:

$ 10,000 $ 9,000 10,000/9,000 = 1.11111 enter on line 27:

• 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. Arizona Small Business Tax Return Individuals may elect to report their small business income on Arizona Form 140NR-SBI, Small Business Income, for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140NR-SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report small business income on Arizona Form 140NR-SBI? Taxpayers make the election by simply completing Form 140NR-SBI reporting their small business income and including the completed form with their Form 140NR tax return, when filed. NOTE: You must include Form 140NR-SBI with your Form 140NR, when filed. If you do not include Form 140NR-SBI with your Form 140NR, processing of your return may be delayed or your subtraction on line 28 may be denied. See the Mailing instructions for the correct address when mailing both Form 140NR and Form 140NR-SBI. Modified Arizona Gross Income Line 28 - Small Business Income If you elect to report your small business income on Arizona Form 140NR-SBI, check the box on line 28 and enter the amount of small business income reported on Form 140NR-SBI, line 10. If you are not making this election, enter “0” on line 28. NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140NR-SBI form instructions for completing a “zero” tax return. Line 29 – Modified Federal Adjusted Gross Income Subtract line 28 from line 26. Additions to Income NOTE: • If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140NR- SBI. If the addition is not directly related to small business income, make the addition on Form 140NR. • If you are not filing Form 140NR-SBI, make that addition on Form 140NR.

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Arizona Form 140NR 10 As a nonresident, include only those additions listed below that are related to Arizona source income reported on Form 140NR. Line 30 - Total Depreciation Included in Arizona Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 31 - Partnership Income Adjustment (Positive) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. Depending on your situation, you may either add (line 31) 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 31. NOTE: If the difference reported on line 17, column (c) of your Arizona Form 165 Schedule K-1(NR) is a negative number, enter the portion of the difference that is allocable to partnership income taxable by Arizona as a subtraction on line 41. Line 32 - Other Additions to Arizona Gross Income Use line 32 if any of the special circumstances below apply. NOTE: If you are reporting any adjustment on line 32, complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 32, do not include page 5 with your return. A. Fiduciary Adjustment - Form 141AZ Schedule K-1(NR) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 32) 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 32. 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. 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 2023 NOTE: For items C and D; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140NR-SBI return if the income were reported in 2023, the adjustment should be made in the 140NR-SBI return. All other claim of right adjustments should be made on the regular 140NR return. You must make an entry here if all of the following apply: 1. During 2023, 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 2023 was more than $3,000. 4. You took a deduction for the amount repaid on your 2023 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 2023, 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 2023 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.

Arizona Form 140NR 11 E. Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. F(a) Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. F(b). Addition to S Corporation Income Due to Claiming Pass-Through Credit for Agricultural Water Conservation system (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. Shareholders of an S corporation who claim a credit passed through from an S corporation must make an addition to their 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 (Form 312-S, line 1). Shareholders must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. G(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338). G(b). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you claimed a credit for pollution control equipment (Form 315) before tax year 2022, you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2023 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081 G(c). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during 2023 exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). H. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income 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. If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. I. Americans with Disabilities Act Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 A.R.S. Title 41, chapter 9, article 8, any amount of eligible access expenditures that is recognized under the IRC, including any amount that is amortized

Arizona Form 140NR 12 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 a 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. Net Capital (Loss) from the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 page 6, “M”. 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. L. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2023. Enter the total amount of tax paid shown on: • Arizona Form 165, Schedule K-1(NR), Part 6, lines 22 and 23. • Arizona Form 120S, Schedule K-1(NR), Part 6, lines 22 and 23.

NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2023. Tax amounts paid in 2024 for tax year 2023 will be added-back on your 2024 tax return. These payments include any 4th QTR estimated taxes paid in January 2024 and any 2024 tax payments made with the Entity’s tax return on your behalf. M. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. N. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property computed under section 43-1081.01. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property computed under section 43-1081. If you have more than one adjustment related to tax credits, add the amounts together and enter the total.

Arizona Form 140NR 13 O. Other Adjustments If you are making the small business election, do not make the addition here, make it on the 140NR-SBI tax return. 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. P. Total Other Additions to Arizona Gross Income Add all amounts from page 5 and enter the total on line 32. Line 33 - Subtotal Add lines 29, 30, 31 and 32. Enter the total on line 33. Subtractions from Income NOTE: • If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140NR-SBI. If the subtraction is not directly related to small business income, make the subtraction on Form 140NR. • If you are not filing Form 140NR-SBI, make that subtraction on Form 140NR. As a nonresident, include only those subtractions listed below that are related to Arizona source income reported on Form 140NR. 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 34 through 38 - Net Capital Gain or (Loss) NOTE: For lines 34-38; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140NR, lines 34-38. If you are not filing a small business income tax return, include all allowable net capital gains or (losses) on Form 140NR, lines 34-38. If you enter an amount on line 34, you must also complete lines 35 and 36. If you do not complete these lines, you cannot take the subtraction on line 38. NOTE: If you do not have any net capital gain or (loss) to report, enter “0” on lines 34-37. 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 34 - Total Arizona Sourced Net Capital Gain or (Loss) Enter the amount shown on line 20 of the Arizona column. Line 35 - Total Arizona Sourced Net Short-Term Capital Gain or (Loss) Enter the amount of total Arizona sourced net short-term capital gain reported on line 35. 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 35. Line 36 - Total Arizona Sourced Net Long-Term Capital Gain or (Loss) Enter the amount of total Arizona sourced net long-term capital gain or (loss) included in line 34. 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 37 – 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 38 – Arizona Sourced Net Long-Term Capital Gain Subtraction from Income for Assets Acquired After December 31, 2011 Multiply the amount on line 37 by 25% (.25) and enter the result. NOTE: If you take a subtraction on line 39 that includes any long-term capital gain from an investment in qualified small business made after December 31, 2011, you cannot include that portion of the net capital gain in your computation of the allowable subtraction on line 38 for any net long-term capital gain from assets acquired after December 31, 2011 and included in federal adjusted gross income.

Arizona Form 140NR 14 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 38. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 37. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 37. Line 39 - Net Capital Gain from Investment in a Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI tax return. 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 39, enter the amount of the allowable subtraction. Line 40 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 40. Line 41 - Partnership Income Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 parentheses. 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 31.

Arizona Form 140NR 15 Line 42 Subtract lines 38 through 41 from line 33 and enter the difference. Line 43 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. Arizona law allows for a subtraction for qualified crop gifts made during 2023 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. Line 45 - Other Subtractions from Income NOTE: • If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140NR-SBI. If the subtraction is not directly related to small business income, make the subtraction on Form 140NR. • If you are not filing Form 140NR-SBI, make that subtraction on Form 140NR. As a nonresident, include only those subtractions listed below that are related to Arizona source income reported on Form 140NR. Use line 45 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 45, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 45, do not include page 6 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 a residential 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 NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2023, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140NR-SBI return if the income were reported in 2023, the adjustment should be made in the 140NR-SBI return. All other claim of right adjustments should be made on the regular 140NR return.

Arizona Form 140NR 16 You must make an entry here if all (1-6) of the following apply: 1. During a year prior to 2023, 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 2023 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 2023, 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. For property used in an Arizona business that is sold or otherwise disposed of during the taxable year by a taxpayer who added back all depreciation for that property 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 32) or subtract (line 45) 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 “Other Additions to Income” on line 32. G. Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 2023 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

Page 1 of 6 88R REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81P PM 80R RCVD ADOR 10177 (23) AZ Form 140NR (2023) FILING STATUS EXEMPTIONS

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

4  Married filing joint return 4a  Injured Spouse Protection of Joint Overpayment

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

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

7  Single Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Arizona Income Additions Subtractions – cont. on page 2 Arizona Form 140NR Nonresident Personal Income Tax Return FOR CALENDAR YEAR 2023 82F Check box 82F if filing under extension Place any required federal and AZ schedules or other documents after Form 140NR.  DO NOT STAPLE ANY ITEMS TO THE RETURN. OR FISCAL YEAR BEGINNING M M D D 2 0 2 3 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over. 11-13 Residency Status (check one): 11 Nonresident 12 Nonresident Active Military 13 Composite Return (see instructions - page 29) If completing lines 8 and 9, also complete lines 47 and 48. For lines 10a and 10b, complete line 59. (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box  and complete page 4. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f)  if you did not claim this person on your federal return due to educational credits 10c    10d    10e    10f    14 Check box 14 if married and you are the spouse of an active duty military member who qualifies for relief under the Military Spouses Residency Relief Act...................14 2023 FEDERAL Amount from Federal Return 2023 ARIZONA Source Amount Only 15 Wages, salaries, tips, etc..................................................................................................... 15 00 00 16 Interest................................................................................................................................. 16 00 00 17 Dividends............................................................................................................................. 17 00 00 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 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 • 28 Small Business Income: 28S check the box if you are filing Form 140NR-SBI and enter the amount from Form 140NR-SBI, line 10................ 28 00 29 Modified Arizona gross income. Subtract line 28 from 26........................................................................................... 29 00 30 Total depreciation included in Arizona gross income.................................................................................................... 30 00 31 Partnership Income adjustment. See instructions........................................................................................................... 31 00 32 Other Additions to Income. Complete Other Additions to Arizona Gross Income schedule on page 5........................ 32 00 33 Subtotal: Add lines 29, 30, 31 and 32. Enter the total................................................................................................ 33 00 34 Total Arizona sourced net capital gain or (loss). See instructions........................................... 34 00 35 Total net short-term capital gain or (loss) included on line 20, ARIZONA column.............. 35 00 36 Total net long-term capital gain or (loss) included on line 20, ARIZONA column.................. 36 00 37 Net long-term capital gain from assets acquired after December 31, 2011. See instructions. 37 00 38 Multiply line 37 by 25% (.25) and enter the result........................................................................................................ 38 00 39 Net capital gain derived from investment in qualified small business........................................................................... 39 00 40 Recalculated Arizona depreciation............................................................................................................................... 40 00 41 Partnership Income adjustment. See instructions.......................................................................................................... 41 00 42 Subtract lines 38 through 41 from line 33. Enter the difference................................................................................... 42 00

ADOR 10177 (23) AZ Form 140NR (2023)

 Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Subtractions cont. from page 1 Exemptions Balance of Tax Total Payments and Refundable Credits Tax Due or Overpayment Penalty Refund or Amount Owed Voluntary Gifts 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 SIGNATURE

DATE

OCCUPATION

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.   PLEASE SIGN HERE 43 Interest on U.S. obligations such as U.S. savings bonds and treasury bills.................................................................. 43 00 44 Agricultural crops contributed to Arizona charitable organizations................................................................................. 44 00 45 Other Subtractions from Income: Complete Other Subtractions from Arizona Gross Income schedule on page 6..... 45 00 46 Subtract lines 43, 44 and 45 from line 42. Enter the difference................................................................................... 46 00 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 00 52 Arizona adjusted gross income: Subtract line 51 from line 46. If less than zero, enter “0”.................................................. 52 00 53 Deductions: Check box and enter amount. See instructions........................53I ITEMIZED 53S STANDARD 53 00 54 If you checked box 53S and claim charitable contributions, check 54C Complete page 3. See instructions................. 54 00 55 Arizona taxable income: Subtract lines 53 and 54 from line 52. If less than zero, enter “0”..................................................... 55 00 56 Tax: Multiply line 55 by 2.5% (.025). Enter the result................................................................................................... 56 00 57 Tax from recapture of credits from Arizona Form 301, Part 2, line 31............................................................................ 57 00 58 Subtotal of tax: Add lines 56 and 57. Enter the total........................................................................................................... 58 00 59 Dependent Tax Credit. See instructions........................................................................................................................... 59 00 60 Nonrefundable credits from Arizona Form 301, Part 2, line 62...................................................................................... 60 00 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 00 62 2023 AZ income tax withheld......................................................................................................................................... 62 00 63 2023 AZ estimated tax payments..63a 00 Claim of Right.63b 00 Add 63a and 63b. 63c 00 64 2023 AZ extension payment (Form 204)........................................................................................................................ 64 00 65 Other refundable credits: Check the box(es) and enter the total amount............................651308-I 652334 653349 65 00 66 Total payments and refundable credits: Add lines 62 through 65. Enter the total........................................................... 66 00 67 TAX DUE: If line 61 is larger than line 66, subtract line 66 from line 61. Enter amount of tax due. Skip lines 68, 69 and 70........... 67 00 68 OVERPAYMENT: If line 66 is larger than line 61, subtract line 61 from line 66. Enter amount of overpayment........................... 68 00 69 Amount of line 68 to be applied to 2024 estimated tax.................................................................................................. 69 00 70 Balance of overpayment: Subtract line 69 from line 68. Enter the difference........................................................................ 70 00 71 - 81 Voluntary Gifts to: Solutions Teams Assigned to Schools............71 00 Arizona Wildlife............... 72 00 Child Abuse Prevention............73 00 Domestic Violence Services.74 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 and Road Fund...................80 00 Spay/Neuter of Animals... 81 00 82 Political Party (if amount is entered on line 75 - check only one): 821Democratic 822Libertarian 823Republican 83 Estimated payment penalty............................................................................................................................................ 83 00 84 841Annualized/Other 842Farmer or Fisherman 843Form 221 included 85 Add lines 71 through 81 and 83. Enter the total............................................................................................................ 85 00 86 REFUND: Subtract line 85 from line 70. If less than zero, enter amount owed on line 87.......................................................... 86 00 98 C  Checking or S  Savings 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

87 AMOUNT OWED: Add lines 67 and 85. Make check payable to Arizona Department of Revenue; write your SSN, 140NR on payment................................................................................................................................................................................................... 87 00

ADOR 10177 (23) AZ Form 140NR (2023)

 Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2023 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 31% (.31) 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: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2023 through December 31, 2023 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on line 5C. NOTE 3: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2023 Gifts by cash or check..................................................................................... 1C 00 2C 2023 Other than by cash or check......................................................................... 2C 00 3C Carryover from prior year....................................................................................... 3C 00 4C Add lines 1C through 3C and enter the total.......................................................... 4C 00 5C Total charitable contributions made in 2023 for which you are claiming a credit under Arizona law for the current (2023) or prior (2022) tax year........................... 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”........................................................................................................................... 6C 00 7C Multiply line 6C by 31% (.31) and enter the result.................................................. 7C 00 8C Enter your Arizona income ratio from page 1, line 27............................................. 8C • 9C Multiply line 7C by the ratio on line 8C and enter the result.................................... 9C 00 • Enter the amount shown on line 9C on page 2, line 54 • Be sure to check box 53S for Standard Deduction on line 53. • Check box 54C for charitable contributions on line 54. If you do not check this box, you may be denied the increased standard deduction.

ADOR 10177 (23) AZ Form 140NR (2023)

 Page 4 of 6 Your Name (as shown on page 1) Your Social Security Number 2023 Form 140NR Dependent and Other Exemption Information 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) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER. (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2023 (e) Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10g    10h    10i    10j    10k    10l    10m    10n    10o    10p    10q    Part 2: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) AGE 65 OR OVER (see instructions) C1 C2 (d) STILLBORN CHILD IN 2023 1    2    3    4    5    6    7    8    9    10    Enter the total number of individuals listed in Part 2 in box 49E on page 2, line 49.

ADOR 10177 (23) AZ Form 140NR (2023)

 Page 5 of 6 Your Name (as shown on page 1) Your Social Security Number 2023 Form 140NR - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6. Other Additions to Arizona Gross Income - Line 32 (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 2023………………………………………………………... C 00 D Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years……………………………................ D 00 E Adjustment for Net Operating loss due to Claim of Right............................................................................. E 00 F(a) Amount of Agricultural Water Conservation Expenses deducted under IRC for which a credit is claimed on Form 312................................................................................................................................................. F(a) 00 F(b) Addition to S Corporation income due to claiming Pas-Through Credit for Agricultural Water Conservation System (Credit 312). See instructions.......................................................................................................... F(b) 00 G(a) Adjusted Basis in Property for Which You Have Claimed a Credit for Invesment in Qualified Small Businesses (Form 338) that was sold or otherwise disposed of during the tax year. See instructions....... G(a) 00 G(b) Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equpment (Form 315) Before Taxable Year 2023 that was sold or otherwise disposed of during the tax year. See instructions... G(b) 00 G(c) Adjusted basis computed under IRC for Agricultural Pollution Control Equipment for which a credit was taken (Form 325) before taxable year 2023 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions..................................................................... G(c) 00 H Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for-profit basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their 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 Net capital (loss) derived from the exchange of legal tender: See instructions.................................................... K 00 L Entity-Level Income Tax Payment. See instructions................................................................................... L 00 M Motion Picture Production Costs. See instructions..................................................................................... M 00 N Other Adjustments Related to Tax Credits. See instructions....................................................................... N 00 O Other Adjustments. See instructions........................................................................................................... O 00 P Total Other Additions: Add all amounts and enter the total here and on page 1, line 32.......................... P 00

ADOR 10177 (23) AZ Form 140NR (2023)

 Page 6 of 6 Your Name (as shown on page 1) Your Social Security Number 2023 Form 140NR - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. 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. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business.......................................................................................................... H 00 I Americans with Disabilities Act – Access Expenditures…………………………………………………….............. I 00 J Exploration Expenses Deferred Before January 1, 1990............................................................................................ J 00 K Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16)................................................................................................................................. K 00 L S corporation Shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1(NR), line 20................................................................................................................................................... L 00 M Net capital gain derived from the exchange of legal tender: See instructions......................................................................... M 00 N Value of Virtual Currency and Non-Fungible Tokens Received at the Time of the Airdrop. See instructions.... N 00 O Gas Fees Not Included in Virtual Currency or Non-Fungible Token Basis. See instructions............................ O 00 P Other Adjustments - see instructions................................................................................................................... P 00 Q Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 45........................... Q 00

Include with your return. ADOR 10562 (23)

PAGE 1 of 2 Arizona Schedule A(NR) Itemized Deductions For Nonresidents 2023 Your Name as shown on Form 140NR Your Social Security Number Spouse’s Name as shown on Form 140NR (if filing joint) Spouse’s Social Security Number 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2................................................................................... 4 00 Adjustment to Interest Deduction 5 If 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 2023 that is equal to the amount of your 2023 federal credit.............................................................................................................................................................. 5 00 Adjustment to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law............................ 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 00 Itemized Deductions 8 Add the amounts on lines 3 and 5............................................................................ 8 00 9 Add the amounts on lines 4, 6 and 7........................................................................ 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. If less than zero, enter “0”.................................................................................................................... 14 00 15 Enter your Arizona income ratio from Form 140NR, page 1, line 27........................

15 • 16 Arizona itemized deductions: Multiply line 14 by the ratio on line 15. Enter the result here and on Form 140NR, page 2, line 53........................................................................................................................ .16 00 You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions on your Arizona return. IMPORTANT !

Your Name (as shown on page 1) Your Social Security Number 2023 Form 140NR Schedule A(NR) Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than charitable contributions. ADOR 10562 (23)

AZ Schedule A(NR) (2023)

PAGE 2 of 2 1A Total state income 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 state income 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

2023 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 do not itemize deductions on your 2023 federal return. 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 for 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 140NR, line 53 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 those items (1 through 4) apply, complete federal form 1040 Schedule A and then complete lines 1 through 15. 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 2023 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 claimed a credit on Arizona Form:

For: You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A.

321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public School 323 Contributions to Private School Tuition Organizations 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organization - Individual

Form 140NR Schedule A(NR) 2

If you claimed a credit on Arizona Form:

For:

340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2022 return for a contribution that you made during 2023 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2023 return even though you claimed the credit on your 2022 return. If you are claiming a credit on your 2023 return for a contribution made during 2024 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2024 return even though you are claiming the credit on your 2023 return. Line 7 - Adjustment to State Income Taxes Arizona Revised Statutes § 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 140NR Schedule A(NR) to determine the amount of your adjustment to enter on line 7. Lines 8 through 13 Complete lines 8 through 13 as instructed on the form. Line 14 - Adjusted Itemized Deductions Subtract line 13 from line 12. If less than zero, enter “0”. 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.

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2023 or fiscal year beginning M M D D 2 0 2 3 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (23) 1 Tax liability for 2023. You may estimate this amount....................................................................................... 1 00 2 Arizona income tax withheld during 2023....................................................................... 2 00 3 Arizona estimated tax payments for 2023...................................................................... 3 00 4 Credits you will claim on your 2023 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, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. If you are a calendar year filer, your request for a 2023 filing extension must be postmarked on or before April 15, 2024. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six‑month individual federal filing extension. 1 1 3 2 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2023 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date Individual Calendar Year Filers: This is a request for an automatic 6-month filing extension................................... October 15, 2024 Individual Fiscal Year Filers: Enter taxable year end date and 6-month extended due date............................... A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. M M D D Y Y Y Y M M D D Y Y Y Y 94 Your Daytime Phone (with area code): Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. 95. Filing Status. Must be the same as Form 140, 140A, 140EZ, 140 PTC, 140ET, 140NR, 140PY 95a Married filing joint return 95c Head of Household 95b Married filing separate return 95d Single City, Town or Post Office State ZIP Code

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Arizona Form 2023 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu.

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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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. Completing Form 204 • Enter your name and SSN on the first line 1. • If filing a joint return with your spouse, enter your spouse’s name and SSN on the second line 1. • Enter your current address on lines 2 and 3. • Box 95: Select the filing status that you will use on Form 140, 140A, 140EZ, 140PTC, 140ET, 140NR or 140PY. • Box 94: enter your daytime phone (with area code). • Check which form this filing extension request if filed for. • Complete the rest of form following the directions on the form. 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). 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 weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. Calendar year filers have until April 15, 2024 to file the request for an extension. This will allow you to file your return by October 15, 2024. Complete Form 204 to request an automatic 6-month extension. Write 2023 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, 2024 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

Arizona Form 204 2

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, 2024 even though your federal return is due on June 15, 2024. If you want to file your 2023 Arizona return after April 15, 2024 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, 2024. 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, 2024 even though your federal return will not be due until December 15, 2024. If you file your 2023 Arizona calendar year return after October 15, 2024 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 2023 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 2023. 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.

Arizona Form 140NR 17 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 your 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 2023 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 making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. I. Americans with Disabilities Act Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 A.R.S. 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. Include the amount of allowable expenses paid or incurred during the tax year. J. Exploration Expenses Deferred Before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. Sole Proprietorship – Marijuana Establishment and Testing Facilities and Dual Licensees that Elect to Operate on a for-profit basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. A Sole Proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “H”, cannot take this allowable subtraction”. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis.

Arizona Form 140NR 18 L. S corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products shown on your 120S Schedule K-1(NR), line 20. Do not include Cost of Goods Sold in the total amount of expenses reported on this line. M. Net Capital Gain from the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 page 5, “K”. 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. N. Virtual Currency and Non-Fungible Tokens If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Airdrop as the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. • Non-fungible tokens (NFT) as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset. • Virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency. • Foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance. O. Gas Fees or Non-Fungible Token Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Gas Fees as a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or an NFT. P. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. Q. Total Other Subtractions from Arizona Gross Income Add all amounts on page 6 and enter the total on page 2, line 45. Line 46 Subtract lines 43, 44 and 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. 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, you cannot claim this individual for the dependent tax credit on line 59. In this case do not include this person in Box 10b.

Arizona Form 140NR 19 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) if either of the following applies: 1. In 2023, 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. 2. In 2023, 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, 2024 (born 1/1/1959), that person would be considered to be age 65 at the end of 2023 for federal income tax purposes and likewise for Arizona income tax purposes. • A stillborn child if the following apply: 1. The stillbirth occurred during 2023. 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 exemption 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 2023 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 Deductions 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. 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 for 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.

Arizona Form 140NR 20 Standard Deduction Chart If your filing status is: Your standard deduction prior to prorating is: • Single $13,850 • Married filing joint $27,700 • Married filing separate $13,850 • Head of Household $20,800 NOTE: A surviving spouse shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse. If you and your deceased spouse would have filed a joint tax return for tax year 2023, enter $27,700 on line 1 in the worksheet below. If you and deceased spouse would have filed separate tax returns for tax year 2023, enter $13,850 on line 1 in the worksheet below. 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 31% (.31) of the total amount of a taxpayer’s charitable contributions 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. Line 56 - Tax Amount Multiply line 55 by 2.5% (.025). 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 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) Credit amount (d) Multiply 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. Table II If your filing status is single, married filing separate, or head of household: is your federal adjusted gross income on page 1, line 25, more than $200,000?

Yes No If your filing status is married filing joint: is your federal adjusted gross income on page 1, line 25, more than $400,000?

Yes No

.

Arizona Form 140NR 21 • 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 2023 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……………………………… If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 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 2023 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………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 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 Use Table V to determine the percentage to enter on line 5, of Table III or Table IV.

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 NOTE: If you elect to report small business income on Form 140NR-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the specific credit form and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140NR for taxes paid to other states or country on income not reported on Form 140NR-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or county. See Form 309-SBI and instructions for more information. 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. 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 60. 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 This credit was repealed for individual taxpayers for tax years beginning from and after December 31, 2021. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 315 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.

Arizona Form 140NR 22 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 Employing National Guard Members You may qualify for this credit if you are an employer who has an employee who 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 Organizations (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 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit on the appropriate form. Then complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 62. 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”.

Arizona Form 140NR 23 Totaling Payments and Refundable Credits Line 62 - 2023 Arizona Income Tax Withheld Enter the 2023 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) – 2023 Arizona Estimated Tax Payments Including Amount Applied from 2022 Return; and Arizona Claim of Right Use this line if you did one of the following: • made estimated income tax payments to Arizona for 2023; • applied any of your refund from your 2022 Arizona return to 2023 estimated taxes for Arizona; or • 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 2023 taxes. NOTE: If you are married and made joint Arizona estimated payments for 2023, but are filing separate 2023 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 63b. 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 - 2023 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 Motion Picture Production Costs (Form 334) • 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 (Arizona 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 Motion Picture Production Costs (Arizona Form 334) You may qualify for the refundable credit for the motion picture production costs if the credit exceeds your taxable income. Pre-approval and post-approval are required through the ACA to qualify for this credit. For more information about this credit and to determine whether you may claim a refund of this credit, see Arizona Form 334. If you are claiming a refund from Form 334, enter the amount from Form 334, Part 1, line 6. Credit for Qualified Facilities (Arizona 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 following table to figure the amount to enter on line 65. 2023 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

2 Enter the refundable credit from Form 334, Part 1, line 6.

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

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

Arizona Form 140NR 24 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 2024 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 69 to 2024, you cannot use that amount to pay any tax that is later found to be due for 2024. You also may not claim a refund for that amount until you file your 2024 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. 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.

Arizona Form 140NR 25 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. 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 2023 if: Your filing status is: AND Your Arizona gross income for 2022 was greater than: AND Your Arizona gross income for 2023 was greater than: Single $ 75,000 $ 75,000 Married filing Joint $ 150,000 $ 150,000 Married filing Separate $ 75,000 $ 75,000 Head of Household $ 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 2023 if the following apply: 1. You are a calendar year filer. You file your Arizona return by March 1, 2024. 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. Complete Form 822. This form is available at: azdor.gov/forms. Select “Forms” on the home page and click on “See All Forms” then type 822 in the Search box. 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.

Arizona Form 140NR 26 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. 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, direct debit through your software vendor 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, Form 140NR 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 2023. 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.

Arizona Form 140NR 27 Installment Payments If you cannot pay the full amount shown on line 87 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. 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, 2024. 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. 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 Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140NR-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140NR in the same envelope. • If you are mailing your return, be sure to include Form 140NR, pages 1 and 2 any other required forms. • Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. • If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. • If mailing more than one tax year return, use a separate envelope for each return. Where Should I Mail My Return? If you are not filing Form 140NR-SBI and are including a payment with your Form 140NR 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 If you are filing Form 140NR and Form 140NR-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. • After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to

Arizona Department of Revenue

PO Box 52016

Phoenix, AZ 85072-2016 • After applying the overpayment, if there is a net refund mail both returns 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, 2024. 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

Arizona Form 140NR 28 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 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 2023 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.

Arizona Form 140NR 29

Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011 2023 Original return 2023 Amended return

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 Form 140NR, line 39, for net long-term capital gain derived from investment in qualified small business……………………………………………………………………. $ 00

3. Enter the amount included on the schedule “Other Subtractions from Income”, page 6, item “M”, for 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 the schedule “Other Additions to Income”, page 5, item “K”, 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 • If the amount on line 7 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140NR, line 37. • If the amount on line 7 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140NR, line 37.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140NR-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. 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 your computation.

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

Arizona Form 140NR 30

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. NOTE: If a pass-through entity (PTE) elects to pay income tax at the entity-level on behalf of the individual partner or shareholder and that individual does not OPT OUT of the election, the PTE cannot include that individual partner or shareholder as a member of the nonresident composite return. In this case, the PTE must still meet the requirement to have a minimum of 10 members to file a nonresident composite return. 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 and 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 Multiply line 55 by 2.5% (.025). Enter the aggregate tax due for all members of the composite return. Line 62 – 2023 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 (Box 63a) – 2023 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 (box 63a) if the filing entity did any of the following: • Made estimated income tax payments to Arizona for 2023. • Applied any of the refund from the 2022 Arizona composite nonresident return to 2023 estimated taxes for Arizona. Line 63c Enter the amount from box 63a. Line 64 - 2023 Extension Payment (Form 204) Complete line 64 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 63c 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 2024 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.

Arizona Form 140NR 31

NOTE: If the entity applies any of the amount shown on line 68 to the 2024 composite return, the entity cannot use that amount to pay any tax that is later found to be due for 2023. The entity also may not claim a refund for that amount until the entity files its 2024 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. 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 • 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 24 and 25. 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 2023. There is no fee to use this method. To make an electronic payment, go to www.AZTaxes.gov. Select 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.

Arizona Form 140NR 32

2023 Form 140NR Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order

Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R

Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A(NR) (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I, 334, 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Only include those forms showing Arizona income tax withholding. Form 131 (if claiming a refund on behalf of a deceased taxpayer) AZ Schedule DFE (if reporting subtraction on Form 140NR, page 6)

Form 140NR – pages 5 and/or 6 (if completed)

Form 140NR – page 3 and 4 (if completed)

Form 140NR – pages 1 and 2

Form 301-SBI and all credit forms reported on Form 301-SBI

Form131-SBI (if claiming a refund on behalf of a deceased taxpayer) Form 140NR-SBI (if filing)

Form 203 (if filing)

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 when you file your state and federal taxes.

Tax Year 2023 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $17,640 ($24,210 if MFJ) $600 1 $46,560 ($53,120 if MFJ) $3,995 2 $52,918 ($59,478 if MFJ) $6,604 3 or more $56,838 ($63,698 if MFJ) $7,430 *your age 25 - 64 MFJ = Married Filed Jointly

Tax Year 2023 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 2023 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

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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 Up to $100 per household your federal adjusted gross income was $ 25,000 or less ($12,500 if single) you were not sentenced for at least 60 days of 2023 to a county, state or federal prison Before using paper, E-File and select the Direct Deposit option for a faster refund!

Be sure to use www.azdor.gov to access your preferred software vendor to ensure free filing for your federal and state returns. Do-It-Yourself with fillable forms. Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box. You may qualify to file your federal and Arizona individual income returns for FREE!! 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

CONTENTS 140NR CREDITS Credits from Form 301............. 41 Credit for taxes paid to another state or country........... 41 DEDUCTIONS Itemized deductions................. 39 Standard deduction.................. 39 EXEMPTIONS Age 65 or over........................ 12 Blind....................................... 12 Dependents............................... 13 FILING INFORMATION Do you have to file.................... 7 Estimated tax............................ 10 Filing extensions...................... 9 Penalties and interest............... 9-10 When to file.............................. 9 Mailing your return................ 47 FILING STATUS All filing statuses...................... 11 INCOME Additions to income................. 15 Federal adjusted gross income. 15 Subtractions from income....... 19 ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 QUICK AND EASY ACCESS TO TAX HELP AND FORMS Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. Visit azdor.gov for taxpayer support services that may be accessed by phone or computer. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928...... (800) 352-4090 Did You Know? When you use tax software all the hard work is done 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 • Free E-File available for those who qualify Before using paper, E-File and select the Direct Deposit option for a faster refund! PREPARING YOUR RETURN • Ensure all the necessary lines, amounts, and forms are filled out properly. Check to make sure that calculations on your return are correct as a math error can cause delays in processing your return. • Double check spelling of names. Avoid using two different names. • Make sure that you legibly write your complete 9-digit Social Security Number (SSN) on your return. Without proper identification, the Arizona Department of Revenue (ADOR) is unable to process the return. • Write clearly or use fillable forms. Handwriting can easily be mistaken and mis-typed into ADOR systems. • Enter your routing number or account number correctly in all appropriate boxes. You are responsible for this information. • Send payment with the correct return. Send the Arizona Department of Revenue payments with the state return to ADOR and the IRS payment with the federal return to the IRS. The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account. • If you are filing a joint return, enter the SSNs in the same order every year. SUBMITTING YOUR RETURN • Sign and date the return. • Do not staple any items to the return. • Make sure you use correct postage on the envelope. • Ensure all pages are sent in together as ADOR will not process partial returns. • Include your check or money order with your return. Please do not send cash. • Include a voucher with the payment if not sending it with the return. ADOR spends time researching and connecting the payment to an account if no return or voucher is included delaying the return process. • All envelopes should be addressed to Arizona Department of Revenue then add the PO Box for the area you wish to reach. • By law, ADOR must offset any refunds to certain government agencies that have a claim against you. If you received a letter informing you of the offset, please contact the agency listed in the letter. • Please allow 8-10 weeks for processing. Do not resubmit a return or submit an electronic payment if you mailed a paper check. • Payments are one of the last items to be processed. The postmark date is used to determine if income payments and returns are timely.

u Pay your taxes by credit card! American Express • Visa • Discover Card • MasterCard Before using paper, E-File and select the Direct Deposit option Fast: Faster processing of your refund and money in your account sooner. In some cases, 6 times faster. 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. 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, 2024. If you use the amounts from your 2024 federal tax return to complete your Arizona return and the Legislature does not adopt the 2024 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 2024 conformity. This Booklet Contains: • Form 140 – Resident Personal Income Tax Return • Form 140 Schedule A – Itemized Deduction Adjustments • Form 204 – Extension Request 2 24 Arizona Form 140 Resident Personal Income Tax Booklet Who can use Arizona Form 140? You, and your spouse if married filing a joint return, may file Form 140 only if you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2024 if any of the following apply to you. • Your Arizona taxable income is $50,000 or more. • You received active duty military pay as a member of the U.S. Armed Forces. • You received pay for active service as a reservist or a National Guard member. • You are making adjustments to income. • You itemize deductions. • You claim tax credits other than the family income tax credit, the property tax credit or the credit for increased excise taxes. • You are claiming estimated payments. Where’s my Refund? Check your refund status at www.AZTaxes.gov

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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 2024, except for changes Congress made to the federal tax code during 2024, and the following applies: 1. The changes affect how you figure your federal adjusted gross income. AND/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 kept the same. The legislature will address this issue when it is in session during 2025. The Arizona Department of Revenue must publish these forms before this issue is addressed by the legislature. When ADOR went to print, Arizona had not yet adopted any federal tax law changes made after January 1, 2024. What does this mean to you? It means that if any of the federal law changes made after January 1, 2024 apply to your 2024 return, you can opt to file your 2024 return using one of the following methods: 1. You can wait and file your 2024 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 2024 return, assuming that the federal law changes will be adopted. The 2024 tax forms make these assumptions. If you opt for method 2, one of the following will apply: x If Arizona adopts those changes, you do not have to do anything more. x If Arizona does not adopt all federal changes, you may need to amend your 2024 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 web page at https://azdor.gov/legal-research/conformity-irc. x 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 2024 return, and you file and pay the required amended return by the extended due date of your 2025 return. 3. You can file your 2024 return, assuming that we will not adopt the federal law changes. If you opt for this method, you will have to do the following: x You will have to research all of the federal changes made after January 1, 2024. x You will have to figure out if any of those changes apply to you. x You will have to figure out how to make adjustments for those changes on your return. If you opt for method 3, one of the following will apply: x If Arizona does not adopt those changes, you do not have to do anything more. x If Arizona adopts those changes, you may need to amend your 2024 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 web page at https://azdor.gov/legal-research/conformity-irc. 3

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Individual Income Tax - Highlights 2024 Due Date for Calendar Year Filer Your 2024 individual income tax return is due by midnight on April 15, 2025. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2025. Arizona 2024 Changes Some of these changes include: 2024 Arizona Standard Deduction Amounts Adjusted The 2024 Arizona standard deduction amounts are: y $ 14,600 for a single taxpayer or a married taxpayer filing a separate return; y $ 29,200 for a married couple filing a joint return; and y $ 21,900 for individuals filing a head of household return. Change to Standard Deduction Increase for Charitable Contributions For taxpayers who do not itemized deductions on their 2024 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2024, the allowable portion of your charitable contributions used to compute your Standard Deduction Increased was increased from 31% to 33% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR). 2024 New Tax Rate of 2.5% for All Income Levels and Filing Status The Optional Tax Table and the X and Y Tax Table are now obsolete. 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 2024, the maximum current year credit is: x $731 for single and head of household taxpayers. x $1,459 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 2024, the maximum current year credit is: x $728 for single and head of household taxpayers. x $1,451 for married taxpayers filing a joint return. Credit for Contributions to Qualifying Foster Care Charitable Organizations This individual income tax credit is available for contributions to Qualifying Foster Care Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system. The tax credit is claimed on Form 352. The maximum QFCO credit donation amount for 2024: x $587 single, married filing separate or head of household x $1,173 married filing joint. The maximum QFCO credit donation amount for 2025: x $618 single, married filing separate or head of household; x $1,234 married filing joint. Please Note: Arizona law allows QFCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. The maximum credit that can be claimed on the 2024 Arizona return for donations made to QFCO's is $587 for single, married filing separate and head of household taxpayers, and $1,173 for married filing joint taxpayers. If a taxpayer makes a QFCO donation from January 1, 2025 through April 15, 2025 and wants to claim the higher 2025 maximum credit amount, the taxpayer will need to claim the credit on their 2025 Arizona return filed in 2026. Credit for Contributions to Qualifying Charitable Organizations This individual income tax credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321. The maximum QCO credit donation amount for 2024: x $470 single, married filing separate or head of household; x $938 married filing joint. The maximum QCO credit donation amount for 2025: x $495 single, married filing separate or head of household; x $987 married filing joint. Please Note: Arizona law allows QCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. The maximum credit that can be claimed on the 2024 Arizona return for donations made to QCO's is 5

Individual Income Tax - Highlights 2024 $470 for single, married filing separate or head of household taxpayers, and $938 for married filing joint taxpayers. If a taxpayer makes a QCO donation from January 1, 2025 through April 15, 2025 and wants to claim the higher 2025 maximum credit amount, the taxpayer will need to claim the credit on their 2025 Arizona return filed in 2026. Credit for Solar Energy Devices (Commercial and Industrial Applications) Form 336 Because this credit was required to be established by the 2018 tax year and the five year carry forward period expired in 2023 this form will not be available for the 2024 tax year and beyond. 6

Arizona Form 2024 Resident Personal Income Tax Return 140 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. Leave the Paper Behind - e-file! x Quicker Refunds x Accurate x Proof of Acceptance x Free ** No more paper, math errors, or mailing delays when you e-file! Get your refund quicker with direct deposit. E-file today and pay by April 15, 2025 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. AVOID PROCESSING DELAYS: Are you mailing your Arizona income tax return? If you are mailing your return to the department, see the last page of these instructions for assembly order (form sequence) information. Who Must Use Form 140? You (and your spouse, if married filing a joint return) may file Form 140 only if both of you are full year residents of Arizona. You must use Form 140 rather than Form 140A or Form 140EZ to file for 2024 if any of the following apply to you: x Your Arizona taxable income is $50,000 or more, regardless of filing status. x You are making adjustments to income. x You itemize deductions. (Continued on next column.) x You claim tax credits other than the family income tax credit, the credit for increased excise taxes, or the property tax credit. x You are claiming estimated payments. x You received the 2024 Arizona Families Tax Rebate and are subtracting the amount of your rebate received from Arizona gross income (see page 6, item “U”). Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: x Single $ 14,600 x Married filing joint $ 29,200 x Married filing separate $ 14,600 x Head of Household $ 21,900 If you are an Arizona resident, you must report income from all sources including out-of-state income. 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 that Arizona law does not tax. Income that Arizona law does not tax includes: w s: x interest from U.S. Government obligations;s; x social security retirement benefits received under Title II of the Social Security Act; t bene ct; x 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; s pa d; x pay received for active service as a member of the Reserves, National Guard or the U.S. Armed Forces; or x benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. NOTE: Even if you are not required to file, you must still file a return to get a refund of any Arizona income tax withheld. 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: x You are an enrolled member of an Indian tribe. x You live on the reservation established for that tribe. x You earned all of your income on that reservation. 7

Arizona Form 140 2 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? You must file if you meet the Arizona filing requirements unless all of the following apply to you: x You are an active duty member of the United States armed forces. x Your only income for the taxable year is pay received for active duty military service. x 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 were an Arizona resident when you entered the service, you remain an Arizona resident, no matter where you are stationed, until you establish a new domicile. As an Arizona resident, you must report all of your income to Arizona, no matter where you are stationed. You must include your military pay, but using Form 140, you may subtract all pay received for active duty military service to the extent it is included in your federal adjusted gross income. If you are not an Arizona resident, but stationed in Arizona, the following apply to you: x You are not subject to Arizona income tax on your military pay. x You must report any other income you earn in Arizona using Form 140NR, Nonresident Personal Income Tax Return. 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. An Arizona resident is subject to Arizona tax on all income no matter where the income is earned. 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 2024: x You moved into Arizona with the intent of becoming a resident. x You moved out of Arizona with the intent of giving up your Arizona residency. Nonresidents If you are a nonresident (including nonresident aliens), 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 2024, 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 and enter the date of death after the decedent's name. If your spouse died in 2024 and you did not remarry in 2024 or if your spouse died in 2025 before filing a return for 2024, you may file a joint return. If your spouse died in 2024, the joint return should show your spouse's 2024 income before death and your income for all of 2024. If your spouse died in 2025, before filing the 2024 return, the joint return should show all of your income and all of your spouse's income for 2024. 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. 8

Arizona Form 140 3 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 form behind the 140 return, when mailing Form 140. If you are claiming a refund on Form 140-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140-SBI when mailing both returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2024 calendar year tax return is due no later than midnight, April 15, 2025. File your return as soon as you can after January 1, 2025 but no later than April 15, 2025. 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 automatic 6-month extension if you know you will not be able to file on time. If you request an extension to file your 2024 calendar year tax return, your due date is October 15, 2025 to timely file your 2024 tax return. 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 x Apply for a state extension (Arizona Form 204). To apply for a state extension, file Form 204 by April 15, 2025. 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. x 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? As a Nonresident Alien, do not file Form 140. Use Form 140NR, Nonresident Personal Income Tax Return, to report your Arizona sourced income. File Form 140NR-SBI if you elect to report your Arizona sourced small business income on the Small Business Income Tax Return. See the instructions for Form 140NR for your filing due date(s).

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 2024 calendar year return by April 15, 2025 our 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 a 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 140. 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. If the IRS makes a change to your federal taxable income for any year, you must report that change to Arizona. You must file

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Arizona Form 140 4 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 and 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 2025? You must make Arizona estimated income tax payments during 2025 if: Your filing status is: AND your Arizona gross income for 2024 was greater than: AND your Arizona gross income for 2025 is greater than: Single $ 75,000 $ 75,000 Married filing joint $ 150,000 $ 150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2024, you must make estimated payments during 2025 unless you are sure you will not meet the threshold for 2025. As a full year resident, your Arizona gross income is your federal adjusted gross income. Your Arizona gross income is on line 12 of the 2024 Form 140. 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. 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 x You must complete your federal return before you can start your Arizona return. x Make sure that you enter your Social Security Number (SSN) on your return. x Complete your return using black ink. x 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. x If you are mailing your return, see the last page of these instructions for the assembly order. x Make sure you include your daytime telephone number. x If filing a fiscal year return, fill in the period covered. Entering Your Name, Address and SSN Lines 1, 2, and 3 NOTE: Make sure you enter your SSN on the appropriate line and your SSN is correct. If you are filing a joint return, also make sure 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. Enter your spouse’s name and SSN on the second line 1. 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. DO YOU HAVE A COMPLICATED RETURN? E-file makes filing a complex return simple! E-file software offers: x easy step-by-step instructions x error detection before filing x Easy form selection x Maximum deductions For a list of approved software visit www.azdor.gov 10

Arizona Form 140 5 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 in 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: x his or her PTIN; x his or her SSN; or x the EIN for the business. A paid preparer who fails to include the proper identification number may also 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 140. 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, 2024. 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 2024 and you did not remarry in 2024. See page 2 of these instructions for details. Arizona Form 140 is for full year residents only. You may not file a joint income tax return on Form 140 if any of the following apply: x Your spouse is a nonresident alien (citizen of and living in another country). x Your spouse is a resident of another state. x Your spouse is a part-year Arizona resident. If filing a joint return with your nonresident spouse, you must file a joint return using Arizona Form 140NR. See Form 140NR instructions. If filing a joint return with your part-year resident spouse, you must file a joint return using Arizona Form 140PY. See Form 140PY instructions. For more information on filing a joint tax return with your part-year resident or nonresident 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 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: x You qualify to file as head of household on your federal return; or x You qualify to file as a qualifying widow or widower on your federal return. Box 6 - Married Filing Separate Return If you are married and filing a separate return, check box 6. Enter your spouse's name and SSN on the second line 1. If you were married as of December 31, 2024, 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 out how much income to report using community property laws. Under these laws, a separate return must reflect one-half of the community income from all sources plus any separate income. When you file separate returns, you must account for community deductions and credits on the same basis as community income. Both you and your spouse must either itemize or not itemize. If one of you itemizes, you both must itemize. If one of you takes a standard deduction, you both must take a standard deduction. One of you may not claim a standard deduction while the other itemizes.

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Arizona Form 140 6 If you and your spouse support a dependent child from community income, either you or your spouse may claim the dependent. Both of you cannot claim the same dependent on both returns. For more information, see the department’s rulings, ITR 93-18, Income Reporting Requirements for Married Arizona Residents Who File Separate Arizona Individual Income Tax Returns; and ITR 93-19, Deductions, Exemptions, and Credits for Married Taxpayers Who File Separate Arizona Individual Income Tax Returns. NOTE: In some cases, you may treat community income as separate income. For more information, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. If one spouse is a resident and the other spouse is not, other special rules may apply when filing a separate return. 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 see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2024. You are single if any of the following apply to you: x You have never been married. x You are legally separated under a decree of divorce or of separate maintenance. x You were widowed before January 1, 2024, and you did not remarry in 2024, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8, 9, and 11a Enter the number of exemptions you are claiming in boxes 8, 9, and 11a. Do not put a check mark or an “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2025 (born 1/1/1960), that person is considered to be age 65 at the end of 2024 for federal income tax purposes and likewise for Arizona income tax purposes. x If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2024 and not claimed as a dependent by another taxpayer. x If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2024 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2024 and neither of you are claimed as a dependent by another taxpayer. x If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on their own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2024, you must get a statement certified by your eye doctor or registered optometrist that either: x You cannot see better than 20/200 in your better eye with glasses or contact lenses or x Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. x If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. x 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" in box 9 if both you and your spouse are totally or partially blind and your spouse meets the above criteria. x If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if (1) your spouse is totally or partially blind, (2) has no Arizona adjusted gross income for the calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria. Box 11a - Qualifying Parents and Grandparents NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. You must complete the qualifying parent and grandparent section (lines 11b and 11c) on page 1 (and Part 2 on page 4, if more space is needed) before you can total your exemptions for qualifying parents and grandparents. Be sure to check the box on page 1 indicating you are completing page 4. A qualifying parent or grandparent may be any one of the following: x Your parent, grandparent, or great-grandparent, etc. x If married filing a joint return, your spouse’s parent, grandparent, or great-grandparent, etc. 12

Arizona Form 140 7 You may claim this exemption if all of the following apply: 1. The parent, grandparent, or great-grandparent was 65 years old or older during 2024. 2. The parent, grandparent, or great-grandparent lived in your principal residence for the entire taxable year. If your parent or grandparent died during the taxable year, this requirement will still be met if he or she lived with you for the entire part of the year in which he or she was alive. Temporary absences by the parent or grandparent for special circumstances, such as a hospital stay or care in a hospice facility, count as time lived in the taxpayer’s principle residence. 3. You paid more than one-half of the support and maintenance costs of the parent or grandparent during the taxable year. To help you determine if you paid more than one-half of your parent or grandparent’s support during the taxable year, it is recommended that you review the department’s procedure, ITP 14-1, Procedure for Determining Support for Purposes of the Parents and Grandparents Exemption Allowed under A.R.S. § 43-1023(C) and complete the worksheet. Keep the worksheet for your records. 4. The parent or grandparent required assistance with activities of daily living. The term “activities of daily living” means two or more of the following listed categories. Activities of daily living include both basic activities of daily living and instrumental activities of daily living. The categories of activities of daily living are: dressing, eating, ambulating, toileting, medicating and hygiene, shopping, housekeeping, managing personal finances, basic communication, food-preparation, and transportation. For more information regarding what the term “activities of daily living” means when determining an Arizona resident taxpayer’s eligibility for this exemption, see the department’s ruling, ITR 14-3, "Activities of Daily Living" for the Purpose of the Exemption Allowed Under A.R.S. § 43-1023(C). To help you determine if your parent or grandparent required assistance with activities of daily living to meet this requirement, it is recommended that you review the department’s procedure, ITP 14-2, Procedure for Determining Whether a Parent or Grandparent Requires Assistance with Activities of Daily Living for Purposes of the Exemption Allowed under A.R.S. § 43-1023(C) and complete the checklist. Keep the checklist for your records. Lines 11b and 11c For each qualifying parent and grandparent, enter the following information: a) first and last name; b) social security number; c) relationship to taxpayer; d) the number of months this person lived in your home; e) check this box if the person is age 65 or over; f) check this box if the person died in 2024. You may lose the exemption for qualifying parents and grandparents if you do not furnish this information. Enter the total number of qualifying parents/grandparents in box 11a. Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit claimed on line 49. NOTE: If a person who is a qualifying parent or grandparent also qualifies as your dependent, you may include that person as a dependent in box 10b to compute the allowable Dependent Tax Credit, or you may claim that person as a qualifying parent or grandparent in box 11a. You may not include the same person in both box 10b and box 11a. Lines 10c through 10e You must complete the dependent information section (lines 10c through 10e) on page 1 (and Part 1 on page 4, if more space is needed) for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: 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? 13

Arizona Form 140 8 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. Totaling Your Income Line 12 - Federal Adjusted Gross Income You must complete your federal return before you enter an amount on line 12. You must complete a 2024 federal return to determine your federal adjusted gross income, even if you are not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income. Your federal adjusted gross income is your Arizona gross income. NOTE: Be sure to use your federal adjusted gross income and not your federal taxable income. If the amount on line 12 is more than $75,000 ($150,000 if filing a joint return), you may need to make estimated payments. See "Do You Need to Make Estimated Payments in 2025?" on page 4. Arizona Small Business Income Tax Return Individuals may elect to report their small business income on Arizona Form 140-SBI, Small Business Income (SBI), for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140-SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report Small Business Income on Arizona Form 140-SBI? Taxpayers make the election by simply completing Form 140-SBI reporting their small business income and including the completed form with their Arizona Form 140 tax return, when filed. NOTE: You must include Form 140-SBI with your Form 140, when filed. If you do not include Form 140-SBI with your Form 140, processing of your return may be delayed or your subtraction on line 13 may be denied. See the Mailing instructions for the correct address when mailing both Form 140 and Form 140-SBI. Modified Federal Adjusted Gross Income Line 13 - Small Business Income If you elect to report your small business income on Arizona Form 140-SBI, check the box on line 13 and enter the amount of small business income reported on Form 140-SBI, line 10.

NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140-SBI form instructions for completing a “zero” tax return. Line 14 – Modified Federal Adjusted Gross Income Subtract line 13 from line 12. Additions to Income NOTE: x If you are electing to report your small business income on Form 140-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. x If you are not filing Form 140-SBI, make that addition on Form 140. Line 15 - Non-Arizona Municipal Interest If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the amount of interest income from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return. If you received tax exempt interest from municipal bonds, keep a schedule listing the payors and the amount received from each payor for your records. You should also keep supporting documents for amounts received from Arizona municipal bonds that are exempt from Arizona income tax. These may be items such as bank statements, brokerage statements, etc. Line 16 - Partnership Income Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Complete line 16 if you received an Arizona Form 165 Schedule K-1 and line 3 shows a difference between federal and state distributable income. If the difference reported on line 3 of your Form 165 Schedule K-1 is a positive number, enter that difference as an addition on line 16. NOTE: If the difference reported on line 3 of your Form 165 Schedule K-1 is a negative number, enter the difference on 27. Line 17 - Total Federal Depreciation If you are making the small business election and this addition is directly related to small business income reported on 14

Arizona Form 140 9 Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. Enter the total amount of depreciation deducted on your federal return. If you make an entry here, you should also take a subtraction on line 26. To figure out how much you should subtract, see the instructions for line 26. Line 18 - Other Additions to Arizona Gross Income NOTE: x If you are electing to report your small business income on Form 140-SBI and if any of the following “other additions” are directly related to the small business income, report that addition on Form 140-SBI. If the addition is not directly related to small business income, make the addition on Form 140. x If you are not filing Form 140-SBI, make that “other addition” on Form 140. Use line 18 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 18 complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 18, do not include page 5 with your return. You may either add (on line 18) or subtract (on line 36) items A and B, depending on your situation. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: x one-half of the community income from all sources, and x all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Fiduciary Adjustment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. A fiduciary uses Arizona Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the trust or estate. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a positive number, include that amount on line 18. NOTE: If the amount reported on line 3 of your Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. C. Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return Make this adjustment if you use federal averaging for lump-sum distributions from your pension or profit-sharing plan. Arizona law does not provide for averaging. Enter the amount of the distribution that you treated as ordinary income on your federal return. If you choose to treat the capital gain portion of the distribution as ordinary income, you must also include that amount. For more information, see the department’s ruling, ITR 93-5, Arizona's Income Tax Treatment of the Capital Gain Portion of a Lump Sum Distribution from a Qualified Retirement Plan. D. 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 such amounts to your Arizona gross income. E. Claim of Right Adjustment for Amounts Repaid in 2024 NOTE: For items E, Fa and Fb; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2024, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return if the income were reported in 2024, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: x During 2024, you were required to repay amounts held under a claim of right. x The amount required to be repaid during 2024 was more than $3,000. x You took a deduction for the amount repaid on your 2024 federal income tax return. If the above apply, include the amount deducted on your federal income tax return. 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. F(a). Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years You must make an entry here if all of the following apply: x During a year prior to 2024, you were required to repay amounts held under a claim of right. x You computed your tax for that prior year under Arizona's claim of right provisions. x A net operating loss or capital loss was established due to the repayment made in the prior year.

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Arizona Form 140 10 x You are entitled to take that net operating loss or capital loss carryover into account when computing your 2024 Arizona taxable income. x The amount of the loss carryover included in your federal 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 federal adjusted gross income is more than the amount allowed for the taxable year under Arizona law. F(b). Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. G(a). Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. G(b). Addition to S Corporation Income Due to Claiming Pass-through Credit for Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. 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 (Form 312-S, line 1). You must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. H(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338).

H(b). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). H(c). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is pollution control equipment for which a credit (Form 315) was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1081 (Credit 315). I. Nonqualified Withdrawals from 529 College Savings Plans You must make an addition to income if both of the following apply to you: x You received a nonqualified withdrawal from a 529 college savings plan. x You did not include the amount of the withdrawal in your federal adjusted gross income. The amount that you must include is the amount withdrawn, but no more than the difference between the amount of contributions subtracted in prior years and the amount added in any prior years. A nonqualified withdrawal is a withdrawal other than any of the following: x A qualified withdrawal. A qualified withdrawal is a withdrawal from an account to pay the qualified higher education expenses of the designated beneficiary of the account. x A withdrawal made as the result of the death or disability of the designated beneficiary of an account. x A withdrawal that is made on the account of a scholarship, or the allowance or payment described in IRC § 135(d)(1)(B) or (C), and that is received by the designated beneficiary, but only to the extent of the amount of this scholarship, allowance or payment. x A rollover or change of designated beneficiary. 16

Arizona Form 140 11 J. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. K. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident An individual cannot include a federal NOL carryforward deduction incurred from non-Arizona sources while the taxpayer was an Arizona nonresident in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of the NOL carryforward deduction included in the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-5, Can a Net Operating Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? NOTE: For a non-Arizona source loss incurred while the taxpayer was an Arizona nonresident, the taxpayer would not be allowed to amend a prior year resident Arizona income tax return to claim the NOL carry back deduction. L. Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency NOTE: This addition is not related to small business income and should not be reported on Form 140-SBI. Make this addition on Form 140. An individual cannot include a capital loss carryforward deduction, incurred from non-Arizona sources while the taxpayer was an Arizona nonresident, in the Arizona taxable income of a return filed for a taxable year in which the taxpayer is an Arizona resident. Therefore, a capital loss incurred from non-Arizona sources while the taxpayer was an Arizona nonresident cannot be carried forward to a taxpayer's Arizona resident return when the loss carryover is reflected in the taxpayer's federal adjusted gross income. The taxpayer must make an addition to Arizona gross income on the full-year Arizona resident return for the amount of such capital loss carryforward deduction included in the computation of the taxpayer’s federal adjusted gross income. For more information, see the department’s ruling, ITR 13-6, Can a Capital Loss Incurred as a Non-Resident Be Used to Offset Income in a Year in Which the Taxpayer Is A Resident? M. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If a subtraction is taken on line 36, Other Subtractions from Income (Item M), for the full amount of eligible business access expenditures paid or incurred during the taxable year to comply with the Americans with Disabilities Act of 1990 or A.R.S Title 41, chapter 9, article 8; you must make an addition to Arizona gross income for any amount that is included in the computation of federal adjusted gross income for the current year, plus any federally amortized amounts. N. Amortization or Depreciation for Child Care Facility You may need to make an addition for depreciation or amortization if you elected to amortize the cost of a child care 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. O. Net Capital (Loss) from Exchange of One Kind of Legal Tender for another Kind of Legal Tender NOTE: If you elected to file the Arizona Small Business Income Tax Return, only claim the addition on this return if the net capital loss to which the addition relates was not moved to the Arizona Small Business Income Tax Return. 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, Form 120S Schedule K-1, and Form 141AZ Schedule K-1. Enter the amount of any net capital (loss) 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 page 6, “R”.

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Arizona Form 140 12 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. P. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2024. Enter the total amount of tax paid shown on: x Arizona Form 165, Schedule K-1, Part 7, lines 12 to 15. x Arizona Form 120S, Schedule K-1, Part 5, lines 9 to 12. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2024. Tax amounts paid in 2025 for tax year 2024 will be added-back on your 2025 tax return. These payments include any 4th QTR estimated taxes paid in January 2025 and any 2024 tax payments made with the Entity’s tax return on your behalf. Q. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. R. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2024, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. S. Other Adjustments If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not take the addition on Form 140, enter the addition on Form 140-SBI. 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. T. Total Other Additions to Arizona Gross Income Add all amounts from page 5, and enter the total on line 18. Line 19 - Subtotal Add lines 14 through 18 and enter the total. Subtractions from Income NOTE: x If you are electing to report your small business income on Form 140-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. x If you are not filing Form 140-SBI, take that subtraction on Form 140. You may only subtract those items for which statutory authority exists. You cannot take a subtraction without such authority. You may not subtract any amount that is allocable to income excluded from your Arizona taxable income. If you have any questions concerning subtractions from income, call one of the numbers listed on page 1 of these instructions. Lines 20 through 24 - Net Capital Gain or (Loss) NOTE: For lines 20-24; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return.

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Arizona Form 140 13 If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140, lines 20-24. If you are not filing a small business income tax return, include all net capital gains or (losses) on Form 140, lines 20-24. NOTE: If you enter an amount on line 20, you must complete lines 21 and 22. If you are taking a subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, you must also complete line 23. If you do not complete lines 20 through 23, you cannot take the subtraction on line 24. You may subtract 25% (.25) of any 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. Complete the 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. NOTE: If you do not have any net capital gain or (loss) to report, enter zero, “0” on lines 20-22. Line 20 - Total Net Capital Gain or (Loss) If you reported a net capital gain or (loss) on your federal income tax return, enter the total net capital gain or (loss) reported on the Capital Gain or (Loss) line on your federal return. This amount should be included in your federal adjusted gross income. Line 21 - Total Net Short-Term Capital Gain or (Loss) Enter the total amount of net short-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. 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 21. Line 22 - Total Net Long-Term Capital Gain or (Loss) Enter the total amount of net long-term capital gain or (loss) reported on federal Schedule D. This amount should be included in your federal adjusted gross income. If your net long-term capital gain (loss) is limited to an amount reported on Form 1099-DIV and you were not required to complete federal Schedule D, enter the amount shown on Form 1099-DIV on line 22. Line 23 - Net Long-Term Capital Gain from Assets Acquired After December 31, 2011 NOTE: Only include net long-term capital gains on this line if it can be verified that the asset was acquired after December 31, 2011. If the date of acquisition cannot be determined, the asset is considered to have been acquired before January 1, 2012. 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. If you completed the worksheet at the end of these instructions, enter the amount from line 5 of the worksheet. If you did not complete the worksheet and you have no net long- term capital gain from assets acquired after December 31, 2011, enter zero, “0”. Line 24 - Net Long-Term Capital Gain Subtraction from Income for Assets Acquired After December 31, 2011. Multiply the amount on line 23 by 25% and enter the result. CAUTION: If you take a subtraction for the net capital gain derived from investment in a qualified business (on line 25) or the net capital gain from the exchange of one kind of legal tender for another kind of legal tender (on page 6, item “R”), that includes any long-term capital gain from an investment made after December 31, 2011, you cannot include that portion in your computation of the allowable subtraction on line 24 for any net long-term capital gain from assets acquired after December 31, 2011, and included in federal adjusted gross income. For more information, see the worksheet on page 31. 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 23. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 23. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 23. Line 25 - Net Capital Gain from Investment in an Arizona Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI 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 19

Arizona Form 140 14 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 25, enter the amount of the allowable subtraction. Line 26 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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 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 in taxable years beginning from and after December 31, 2012 through December 31, 2013, the amount of the subtraction for these assets 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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 10% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation is 55% (.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 allowable pursuant to IRC § 167(a) for the taxable year, calculated as if the bonus depreciation had been the full amount (100%) of federal bonus depreciation pursuant to IRC § 168(k). Add all of the amounts together and enter the total on line 26. Line 27 – Partnership Income Adjustment) If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Use this adjustment if you received an Arizona Form 165 Schedule K-1, line 3 that shows a difference between federal and state distributable income. If the difference reported on line 3 of your Arizona Form 165 Schedule K-1 is a negative number, enter that difference on line 27. Do not include a minus sign or use parentheses. NOTE: If the difference reported on line 3, of your Arizona Form 165 Schedule K-1, is a positive number, enter that difference as an addition on line 16. Line 28 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of interest income from U.S. Government obligations included as income on your federal return. U.S. Government obligations include obligations such as savings bonds and treasury bills. You cannot deduct any interest or other related expenses incurred to purchase or carry the obligations. If such expenses are included in your Arizona gross income, you must reduce the subtraction by such expenses. If you are itemizing deductions on your Arizona return, you must exclude such expenses from the amount deducted. NOTE: Do not subtract interest earned on Fannie Mae (FNMA) or Ginnie Mae (GNMA) bonds since this interest is taxable by Arizona. For details, see the department's ruling, ITR 06-1, Obligations of the United States Government, Federal Agencies, and United States Territories. Do not subtract any amount received from a qualified pension plan that invests in U.S. Government obligations. Do not subtract any amount received from an IRA that invests in U.S. Government obligations. These amounts are not interest income. For details, see the department’s rulings, ITR 96-2, Pension Plan Distributions Derived from Investment in U.S. Government Obligations; and ITR 96-3, Distributions Comprised of Income Earned by the IRA. Line 29a - Exclusion for U.S. Government, Arizona State or Local Government Pensions If you received pension income from any of the sources listed below, subtract the amount you received or $2,500, whichever is less. Include only the amount you reported as income on your federal return. If both you and your spouse receive such pension income, each spouse may subtract the amount received or $2,500, whichever is less. NOTE: Do not enter any subtraction for pension income received from retired or retainer pay of the Uniformed Services. The allowable subtraction for this pension type is entered on line 29b. Public pensions from the following sources qualify for this subtraction: x the United States Government Service Retirement and Disability Fund; 20

Arizona Form 140 15 x the United States Foreign Service Retirement and Disability System; x any other retirement system or plan established by federal law; NOTE: This applies only to those retirement plans authorized and enacted into the U.S. Code. This does not apply to a retirement plan that is only regulated by federal law (i.e., plans which must meet certain federal criteria to be qualified plans). x the Arizona State Retirement System; x the Arizona State Retirement Plan; x the Corrections Officer Retirement Plan; x the Public Safety Personnel Retirement System; x the Elected Officials' Retirement Plan; x a retirement plan established for employees of a county, city, or town in Arizona; and x an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district. NOTE: Public retirement pensions from states other than Arizona do not qualify for this subtraction. Line 29b – Exclusion for Retired or Retainer Pay of the Uniformed Services of the United States If you received benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States, you may subtract 100% of the amount you received. If you are married and filing a joint return and both you and your spouse each received such income, each spouse may subtract 100% of the amount received. If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. Line 30 - U.S. Social Security Benefits or Railroad Retirement Benefits Arizona does not tax the following: x Social security benefits received under Title II of the Social Security Act. x Railroad retirement benefits received from the Railroad Retirement Board 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. For more information, see the department’s ruling, ITR 16-1, Railroad Retirement Benefits, Railroad Disability Benefits, Railroad Unemployment Benefits and Railroad Sickness Payments. If you included such social security or railroad retirement benefits as income on your federal return, use line 30 to subtract this income. NOTE: Enter only the taxable amount (the amount that was subject to federal income tax). Do not include any amount that was not subject to federal income tax on line 30. Line 31 - Certain Wages of American Indians Enrolled members of American Indian tribes may subtract wages earned while living and working on their tribe's reservation. The federal government must recognize these tribes. For more information, see the department’s ruling, ITR 96-4, Income Taxation of Indians and Spouses. Line 32 - Pay Received for Active Service as a Member of the Reserves, National Guard or the U.S. Armed Forces Members of the U.S. armed forces may subtract pay received for active duty military service. Enter the amount of that income included in your federal adjusted gross income. Members of the reserves or the National Guard may subtract pay received for active service as a reservist or as a National Guard member. This includes pay received for weekend or two-week training periods. Enter the amount of that income included in your federal adjusted gross income. Military Technician (dual status) You may not subtract any income you received for full-time civil service employment as a “military technician (dual status).” Compensation received by a “military technician (dual status)” for federal civil service employment for the National Guard or for the United States Reserves, is not income received for active service as a National Guard member or a Reserve member even though the employee may be required to wear a military uniform while at work. For more information, see the department’s ruling, ITR 12-2, Compensation Received by a National Guard member or a member of the United States Reserves. NOTE: You may not subtract pay received for active duty service as a member of the U.S. Public Health Service or NOAA. For more information, see the department’s ruling, ITR 10-1, Does the subtraction, for armed forces personnel, under A.R.S. § 43-1022 apply to Arizona residents who are active duty service members of the commissioned corps of the United States Public Health Service or the National Oceanic and Atmospheric Administration? Line 33 - Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona did not adopt the special federal net operating loss rules for losses incurred during 2008 or 2009. For Arizona purposes, you must deduct a 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 2024 federal income tax return, if the election described in IRC § 172(b)(1)(H) had not been made in the year of the loss. Enter the amount that exceeds the actual 21

Arizona Form 140 16 net operating loss carry forward that was deducted in arriving at federal adjusted gross income. 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. Line 34 (Box 34a) - Contributions to 529 College Savings Plans You may subtract amounts you contributed directly to 529 college savings plans during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is limited to $2,000 per beneficiary ($4,000 if married). For example: Jorge and Kate are married and have two children. During 2024, Jorge and Kate contributed $5,000 to a 529 plan for Child 1 and $5,000 to a 529 plan for Child 2. Even though Jorge and Kate contributed a total of $10,000 during 2024, they may subtract only $8,000 on their 2024 joint tax return. You may take a subtraction for the following: x A contribution that you made during 2024 to a plan that existed before 2024. x A contribution that you made during 2024 to a plan established in another state. x A contribution that you made in 2024 to any 529 college savings plan. This could be a plan established for a child, grandchild, niece, nephew, or any other person for whom a plan has been established. You cannot take a subtraction for an amount transferred from one college savings plan to a different college savings plan (a rollover). Line 34 (Box 34b) - Contributions to 529A (ABLE Accounts) You may subtract amounts you contributed directly to a 529A, Achieving a Better Life Experience Account (ABLE), during the taxable year on behalf of the designated beneficiary to the extent that contributions were not deducted in computing federal adjusted gross income. You may subtract the amount you contributed during the year up to a total of $2,000 per beneficiary ($4,000 for a married couple filing a joint return.) If you are married filing separate returns, either you or your spouse may take the subtraction, or you may divide it between you, but the total subtraction taken by both of you cannot be more than $4,000 per beneficiary. If you contribute more than $2,000 per beneficiary ($4,000 if married) during the year, your total subtraction is still limited to $2,000 per beneficiary ($4,000 if married). See example under Line 34a. Line 34c Add the amounts in boxes 34a and 34b and enter the total on line 34c. Line 35 Subtract lines 24 through 34c from line 19. Enter the difference. Line 36 - Other Subtractions from Arizona Gross Income NOTE: If you are electing to report your small business income on Form 140-SBI and if any of the following “other subtractions” are directly related to the small business income, report that subtraction on Form 140-SBI. If the subtraction is not directly related to small business income, report the subtraction on Form 140. If you are not filing Form 140-SBI, take that subtraction on Form 140.

NOTE: If you are reporting adjustments on line 36, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If are not reporting adjustment on line 36, do not include page 6 with your return. Use line 36 if any of the following special circumstances apply. Do not include on line 36 any amounts already excluded in the computation of your federal adjusted gross income. A. Married Persons Filing Separate Returns If you file a separate Arizona return, you must report the following income on that return: x one-half of the community income from all sources, and x all of your separate income. If you and your spouse file a joint federal return but separate Arizona returns, you must make sure that each separate return reflects the correct income. If you begin your Arizona return with only the income that you earned during the year, you will have to adjust this income. If you file separate federal returns, each of your federal returns should already reflect the correct income. Since your separate Arizona returns will begin with the federal adjusted gross income, you will not have to adjust your income. If you adjust your income, keep a schedule for your records of how you figured your adjustment. For more information, see the department’s publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. B. Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment If you are making the small business election and this subtraction is directly related to small business income 22

81 PM 80 RCVD 88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. EXEMPTIONS FILING STATUS ADOR 10413 (24) AZ Form 140 (2024) Page 1 of 6

4 Married filing joint return 4a Injured Spouse Protection of Joint Overpayment

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

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

7 Single Ð Enter the number claimed. Do not put a check mark. Place any required federal and AZ schedules or other documents after Form 140. DO NOT STAPLE ANY ITEMS TO THE RETURN. Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Additions Subtractions 82F Check box 82F if filing under extension Arizona Form 140 Resident Personal Income Tax Return FOR CALENDAR YEAR 2024 OR FISCAL YEAR BEGINNING M M D D 2 0 2 4 AND ENDING M M D D 2 0 Y Y . 66F 8 Age 65 or over (you and/or spouse) 9 Blind (you and/or spouse) 10a Dependents: Under age of 17. 10b Dependents: Age 17 and over. 11a Qualifying parents and grandparents If completing lines 8, 9, and 11a, also complete lines 38, 39, and 41. For lines 10a and 10b, also complete line 49. Qualifying Parentsand Grandparents (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box and complete page 4, Part 1. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) 9 if you did not claim this person on your federal return due to educational credits 10c



10d



10e



(Box 11a): Qualifying parents and grandparents. See instructions. For more space, check the box and complete page 4, Part 2. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9IF AGE 65 OR OVER (f) 9 IF DIED IN 2024 11b

11c

12 Federal adjusted gross income (from your federal return) ................................................................................... 12 00 13 Small Business Income: 13S check the box if you are filing Arizona Form 140-SBI and enter the amount from Form 140-SBI, line 10.. 13 00 14 Modified federal adjusted gross income. Subtract line 13 from line 12...................................................................... 14 00 15 Non-Arizona municipal interest.................................................................................................................................... 15 00 16 Partnership Income adjustment. See instructions ......................................................................................................... 16 00 17 Total federal depreciation ............................................................................................................................................ 17 00 18 Other Additions to Income: Complete Other Additions to Arizona Gross Income schedule on page 5...................... 18 00 19 Subtotal: Add lines 14 through 18 and enter the total ....................................................................................................... 19 00 20 Total net capital gain or (loss). See instructions ..................................................................... 20 00 21 Total net short-term capital gain or (loss). See instructions .................................................... 21 00 22 Total net long-term capital gain or (loss). See instructions ...................................................... 22 00 23 Net long-term capital gain from assets acquired after December 31, 2011. See instructions . 23 00 24 Multiply line 23 by 25% (.25) and enter the result ....................................................................................................... 24 00 25 Net capital gain derived from investment in qualified small business.......................................................................... 25 00 26 Recalculated Arizona depreciation .............................................................................................................................. 26 00 27 Partnership Income adjustment. See instructions ......................................................................................................... 27 00 28 Interest on U.S. obligations such as U.S. savings bonds and treasury bills ................................................................ 28 00 29a Exclusion for federal, Arizona state or local government pensions (up to $2,500 per taxpayer) .................................29a 00 29bExclusion for benefits, annuities and pensions for retired/retainer pay of the uniformed services.............................. 29b 00 30 U.S. Social Security or Railroad Retirement Act benefits included as income on your federal return (taxable amount) 30 00 31 Certain wages of American Indians ............................................................................................................................. 31 00 32 Pay received for active service as a member of the reserves, national guard or the U.S. armed forces .................... 32 00 33 Net operating loss adjustment. See instructions............................................................................................................ 33 00 34 Contributions to: 34a 529 College Savings Plans 34b 529A (ABLE accounts) add 34a and 34b 34c 00 35 Subtract lines 24 through 34c from line 19. Enter the difference................................................................................ 35 00 00 00 23

ADOR 10413 (24) AZ Form 140 (2024) Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Exemptions Balance of Tax Refund or Amount Owed Total Payments and Refundable Credits Tax Due or Overpayment Voluntary Gifts Penalty 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 SIGNATURE DATE OCCUPATION

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 Ä Ä PLEASE SIGN HERE 36 Other Subtractions from Income. Complete Other Subtraction from Arizona Gross Income schedule on page 6........ 36 00 37 Subtract line 36 from line 35. Enter the difference ........................................................................................................ 37 00 38 Age 65 or over: Multiply the number in box 8 by $2,100 ....................................................................................................... 38 00 39 Blind: Multiply the number in box 9 by $1,500 ...................................................................................................................... 39 00 40 Other Exemptions. See instructions......40E Multiply the number in box 40E by $2,300............................................. 40 00 41 Qualifying parents and grandparents: Multiply the number in box 11a by $10,000........................................................................ 41 00 42 Arizona adjusted gross income: Subtract lines 38 through 41 from line 37. If less than zero, enter “0”................................ 42 00 43 Deductions: Check box and enter amount. See instructions ........................ 43I ITEMIZED...43S STANDARD 43 00 44 If you checked box 43S and claim charitable contributions, check 44C Complete page 3. See instructions................... 44 00 45 Arizona taxable income: Subtract lines 43 and 44 from line 42. If less than zero, enter “0”..................................................... 45 00 46 Tax: Multiply line 45 by 2.5% (.025). Enter the result............................................................................................................. 46 00 47 Tax from recapture of credits from Arizona Form 301, Part 2, line 30 ............................................................................ 47 00 48 Subtotal of tax: Add lines 46 and 47. Enter the total ........................................................................................................... 48 00 49 Dependent Tax Credit. See instructions ........................................................................................................................ 49 00 50 Family income tax credit (from the worksheet - see instructions) .......................................................................................... 50 00 51 Nonrefundable Credits from Arizona Form 301, Part 2, line 60 ...................................................................................... 51 00 52 Balance of tax: Subtract lines 49, 50 and 51 from line 48. If the sum of lines 49, 50 and 51 is greater than line 48, enter “0” ....... 52 00 53 2024 AZ income tax withheld.......................................................................................................................................... 53 00 54 2024 AZ estimated tax payments ..54a 00 Claim of Right 54b 00 Add 54a and 54b . 54c 00 55 2024 AZ extension payment (Form 204) ........................................................................................................................ 55 00 56 Increased Excise Tax Credit (from the worksheet - see instructions) .................................................................................... 56 00 57 Property Tax Credit from Arizona Form 140PTC ............................................................................................................ 57 00 58 Other refundable credits: Check the box(es) and enter the total amount......................581 308-I 582 334 583 349 58 00 59 Total payments and refundable credits: Add lines 53 through 58. Enter the total....................................................... 59 00 60 TAX DUE: If line 52 is larger than line 59, subtract line 59 from line 52. Enter amount of tax due. Skip lines 61, 62 and 63 ............ 60 00 61 OVERPAYMENT: If line 59 is larger than line 52, subtract line 52 from line 59. Enter amount of overpayment ............................ 61 00 62 Amount of line 61 to be applied to 2025 estimated tax................................................................................................... 62 00 63 Balance of overpayment: Subtract line 62 from line 61. Enter the difference ........................................................................ 63 00 64 - 74 Voluntary Gifts to: Solutions Teams Assigned to Schools ...........64 00 Arizona Wildlife ............... 65 00 Child Abuse Prevention ........... 66 00 Domestic Violence Services 67 00 Political Gift..................... 68 00 Neighbors Helping Neighbors.. 69 00 Special Olympics ................70 00 Veterans’ Donations Fund 71 00 I Didn’t Pay Enough Fund........ 72 00 Sustainable State Parks and Road Fund ...................73 00 Spay/Neuter of Animals .. 74 00 75 Political Party (if amount is entered on line 68 - check only one): 751 Democratic 752 Libertarian 753 Republican 76 Estimated payment penalty ............................................................................................................................................ 76 00 77 771 Annualized/Other 772 Farmer or Fisherman 773 Form 221 included 78 Add lines 64 through 74 and 76; enter the total.............................................................................................................. 78 00 79 REFUND: Subtract line 78 from line 63. If less than zero, enter amount owed on line 80 .......................................................... 79 00 98 C Checking or S Savings Direct Deposit of Refund: Check box 79A if your deposit will be ultimately placed in a foreign account; see instructions. 79A

ROUTING NUMBER ACCOUNT NUMBER 80 AMOUNT OWED: Add lines 60 and 78. Make check payable to Arizona Department of Revenue; write your SSN on payment; and include with your return ................................................................................................................................................. 80 00 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 140. 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. 24

ADOR 10413 (24) AZ Form 140 (2024) Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2024 Form 140 - 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 on their Arizona tax return may increase the standard deduction amount by 33% (.33) 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 1040 Schedule A (Gifts to Charity) that you would have claimed had you elected to take itemized deductions on your federal return. NOTE 1: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2024 through December 31, 2024 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on 5C. NOTE 2: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2024 Gifts by cash or check. ...................................................................................................... 1C 00 2C 2024 Other than by cash or check. ....................................................................................... 2C 00 3C Carryover from prior year. ......................................................................................................... 3C 00 4C Add lines 1C through 3C and enter the total. ................................................................... 4C 00 5C Total charitable contributions made in 2024 for which you are claiming a credit under Arizona law for the current (2024) or prior (2023) tax year. ............. 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0”. ............................................................................................................................................ 6C 00 7C Multiply line 6C by 33% (.33) and enter the result. ........................................................ 7C 00 • Enter the amount shown on line 7C on page 2, line 44. • Be sure to check box 43S for Standard Deduction on line 43. • Check box 44C for charitable contributions on line 44. If you do not check this box, you may be denied the increased standard deduction. 25

Your Name (as shown on page 1) Your Social Security Number 2024 Form 140 Dependent and Other Exemption Information Include page 4 with your return if: • You are listing additional dependents (for box 10a and 10b) from page 1. • You are listing additional qualifying parents and grandparents (for box 11a) from page 1. • You are claiming Other Exemptions on page 2, line 40. Part 1: Dependents (Box 10a and 10b) continued from page 1 Information used to compute your allowable Dependent Tax Credit on page 2, line 49. 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 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) 9IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10f



10g



10h



10i



10j



10k



10l



10m



10n



10o



10p



Part 2: Qualifying parents and grandparents (Box 11a) continued from page 1 Additional qualifying parents and grandparents information used to compute your allowable exemption on page 2, line 41. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9 IF AGE 65 OR OVER (f) 9 IF DIED IN 2024 11d

11e

11f

11g

11h

11i

Part 3: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 40. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) 9AGE 65 OR OVER (see instructions) C1 C2 (d) 9STILLBORN CHILD IN 2024 1



2



3



4



5



6



7



8



9



10



Enter the total number of individuals listed in Part 3 in box 40E on page 2, line 40. ADOR 10413 (24) AZ Form 140 (2024) Page 4 of 6 26

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (24) AZ Form 140 (2024) Page 5 of 6 2024 Form 140 - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6. Other Additions to Arizona Gross Income - Line 18 (see instructions for more information) A Married Persons Filing Separate Returns. .......................................................................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustment. .......................................................................... B 00 C Ordinary Income Portion of Lump-Sum Distributions Excluded on Your Federal Return. ............................ C 00 D Items Previously Deducted for Arizona Purposes. .......................................................................................... D 00 E Claim of Right Adjustment for Amounts Repaid in 2024. ................................................................................ E 00 F(a) Claim of Right Adjustment for Amounts Repaid in Prior Taxable years. ........................................................ F(a) 00 F(b) Adjustment for Net Operating Loss due to Claim of Right. ............................................................................. F(b) 00 G(a) Amount of Agricultural Water Conservation Expenses deducted under IRC for which a credit is claimed on Form 312. ........................................................................................................................................ G(a) 00 G(b) Addition to S Corporation income due to claiming Pass Through Credit for Agricultural Water Conservation System (Credit 312). See instructions. .................................................................................... G(b) 00 H(a) Adjusted basis computed under IRC for property for which a credit was claimed on Form 338 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions. ................................................................................................................................................. H(a) 00 H(b) Adjusted basis computed under IRC for Agricultural Pollution Control Equipment for which a credit was taken (Form 325) before taxable year 2024 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions. ................................................. H(b) 00 H(c) Adjusted basis computed under IRC for Pollution Control Equipment for which a credit was taken (Form 315) before taxable year 2024 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions. ....................................................................... H(c) 00 I Nonqualified Withdrawals from 529 College Savings Plans. .......................................................................... I 00 J Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for profit-basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in the federal adjusted gross income. ............................ J 00 K Federal Net Operating Loss (NOL) Carryforward from Non-Arizona Sources Accrued While a Nonresident. .... K 00 L Federal Capital Loss Carryforward Deduction Incurred from Non-Arizona Sources Prior to Arizona Residency. ............................................................................................................................................ L 00 M Americans with Disabilities Act - Access Expenditures. .................................................................................. M 00 N Amortization or Depreciation for Child Care Facility before 1990. ................................................................. N 00 O Net Capital Loss Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions. ................................................................................................................................... O 00 P Entity-level Income Tax Payment. See instructions. ....................................................................................... P 00 Q Motion Picture Productions Costs. See instructions. ...................................................................................... Q 00 R Other Adjustments Related to Tax Credits. See instructions. ........................................................................ R 00 S Other Adjustments. See instructions. .............................................................................................................. S 00 T Total Other Additions: Add all amounts and enter the total here and on page 1, line 18. ........................ T 00 27

Your Name (as shown on page 1) Your Social Security Number ADOR 10413 (24) AZ Form 140 (2024) Page 6 of 6 2024 Form 140 - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. Other Subtractions from Arizona Gross Income - Line 36 (see instructions for more information) A Married Persons Filing Separate Returns. .......................................................................................................... A 00 B Arizona Form 141AZ Schedule K-1 - Fiduciary Adjustent. .................................................................................. B 00 C Federally Taxable Arizona Municipal Interest as Evidenced by Bonds. ......................................................... C 00 D Adoption Expense. ............................................................................................................................................ D 00 E Qualified Wood Stove, Wood Fireplace or Gas-Fired Fireplace. ................................................................... E 00 F Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years. ........................................................ F 00 G Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits). ........................ G 00 H Qualified State Tuition Distributions. ................................................................................................................ H 00 I Installment Sale Income from Another State Taxed by the Other State In a Prior Taxable Year. ................. I 00 J Agricultural Crops Given to Arizona Charitable Organizations. ................................................................... J 00 K Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year. ............................ K 00 L Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business. ................... L 00 M Long-Term Care Insurance Premiums. ............................................................................................................ M 00 N Americans with Disabilities Act - Access Expenditures. .................................................................................. N 00 O Exploration Expenses Deferred before January 1, 1990. ............................................................................... O 00 P Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). ...................................................................... P 00 Q S Corporation shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your Form 120S Schedule K-1, line 7. ............................................................................................................ Q 00 R Net Capital Gain Derived From the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender: See instructions. ..................................................................................................................................... R 00 S Value of Virtual Currency and Non-Fungible Tokens Recieved at the Time of the Airdrop. See instructions. ................................................................................................................................................. S 00 T Gas Fees Not Included in Virtual Currency or Non-Fungible Token Basis. See instructions. ..................... T 00 U Arizona Families Tax Rebate. See instructions. ............................................................................................. U 00 V Other Adjustments .See instructions. ............................................................................................................... V 00 W Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 36. ................................................................................................................................................................ W 00 28

ADOR 10571 (24) PAGE 1 of 2 Include with your return. Your Name as shown on Form 140 Your Social Security Number Spouse’s Name as shown on Form 140 (if filing joint) Spouse’s Social Security Number Arizona Schedule A Itemized Deduction Adjustments For Full-Year Residents Filing Form 140 2024 To itemize on your Arizona return, you must first complete a federal Schedule A even if you did not itemize on your federal return. Use Form 140 Schedule A to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. See instructions for details. 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2 .................................................................................. 4 00 Adjustment to Interest Deduction 5 If 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 2024 that is equal to the amount of your 2024 federal credit .................................................................................................................................................. 5 00 Adjustments to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law ........................... 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 this line ............................. 7 00 Other Adjustments 8 Amount allowed as a federal itemized deduction that relates to income not subject to Arizona tax ............. 8 00 Adjusted Itemized Deductions 9 Add the amounts on lines 3 and 5 .......................................................................... 9 00 10 Add the amounts on lines 4, 6, 7, and 8 ................................................................. 10 00 11 Total federal itemized deductions allowed to be taken on federal return ................ 11 00 12 Enter the amount from line 9 above ....................................................................... 12 00 13 Add lines 11 and 12 ................................................................................................ 13 00 14 Enter the amount from line 10 above ..................................................................... 14 00 15 Arizona itemized deductions: Subtract line 14 from line 13. Enter the difference here. Also, enter the amount on Form 140, page 2, line 43. If less than zero, enter “0”................................................................. 15 00 You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions. IMPORTANT ! 29

ADOR 10571 (24)

AZ Schedule A (2024)

PAGE 2 of 2 Your Name (as shown on page 1) Your Social Security Number 2024 Form 140 Schedule A Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than as charitable contributions. If you claimed income taxes on your federal 1040 Schedule A, complete the following worksheet to determine the amount of your adjustment to enter on page 1, line 7. 1A Total state income 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 state income 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 30

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2024 or fiscal year beginning M M D D 2 0 2 4 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (24) 1 Tax liability for 2024. You may estimate this amount ...................................................................................... 1 00 2 Arizona income tax withheld during 2024 ...................................................................... 2 00 3 Arizona estimated tax payments for 2024 ..................................................................... 3 00 4 Credits you will claim on your 2024 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 X 7 00

• Make check payable to Arizona Department of Revenue; write your SSN, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. If you are a calendar year filer, your request for a 2024 filing extension must be postmarked on or before April 15, 2025. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six-month individual federal filing extension. 1 1 3 2 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2024 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date † Individual Calendar Year Filers: This is a request for an automatic 6-month filing extension .................................. October 15, 2025 † Individual Fiscal Year Filers: Enter taxable year end date and 6-month extended due date .............................. † A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. M M D D Y Y Y Y M M D D Y Y Y Y 94 Your Daytime Phone (with area code): Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. 95. Filing Status. Must be the same as Form 140, 140A, 140EZ, 140 PTC, 140ET, 140NR, 140PY 95a Married filing joint return 95c Head of Household 95b Married filing separate return 95d Single City, Town or Post Office State ZIP Code 31

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2024 Form 140 Schedule A Itemized Deduction Adjustments For Full-Year Residents Only Before you complete Arizona Form 140 Schedule A, you must complete a federal Form 1040 Schedule A even if you do not itemize deductions on your 2024 federal return. You may itemize your deductions on your Arizona return even if you do not itemize on your federal return. For the most part, you can deduct those items that are allowable itemized deductions under the Internal Revenue Code (IRC). Use Form 140 Schedule A, Itemized Deduction Adjustments, to adjust the amount shown on the federal Schedule A. Complete Form 140 Schedule A only if you are making changes to the amount shown on the federal Schedule A. You must include the federal Form 1040 Schedule A with this form. General Instructions Arizona is a community property state. If you are married filing a separate return and claiming itemized deductions, see the department’s 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 Form 140 Schedule A only if any of the following items apply to you: 1. You are deducting medical and dental expenses. 2. You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates. 3. Your deductions claimed on the federal Schedule A include expenses related to income not subject to Arizona tax. 4. You are claiming an Arizona credit for any amount allowed as a charitable contribution or a state income tax deduction. If any of those items (1 through 4) apply to you, complete federal Form 1040 Schedule A, and then complete Form 140 Schedule A as instructed. Do not complete Form 140 Schedule A if those items do not apply to you. If you do not have to complete Form 140 Schedule A, enter the amount from federal Form 1040 Schedule A on Arizona Form 140, page 2, line 43. 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. In most cases, the deduction allowed on the Arizona return will be larger than the deduction allowed on the federal return. On your Arizona return, you do not have to reduce your medical expenses by a percentage of your federal adjusted gross income. In most cases, you may deduct more medical expenses on your Arizona return than you can deduct on your federal return. Complete lines 1 through 4 to deduct those expenses that were not allowed on federal return due to limitations. 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 amounts in Box 1 of your Form W-2. x Insurance premiums you paid through the plan. x 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. For details about what types of expenses you may deduct, see federal Form 1040 Schedule A. 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 claimed this credit on your federal return (using federal Form 8396), you may deduct the amount of mortgage interest you paid in 2024 that is equal to the amount of that credit. Enter the amount of that interest on line 5. Line 6 - Adjustments to Charitable Contributions Skip line 6a if you are not claiming an Arizona tax credit for any amount allowed as a charitable contribution. 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.

33

Form 140 Schedule A Itemized Deduction Adjustments

2 For Example: If you claimed a credit on AZ Form: For:

You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A. 321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public Schools 323 Contributions to Private School Tuition Organization 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organizations - Individual 340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2023 return for a contribution that you made during 2024 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2024 return, because you claimed the credit on your 2023 return. If you are claiming a credit on your 2024 return for a contribution made during 2025 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2025 return, because you are claiming the credit on your 2024 return. Line 7 – Adjustment to State Income Taxes Arizona Revised Statutes § 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 as charitable contributions. Did you claim sales taxes rather than income taxes on your federal Schedule A? x If yes, stop. No adjustment is necessary. Go to line 8. x If no, complete the worksheet on page 2 of Form 140 Schedule A to determine the amount of your adjustment to enter on line 7. Line 8 - Other Adjustments You may not deduct any expense that relates to income not subject to Arizona tax. You must complete line 7 if your federal Schedule A includes such expenses. Such expenses include: 1. Interest or other related expenses incurred to purchase

or carry U.S. obligations, when the income is not

subject to Arizona tax. 2. State taxes paid to other states for prior years if you

were not an Arizona resident for that prior year. 3. Employee business expenses that relate to income not

subject to Arizona tax. This list is not complete. There may be other items included in your federal Schedule A that you cannot deduct on the Arizona return. Enter the amount of expenses deductible on federal Schedule A that are allocable to income that is not subject to Arizona income tax. Lines 9 through 14 - Adjusted Itemized Deductions Complete lines 9 through 14 as instructed on the form. Line 15 – Arizona Itemized Deductions Subtract line 14 from line 13 and enter the difference. If less than zero, enter “0”. Also, enter the amount on Form 140, page 2, line 43. NOTE: The amount entered on line 15 cannot be a negative number. Entering a negative number on Form 140, line 43 may delay the processing of your return. 34

Arizona Form 2024 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. 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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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. Completing Form 204 x Enter your name and SSN on the first line 1. x If filing a joint return with your spouse, enter your spouse’s name and SSN on the second line 1. x Enter your current address on lines 2 and 3. x Box 95: Select the filing status that you will use on Form 140, 140A, 140EZ, 140PTC, 140ET, 140NR or 140PY. x Box 94: enter your daytime phone (with area code). x Check which form this filing extension request if filed for. x Complete the rest of form following the directions on the form. 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). 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 weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. Calendar year filers have until April 15, 2025 to file the request for an extension. This will allow you to file your return by October 15, 2025. Complete Form 204 to request an automatic 6-month extension. Write 2024 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, 2025 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 35

Arizona Form 204 2

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, 2025 even though your federal return is due on June 16, 2025. If you want to file your 2024 Arizona return after April 15, 2025 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, 2025. 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, 2025 even though your federal return will not be due until December 15, 2025. If you file your 2024 Arizona calendar year return after October 15, 2025 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 2024 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 2024. 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. 36

Arizona Form 140 17 reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A fiduciary uses Form 141AZ Schedule K-1 to report to you your share of the fiduciary adjustment from the estate or trust. Line 3 of Form 141AZ Schedule K-1 shows your share of the fiduciary adjustment from the estate or trust. If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a negative number, include that amount as an Other Subtraction on line 36. NOTE: If the amount reported on line 3 of your Arizona Form 141AZ Schedule K-1 is a positive number, enter that amount as an Other Addition on line 18. C. Federally Taxable Arizona Municipal Interest as Evidenced by Bonds Include the amount of any interest income received on obligations of the State of Arizona, or any political subdivisions of Arizona, as evidenced by bonds, that is included in your Arizona gross income. Do not enter any Arizona municipal interest that is exempt from federal taxation and not included in your federal adjusted gross income. For more information, see the department’s ruling, ITR 15-1, Arizona Municipal Interest that is Included in Federal Adjusted Gross Income. D. Adoption Expenses You may take this subtraction only in the year the final adoption order is granted. Include the lesser of the total of the following adoption expenses or $ 40,000. When figuring your subtraction, you may include expenses incurred in prior years. The following expenses are qualified adoption expenses: x unreimbursed medical and hospital costs; x adoption counseling; x legal and agency fees; and x other nonrecurring costs of adoption. If you are married and filing separately, you may take the entire subtraction or you may divide the subtraction with your spouse. However, the total subtraction taken by both you and your spouse cannot exceed $ 40,000. E. Qualified Wood Stove, Wood Fireplace, or Gas-Fired Fireplace You may take a subtraction for converting an existing fireplace to one of the following: x a qualified wood stove; x a qualified wood fireplace; or x 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 a residential 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. F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2024, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140-SBI return, the adjustment should be made in the 140-SBI return. All other claim of right adjustments should be made on the regular 140 return. You must make an entry here if all of the following apply: x During a year prior to 2024 you were required to repay amounts held under a claim of right. x You computed your tax for that prior year under Arizona's claim of right provisions. x A net operating loss or capital loss was established due to the repayment made in the prior year. x You are entitled to take that net operating loss or capital loss carryover into account when computing your 2024 Arizona taxable income. x The amount of the loss carryover allowed to be taken into account for Arizona purposes is more than the amount included in your federal 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 federal adjusted gross income. G. Certain Expenses Not Allowed for Federal Purposes (due to claiming federal tax credits) If you are making the small business election, do not take the subtraction here, take it on the 140-SBI tax return. 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: x the Federal Work Opportunity Credit; x the Empowerment Zone Employment Credit; x the credit for employer-paid social security taxes on employee cash tips; and x the Indian Employment Credit. If you received any of the above federal tax credits for 2024, include the portion of wages or salaries you paid or incurred during the taxable year equal to the amount of those federal tax credits you received. H. Qualified State Tuition Program Distributions If you are a beneficiary of a qualified state tuition program, you may subtract some of the amount distributed from the program for qualified education expenses. Include the amount of the distribution that you had to include in your federal adjusted gross income. A qualified state tuition program is a program that meets the requirements of IRC § 529.

37

Arizona Form 140 18 I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. You may subtract income from an installment sale if both of the following apply: x The income from the sale is subject to Arizona income tax in 2024. x You paid income tax to another state on that income in a prior tax year. Include the amount of such income that you included in your Arizona gross income for 2024. Do not include any amount that is subject to tax by both Arizona and another state in 2024. In this case, you may be eligible for a tax credit. See Arizona Form 309 for details. J. Agricultural Crops Given to Arizona de Organizations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Arizona law allows a subtraction for qualified crop gifts made during 2024 to one or more charitable organizations. To take this subtraction, all of the following must apply: x You must be engaged in the business of farming or processing agricultural crops. x The crop must be grown in Arizona. x You made your gift to a charitable organization located in Arizona that is exempt from Arizona income tax. The subtraction is the larger of the wholesale market price or the most recent sale price for the contributed crop. The amount of the 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. K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. For property 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 for 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.) L. Sole Proprietorship Income of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. M. Long-Term Care Insurance Premiums You may subtract the amount of premium costs for long-term care insurance for qualified long-term care services. Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services. You may take this subtraction only if you are not claiming itemized deductions for the taxable year. An individual who claims itemized deductions may not take this subtraction. N. Americans with Disabilities Act - Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A subtraction is allowed for eligible business access expenditures paid or incurred during the taxable year 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 do any of the following: x Remove any barriers that prevent a business from being accessible to or usable by individuals with disabilities. x Provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals. 38

Arizona Form 140 19 x Provide qualified readers, taped texts, and other effective methods of making visually delivered materials available to individuals with visual impairments. x Acquire or modify equipment or devices for individuals with disabilities. x 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 A.R.S. 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. O. Exploration Expenses Deferred before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Call one of the numbers 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. P. Sole Proprietorship – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. A sole proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “L”, cannot take this allowable subtraction. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. Q. S Corporation Shareholders - Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not report the subtraction on Form 140, enter the subtraction on Form 140-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your Form 120S Schedule K-1, line 7.

R. Net Capital Gain from Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To take this subtraction you must net all gains and (losses) from all exchanges of kind of legal tender for another kind of legal tender including amounts shown on Forms 165 Schedule K-1, 120S Schedule K-1, and/or 141AZ, Schedule K-1. Enter the amount of any net capital gain 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 page 5, “Other Additions to Arizona Gross Income, “O”. For the purposes of this subtraction: (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. S. Virtual Currency and Non-Fungible Tokens If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: x Airdrop as the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. x Non-fungible tokens (NFT) as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset. x Virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency. x Foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance. 39

Arizona Form 140 20 T. Gas Fees or Non-Fungible Token Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: x Gas Fees as a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or an NFT. U. Arizona Families Tax Rebate Enter the total amount of your 2024 Arizona Families Tax Rebate received during tax year 2024 that is required to be included in your Arizona Gross Income under the internal revenue code. V. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. 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. W. Total Other Subtractions from Arizona Gross Income Add all amounts from page 6, and enter the total on line 36. Line 37 Subtract line 36 from line 35 and enter the difference. Exemptions - Lines 38 through 41 Line 38 - Age 65 or Over Multiply the number in box 8 on the front of your return by $2,100 and enter the result. Line 39 - Blind Multiply the number in box 9 on the front of your return by $1,500 and enter the result. Line 40 - Other Exemptions NOTE: If you take an “Other Exemption” for an individual on line 40, you cannot take an exemption for this individual as a qualifying parent/grandparent on line 41; or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. You must complete page 4, Part 3 to compute your allowable Other Exemptions on line 40. Be sure to enter the number of individuals listed in Part 3 in the box, 40E, on line 40. You may take an exemption in the amount of $2,300 for each of the following individuals: x A person who is age 65 or over (related to you or not) if either of the following applies: 1. In 2024, 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. 2. In 2024, 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, 2025 (born 1/1/1960), that person would be considered to be age 65 at the end of 202 for federal income tax purposes and likewise for Arizona income tax purposes. x A stillborn child if the following apply: 1. The stillbirth occurred during 2024. 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 SSN. 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: x 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. x 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 exemption for a stillborn child. Enter the total number of exemptions in box 40E on line 40. You may lose the exemption if you do not furnish this information. Multiply the number in box 40E by $2,300 and enter the result. Line 41 - Qualifying Parents and Grandparents NOTE: If you take an exemption for an individual as a qualifying parent/grandparent on line 41 you cannot take an “Other Exemption” for the same individual on line 40, or claim this individual for the dependent tax credit on line 49. In this case, do not include this individual as a dependent in Box 10b. 40

Arizona Form 140 21 Multiply the number in box 11a on the front of your return by $10,000 and enter the result. Line 42 - Arizona Adjusted Gross Income Subtract lines 38 through 41 from line 37. If less than zero, enter “0”. Figuring Your Tax Line 43 - Itemized Deductions or Standardized 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 Deductions If you itemize your deductions, check box 43I. You may itemize deductions on your Arizona return even if you take a standard deduction on your federal return. For the most part, you may claim those deductions allowable as itemized deductions under the IRC. In some cases, the amount allowed for some deductions may not be the same as the amount allowable for federal purposes. You may have to adjust the amounts shown on your completed federal Form 1040 Schedule A. See Arizona Form 140 Schedule A, Itemized Deduction Adjustments, to figure if you have to make any adjustments. To figure your itemized deductions, you must complete a federal Form 1040 Schedule A. Then, if required, complete Arizona Form 140, Schedule A, Itemized Deduction Adjustments. If you do not have to complete Form 140 Schedule A, Itemized Deduction Adjustments; enter the amount from federal Form 1040 Schedule A, on Form 140, line 43. You must include a copy of the completed federal Schedule A with your tax return. Your Standard Deduction If you take the standard deduction, check box 43S. If your filing status is: Your standard deduction is: x Single $ 14,600 x Married filing joint $ 29,200 x Married filing separate $ 14,600 x Head of Household $ 21,900 NOTE: A surviving spouse shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse. If you and your deceased spouse would have filed a joint tax return for tax year 2024, enter $29,2000 on line 43. If you and deceased spouse would have filed separate tax returns for tax year 2024, enter $14,600 on line 43. Line 44 - Increased Standard Deduction for Charitable Contributions A taxpayer may increase the allowable standard deduction amount equal to 33% (.33) of the total amount of a taxpayer’s charitable contributions that would have been allowed if the taxpayer elected to claim itemized deductions. To claim the increased standard deduction, you must complete Form 140, page 3, and include the completed page with your tax return, when filed. Be sure to check box 44C on line 44. 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 45 - Arizona Taxable Income Subtract lines 43 and 44 from line 42 and enter the difference. If less than zero, enter “0”. Line 46 - Tax Amount Multiply line 45 by 2.5% (.025) and enter the result. Line 47 - Tax from Recapture of Credits from Arizona Form 301 Enter the amount of tax due from recapture of the credits from Arizona Form 301, Part 2, line 31. Line 48 - Subtotal of Tax Add lines 46 and 47 and enter the total. Line 49 - Dependent Tax Credit NOTE: If you claim an individual for the dependent tax credit on line 49 you cannot take an exemption for the same individual as a qualifying parent/grandparent on line 41 or as an “Other Exemption” on line 40. 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: x $100 for each qualifying dependent who is under 17 years of age at the end of the taxable year. x $25 for each qualifying dependent who is at least 17 years of at age at the end of the taxable year. The allowable credit is reduced for single, head of household, and married taxpayers filing separate returns whose federal adjusted gross income (page 1, line 12) is more than $200,000; and for married taxpayers filing a joint return whose federal adjusted gross income is more than $400,000. 41

Arizona Form 140 22 Complete the following tables to compute your allowable Dependent Tax Credit. Table I (a) (b)

(c) Credit amount (d) Multiply 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 All taxpayers go to Table II. Table II If your filing status is single, married filing separate, or head of household; is your federal adjusted gross income on page 1, line 12, more than $200,000?

Yes No If your filing status is married filing joint, is your federal adjusted gross income on page 1, line 12, more than $400,000? Yes No x 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 3 on page 2, line 49. x 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 2024 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 12……………… $ .00 2. Federal adjusted gross income limit…… $ 200,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3, 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 result on page 2, line 49…………………………………... $ .00

Table IV 2024 Adjusted Dependent Tax Credit For filing status: married filing joint 1. Enter your federal adjusted gross income from page 1, line 12…………… $ .00 2. Federal adjusted gross income limit….... $ 400,000.00 3. Subtract line 2 from line 1. Enter the difference………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 4. Enter amount from Table I, line 3 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 result on page 2, line 49………………………………….. $ .00

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 50 - Family Income Tax Credit E-file software will let you know if you are eligible and will figure the credit for you. NOTE: The family income tax credit will only reduce your tax and cannot be refunded. You may claim this credit if your income does not exceed the maximum income allowed for your filing status. x Complete Steps 1, 2, and 3 to see if you qualify for this credit. x If you qualify to claim this credit, complete Worksheet II in Step 4. 42

Arizona Form 140 23 Step 1 Worksheet I 1. Enter the amount from Form 140, line 42… $ 2. Enter the amount from Form 140, line 38. $

3. Enter the amount from Form 140, line 39. $ 4. Enter the amount from Form 140, line 40. $ 5. Enter the amount from Form 140, line 41. $ 6. Add the amounts on lines 2 through 5. $ 7. If you elected to report your small business income on Form 140-SBI, enter the amount from Form 140, line 13…………. $ 8. Add lines 1, 6 and 7…………………......... $ Step 2 Look at the following tables. Find your filing status. x Use Table I if married filing a joint return. x Use Table II if head of household. x Use Table III if single or married filing separate return. Step 3 x Look at column (a) and find the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. x Find the maximum income [in column (b)] for the number of dependents you are claiming. x Compare that income [the amount in column (b)] with the income listed in Step 1 on Worksheet I, line 8. If the amount entered in Step 1 on Worksheet I, line 8, is equal to or less than the maximum income allowed for the number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, you qualify to claim this credit. To figure your credit, complete Step 4. Table I Married Filing Joint Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income x 0 or 1 $20,000 x 2 $23,600 x 3 $27,300 x 4 or more $31,000

Table II Head of Household Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income x 0 or 1 $20,000 x 2 $20,135 x 3 $23,800 x 4 $25,200 x 5 or more $26,575 Table III Single or Married Filing Separate Return Column (a) Column (b) Number of dependents you are claiming on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Maximum Income x 0 or more $10,000 Step 4 If you qualify to claim the credit, complete Worksheet II. Worksheet II Complete Steps 1 through 3 before you complete Worksheet II 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes.

2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here.

3. Add lines 1 and 2. Enter the total.

4. Multiply the amount on line 3 by $40. Enter the result. $ 5. If you checked filing status 4 or 5, enter $240 here. If your checked filing status 6 or 7, enter $120 here. $ 6. Enter the lesser of line 4 or line 5. Also, enter this amount on Form 140, line 50. $ Line 51 - Nonrefundable Credits - Arizona Form 301 NOTE: If you elect to report small business income on Form 140-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the credit form(s) and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140 for taxes paid to other states or country on income not reported on Form 140-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or country. See Form 309-SBI and instructions for more information. 43

Arizona Form 140 24 Complete line 51 if you claim any of the following credits on Form 140. Also make sure that you complete and include Form 301 and the appropriate credit form or forms with your return. 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 140, line 51. 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 your credit. Credit for Solar Energy Devices You may qualify for this credit if you installed a solar energy device in your residence located in Arizona. Use Form 310 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 This credit was repealed for individual taxpayers for tax years beginning from and after December 31, 2021. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 315 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. Credit for Contributions Made or Fees Paid to Public Schools You may qualify for this credit if you made contributions or 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 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 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 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 a qualified energy resource. Use Form 343 to figure this credit. Credit for New Employment 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 AZ Form 323) You may qualify for this credit if you made contributions to school tuition organization(s) that exceed the allowable credit amount on Arizona Form 323. Use Form 348 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. 44

Arizona Form 140 25 Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit(s) on the appropriate form(s). Complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 62, on Form 140, line 51. The total amount of credits on line 51 cannot reduce your tax below zero. These credits are nonrefundable credits. Include Form 301 and completed tax credit forms, along with any supporting documents, with your return. Line 52 - Balance of Tax Subtract lines 49, 50, and 51 from line 48. Enter the difference. If the sum of lines 49, 50, and 51 is greater than line 48, enter “0”. Totaling Payments and Refundable Credits Line 53 - 2024 Arizona Income Tax Withheld Enter the Arizona income tax withheld shown on Form(s) W-2 from your employer(s). Also enter the Arizona income tax withheld shown on your Form(s) 1099-R (distributions from pensions, annuities, etc.). Do not include any income tax withheld for another state. Include Form(s) W-2 and/or 1099-R after the last page of your return only if the form shows Arizona income tax withholding. NOTE: You should receive your Form(s) W-2 no later than January 31. If you did not receive a Form W-2 or you think your Form W-2 is wrong, contact your employer. Line 54 (Boxes a, b, and line 54c) - 2024 Arizona Estimated Tax Payments Including Amount Applied from Your 2023 Return and Arizona Claim of Right Use this line if you did any of the following; x made 2024 estimated income tax payments to Arizona; or x applied any of your refund from your 2023 Arizona tax return to 2024 estimated taxes for Arizona; or 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 at www.azdor.gov. Box 54a: Enter the total amount of estimated taxes paid and/or applied to your 2024 taxes. NOTE: If you are married and made joint Arizona estimated tax payments for 2024, but are filing separate 2024 Arizona income tax returns, see the department’s ruling, ITR 02-3, Allocating Joint Estimated Payments to Separate Returns. Box 54b: If you completed an Arizona Claim of Right- Individual tax form, enter the amount from 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 54b.

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 54c: Add the amounts in box 54a and box 54b. Enter the total on line 54c. Line 55 - 2024 Arizona Extension Payment (Form 204) Use this line to report the payment you sent with your 2024 extension request (Arizona Form 204) or the electronic extension payment you made using www.AZTaxes.gov. Line 56 - Increased Excise Tax Credit You may claim this credit if you meet all of the following: x You must have an SSN that is valid for employment. x You meet the income threshold for your filing status. x If you are married filing a joint return, or a head of household, you may claim this credit if the amount on Form 140, page 1, line 12 is $25,000 or less. x If you are single or married filing a separate return, you may claim this credit if the amount on Form 140, page 1, line 12 is $12,500 or less. x You are not claimed as a dependent by any other taxpayer. x You were not sentenced for at least 60 days of 2024 to a county, state, or federal prison. NOTE: If you are filing a joint return with your spouse and your spouse was sentenced for at least 60 days during 2024 to a county, state or federal prison, you may claim the Excise Tax Credit if you otherwise qualify to claim the credit, but you cannot claim the credit for your spouse. If your spouse has a valid SSN, but you do not, neither of you can claim this credit. For more information on how incarceration affects this credit, see the department’s publication, Pub. 709, Excise Tax Credit - How Does Incarceration Affect Eligibility? If you are filing a joint return with your spouse, you may also claim this credit for your spouse if your spouse has either a valid SSN or an ITIN. If you also claim a credit for qualifying children, your qualifying children must have either a valid SSN or an ITIN. To figure your credit, complete the following worksheet. Do not complete the following worksheet if you are claiming the property tax credit on Arizona Form 140PTC. Use Form 140PTC to figure both the credit for increased excise taxes and the property tax credit. If you are claiming both the credit for increased excise taxes and the property tax credit, enter the increased excise tax credit from Form 140PTC, page 1, line 17, on line 56; and enter the property tax credit from Form 140PTC, page 1, line 15 on line 57.

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Arizona Form 140 26 Credit for Increased Excise Taxes Worksheet If you checked filing status 4 or 5, is the amount on Form 140, line 12 $25,000 or less? If you checked filing status 6 or 7, is the amount on Form 140, line 12 $12,500 or less? Check One Yes No If you checked no, STOP. You do not qualify for this credit. If you checked yes, complete the worksheet. Worksheet continues on the next column. 1. Enter the number of dependents you entered on Form 140, page 1, boxes 10a and 10b, and claiming as a qualified parent/grandparent in box 11a, provided that person(s) qualifies as a dependent for federal purposes. Exclude any dependent that is not an Arizona resident. 2. If you checked filing status 4, enter the number 2 here. If you checked filing status 5, 6, or 7, enter the number 1 here. 3. Add lines 1 and 2. Enter the total. 4. Multiply the amount on line 3 by $25. Enter the result. $ 5. Maximum credit. $100.00 6. Enter the smaller of line 4 or line 5 here and also enter on Form 140, line 56. $ NOTE: The credit cannot exceed $100 per household. Do not claim this credit if someone else in your household has already claimed $100 of the credit. If someone else in your household has claimed less than $100, you may claim the credit as long as all credit claims filed from your household do not exceed $100. For more information, see the department’s publication, Pub. 709. Line 57 - Property Tax Credit You may claim the property tax credit if you meet all of the following: x You were either 65 or older in 2024 or, if under age 65, you were receiving SSI Title 16 income from the Social Security Administration. NOTE: Supplemental Security Income (SSI) Title 16 income is not the normal Social Security disability. x You were an Arizona resident for the full year in 2024. x You paid property tax on your Arizona home in 2024. You paid rent on taxable property for the entire year or you did a combination of both. x If you lived alone, your total household income was under $3,751. If you lived with others, the total household income was under $5,501. To see what income is included in household income, see the Form 140PTC instructions. Complete Form 140PTC to figure your credit. Enter the amount from Form 140PTC, page 1, line 15. Include Form 140PTC with your return. TAX TIP: To claim a property tax credit, you must file your claim or extension request by April 15, 2025. You cannot claim this credit on an amended return if you file the amended return after the due date of your return. afte Line 58 - Other Refundable Credits Enter the total amount of refundable credits you are claiming from any of the following: x Credit for Increased Research Activities - Individuals (Form 308-I) x Credit for Motion Picture Production Costs (Form 334) x 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 7, line 38. Credit for Motion Picture Production Costs (Form 334) You may qualify for the refundable credit for the motion picture production costs if the credit exceeds your taxable income. Pre-approval and post-approval are required through the ACA to qualify for this credit. For more information about this credit and to determine whether you may claim a refund of this credit, see Arizona Form 334. If you are claiming a refund from Form 334, enter the amount from Form 334, Part 1, line 6. 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 58. You may use the table to figure the amount to enter on line 58. 46

Arizona Form 140 27 2024 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

2. Enter the refundable amount from Form 334, Part 1, line 6.

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

4. Add the amounts on lines 1, 2 and 3 Enter the total here and on line 58.

Line 59 - Total Payments and Refundable Credits Add lines 53 through 58 and enter the total. Figuring Your Tax Due or Overpayment Line 60 - Tax Due If line 52 is larger than line 59, subtract line 59 from line 52 and enter the amount of tax due. Skip lines 61, 62, and 63. Line 61 - Overpayment If line 59 is larger than line 52, subtract line 52 from line 59 and enter the difference. Complete lines 62 and 63. Line 62 - Amount of Line 61 to be Applied to 2025 Estimated Tax If you want all or part of your overpayment applied to next year's estimated taxes, enter that amount on line 62. NOTE: If you apply any of the amount shown on line 61 to 2025, you cannot use that amount to pay any tax that is later found to be due for 2024. You also may not claim a refund for that amount until you file your 2025 return. Line 63 - Balance of Overpayment Subtract line 62 from line 61 to determine your overpayment balance before voluntary gifts and any estimated payment penalty. Making Voluntary Gifts You can make voluntary gifts to each of the following funds. 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 64 - 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 80. Enter the amount you want to donate on line 64. 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 65 - 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 80. Enter the amount you want to donate on line 65. 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 66 - 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 80. Enter the amount you want to donate on line 66. Gifts go to the Arizona Child Abuse Prevention Fund. This fund provides financial aid to community agencies for child abuse prevention programs. Line 67 - 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 80. Enter the amount you want to donate on line 67. Gifts go to the Domestic Violence Services Fund. This fund provides financial aid to shelters for victims of domestic violence. Line 68 - 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 80. Enter the amount you want to donate on line 68. If you donate to a political party, complete line 75. Gifts go to one of the following political parties: x Democratic x Libertarian x Republican Line 69 - 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 80. Enter the amount you want to donate on line 69. 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 70 - 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 80. Enter the amount you want to donate on line 70. Gifts go to the Special Olympics Fund. This fund helps provide programs of the Arizona Special Olympics.

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Arizona Form 140 28 Line 71 - 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 80. Enter the amount you want to donate on line 71. Gifts go to the Veterans’ Donations Fund, which may be used for veterans in Arizona. Line 72 - 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 80. Enter the amount you want to donate on line 72. Gifts that you make to the I Didn’t Pay Enough Fund will aid the state by going to the Arizona general fund. Line 73 - 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 80. Enter the amount you want to donate on line 73. 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 74 – 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 80. Enter the amount you want to donate on line 74. 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. Line 75 - Political Party If you entered an amount on line 68, 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 68. Line 76 - Estimated Payment Penalty NOTE: Do not complete Arizona Form 221, Underpayment of Estimated Tax by Individuals, if the amount on Form 140, line 53 is more than the amount on Form 140, line 52. 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 2024 if the following apply: x You are a calendar year filer. You file your Arizona return by March 1, 2025. You pay in full the amount stated on your return as owed. x 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 772 on line 77 and do not complete Form 221. Line 77 - Box 771 through 773 Box 771: 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 772: check if you are an individual who for federal purposes reports as a farmer or fisherman. Box 773: check if you completed and are including Form 221. Line 78 Add lines 64 through 74 and 76. Enter the total. Figuring Your Refund or Amount Owed You can get your refund quicker when you e-file and use direct deposit. Line 79 - Refund Subtract line 78 from line 63. Enter your refund on line 79 and skip line 80. If less than zero “0” enter amount owed on line 80. 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 that 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. Complete Form 822. This form is available at: azdor.gov/forms. Select “Forms” on the home page and click on “See All Forms” then type 822 in the Search box.

You must have made Arizona estimated income tax payments during 2024 if: Your filing status is: AND Your Arizona gross income for 2023 was greater than: AND Your Arizona gross income for 2024 was greater than: x Single $75,000 $75,000 x Married filing joint $150,000 $150,000 x Married filing separate $75,000 $75,000 x Head of Household $75,000 $75,000 48

Arizona Form 140 29 Direct Deposit of Refund Complete the direct deposit line if you want us to directly deposit the amount shown on line 79 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 79A if the direct deposit will ultimately be placed in a foreign account. If you check box 79A, 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? x You will get your refund fast - even faster if you e-file! x Payment is more secure - there is no check to get lost. x It is more convenient - no trip to the bank to deposit your check. x 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. 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. If the direct deposit is rejected, a check will be mailed instead. Line 80 - Amount Owed Add lines 60 and 78. Enter the amount you owe on line 80. If you are making voluntary gifts on lines 64 through 74 in excess of your overpayment, enter the difference on line 80. You may pay the amount owed only with a check or money order, electronic check, direct debit through your software vendor 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, Form 140 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 2024. 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 non-sufficient funds (NSF) fee if you provide an incorrect routing number or an incorrect account number. Check with your financial institution to get the correct account and routing 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. 49

Arizona Form 140 30 Installment payments If you cannot pay the full amount shown on line 80 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. If you cannot pay the full amount shown on line 80, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2025. 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 140 is not considered a valid return unless you sign it. The department cannot mail a refund check without proper signatures on the return. Instructions Before Mailing x Do not staple your return. Do not staple any documents, schedules, or payment to your return. x Make sure your NAME and SSN are on the return. x Be sure you enter your daytime telephone number in the space provided on the front of your return. x Check to make sure that your math is correct. A math error can cause delays in processing your return. x Make sure you filled in all required boxes. x If you requested a filing extension, make sure that you check box 82F (above your name) on page 1 of the return. x Sign your return and have your spouse sign, if filing jointly. x Write your SSN and tax year on the front of your check or money order. Include your payment with your return. x Do not include correspondence with your return. Mailing Your Return Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140 in the same envelope. x If you are mailing your return, be sure to include Form 140, page 1 and page 2, and all other required forms. x Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. x If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. x If mailing more than one tax year return, please use a separate envelope for each return. Where Should I Mail my return? If you are not filing Form 140-SBI and are including a payment with your Form 140 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 If you are filing Form 140 and Form 140-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. x After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 x After applying the overpayment, if there is a net refund mail both returns 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, 2025. 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 50

Arizona Form 140 31 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 received by the department within five business days of the private meter postmark date, the department will consider the 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 under report the income shown on that return by more than 25% (.25). The department can bring an action at any time if a return is false or fraudulent, or if you do not file a return. To find out more about what records you should keep, get 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 2024 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.

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Arizona Form 140 32

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

2024 Original return 2024 Amended return

1. Enter the total net long-term capital gain or (loss) from assets acquired after December 31, 2011 and included in federal adjusted gross income………………………………………………. 00 2. Enter the amount of net long-term capital (loss) derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Additions to Arizona Gross Income”, on Form 140, page 5, item “O” ……………………………………………………………………………… 00

3. Enter the amount of net long-term capital gain derived from investment in qualified small business from assets acquired after December 31, 2011 and included in the subtraction on Arizona Form 140, line 25……………………………………………………………………………………. 00

4. Enter the amount of net long-term capital gain derived from the exchange of one kind of legal tender for another kind of legal tender from assets acquired after December 31, 2011, and included on the schedule, “Other Subtractions from Arizona Gross Income”, on Form 140, page 6, item “R”..…………………………………………………………… 00 5. (Line 1 + line 2) minus (line 3 + line 4). Enter the difference…………………………………........

00 x If the amount on line 5 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140, line 23. x If the amount on line 5 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140, line 23.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. x 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. x An asset acquired by gift or inheritance is considered acquired on the date it was acquired by gift-giver or the deceased individual. x 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 your computation. Do not include any short-term capital gains or (losses) in this worksheet. 52

Arizona Form 140 33 2024 Form 140 Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I, 334, 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Form 140PTC (if claiming a Property Tax Credit) Only include those forms showing Arizona income tax withholding. Form 131 (if claiming a refund on behalf of a deceased taxpayer) AZ Schedule DFE (if reporting subtraction on Form 140, page 6) Form 140 – pages 5 and/or 6 (if completed) Form 140 – page 3 and 4 (if completed) Form 140 – pages 1 and 2 Form 301-SBI and all credit forms reported on Form 301-SBI Form 131-SBI (if claiming a refund on behalf of a deceased taxpayer) Form 140-SBI (if filing) Form 203 (if filing) 53

DO YOU QUALIFY FOR AN ARIZONA TAXCREDIT? 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 Up to $100 per household your federal adjusted gross income was $ 25,000 or less ($12,500 ifsingle) you were not sentenced for at least 60 days of 2024 to a county, state or federal prison Before using paper, E-File and select the Direct Deposit option for a faster refund! Be sure to use www.azdor.gov to access your preferred software vendor to ensure free filing for your federal and state returns. Do-It-Yourself with fillable forms. Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box. You may qualify to file your federal and Arizona individual income returns for FREE!! Free federal and state tax preparation for taxpayers who are: x Elderly x Americans with disabilities x Low income For locations, call 211 or go to www.211arizona.org 54

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 when you file your state and federal taxes.

Tax Year 2024 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $18,591 ($25,511 if MFJ) $632 1 $49,084 ($56,004 if MFJ) $4,213 2 $55,768 ($62,688 if MFJ) $6,960 3 or more $59,899 ($66,819 if MFJ) $7,830 *your age 25 - 64 MFJ = Married Filed Jointly

Tax Year 2024 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 2024 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! y Save for a House y Save for a Car y Save for a College Education

QUICK AND EASY ACCESS TO TAX HELP AND FORMS ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 CONTENTS 140 CREDITS Credits from Form 301 ......... 43 Family income tax credit ...... 42 Increased excise tax credit ... 46 Property tax credit ................ 46 Credit for taxes paid to another state or country ....... 44 DEDUCTIONS Itemized deductions ............. 41 Standard deduction .............. 41 EXEMPTIONS Age 65 or older ...................... 12, 40 Blind ...................................... 12, 40 Dependents ........................... 13 Qualifying parents and grandparents ......................... 12, 40 FILING INFORMATION Do you have to file ................ 7 Estimated tax ........................ 10 Filing extensions ................... 9 Penalties and interest ........... 9 When to file ........................... 9 Mailing your return .............. 50 FILING STATUS All filing statuses .................. 11-13 INCOME Additions to income ............. 14 Federal adjusted gross income................................... 14 Subtractions from income .... 18 Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. Visit azdor.gov for taxpayer support services that may be accessed by phone or computer. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928 ...... (800) 352-4090 PREPARING YOUR RETURN • Ensure all the necessary lines, amounts, and forms are filled out properly. Check to make sure that calculations on your return are correct as a math error can cause delays in processing your return. • Double check spelling of names. Avoid using two different names. • Make sure that you legibly write your complete 9-digit Social Security Number (SSN) on your return. Without proper identification, the Arizona Department of Revenue (ADOR) is unable to process the return. • Write clearly or use fillable forms. Handwriting can easily be mistaken and mis-typed into ADOR systems. • Enter your routing number or account number correctly in all appropriate boxes. You are responsible for this information. • Send payment with the correct return. Send the Arizona Department of Revenue payments with the state return to ADOR and the IRS payment with the federal return to the IRS. The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account. • If you are filing a joint return, enter the SSNs in the same order every year. SUBMITTING YOUR RETURN • Sign and date the return. • Do not staple any items to the return. • Make sure you use correct postage on the envelope. • Ensure all pages are sent in together as ADOR will not process partial returns. • Include your check or money order with your return. Please do not send cash. • Include a voucher with the payment if not sending it with the return. ADOR spends time researching and connecting the payment to an account if no return or voucher is included delaying the return process. • All envelopes should be addressed to Arizona Department of Revenue then add the PO Box for the area you wish to reach. • By law, ADOR must offset any refunds to certain government agencies that have a claim against you. If you received a letter informing you of the offset, please contact the agency listed in the letter. • Please allow 8-10 weeks for processing. Do not resubmit a return or submit an electronic payment if you mailed a paper check. • Payments are one of the last items to be processed. The postmark date is used to determine if income payments and returns are timely. Did You Know? When you use tax software all the hard work is done 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 • Free E-File available for those who qualify Before using paper, E-File and select the Direct Deposit option for a faster refund!

u Pay your taxes by credit card! American Express  Visa  Discover Card  MasterCard 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 2024. This Booklet Contains: • Form 140NR – Nonresident Personal Income Tax Return • Schedule A(NR) – Itemized Deduction • Form 204 – Extension Request 2 24 Arizona Form 140NR Nonresident Personal Income Tax Booklet Where’s my Refund? Check your refund status at www.AZTaxes.gov 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, 2024. If you use the amounts from your 2024 federal tax return to complete your Arizona return and the Legislature does not adopt the 2024 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 2024 conformity. Before using paper, E-File and select the Direct Deposit option Fast: Faster processing of your refund and money in your account sooner. In some cases, 6 times faster. 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.

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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 2024, except for changes Congress made to the federal tax code during 2024, and the following applies:

1. The changes affect how you figure your federal adjusted gross income.

AND/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 kept the same. The legislature will address this issue when it is in session during 2025. The Arizona Department of Revenue must publish these forms before this issue is addressed by the legislature. When ADOR went to print, Arizona had not yet adopted any federal tax law changes made after January 1, 2024.

What does this mean to you? It means that if any of the federal law changes made after January 1, 2024 apply to your 2024 return, you can opt to file your 2024 return using one of the following methods:

1. You can wait and file your 2024 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 2024 return, assuming that the federal law changes will be adopted. The 2024 tax forms make these assumptions.

If you opt for method 2, one of the following will apply: x If Arizona adopts those changes, you do not have to do anything more. x If Arizona does not adopt all federal changes, you may need to amend your 2024 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 web page at https://azdor.gov/legal-research/conformity-irc. x 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 2024 return, and you file and pay the required amended return by the extended due date of your 2025 return.

3. You can file your 2024 return, assuming that we will not adopt the federal law changes. If you opt for this method, you will have to do the following:

x You will have to research all of the federal changes made after January 1, 2024. x You will have to figure out if any of those changes apply to you. x You will have to figure out how to make adjustments for those changes on your return.

If you opt for method 3, one of the following will apply: x If Arizona does not adopt those changes, you do not have to do anything more. x If Arizona adopts those changes, you may need to amend your 2024 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 web page at https://azdor.gov/legal-research/conformity-irc. 3

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Individual Income Tax - Highlights

2024 Due Date for Calendar Year Filer Your 2024 individual income tax return is due by midnight on April 15, 2025. If you file under a valid extension, your extended due date to file your income tax return is October 15, 2025.

Arizona 2024 Changes Some of these changes include:

2024 Arizona Standard Deduction Amounts Adjusted The 2024 Arizona standard deduction amounts are: y $ 14,600 for a single taxpayer or a married taxpayer filing a separate return; y $ 29,200 for a married couple filing a joint return; and y $ 21,900 for individuals filing a head of household return.

Change to Standard Deduction Increase for Charitable Contributions For taxpayers who do not itemized deductions on their 2024 Arizona income tax return and elect to take the standard deduction, the allowable Standard Deduction Increase was modified. For tax year 2024, the allowable portion of your charitable contributions used to compute your Standard Deduction Increased was increased from 31% to 33% of the qualified charitable contributions made during the tax year. Taxpayers must complete page 3 of their personal income tax form to claim the Standard Deduction Increase. (Arizona Form 140, Form 140PY or Form 140NR).

2024 New Tax Rate of 2.5% for All Income Levels and Filing Status The Optional Tax Table and the X and Y Tax Table are now obsolete.

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 2024, the maximum current year credit is: x $731 for single and head of household taxpayers. x $1,459 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 2024, the maximum current year credit is: x $728 for single and head of household taxpayers. x $1,451 for married taxpayers filing a joint return.

Credit for Contributions to Qualifying Foster Care Charitable Organizations This individual income tax credit is available for contributions to Qualifying Foster Care Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability, and provide immediate basic needs to at least 200 qualifying individuals in the foster care system. The tax credit is claimed on Form 352.

The maximum QFCO credit donation amount for 2024: x $587 single, married filing separate or head of household x $1,173 married filing joint.

The maximum QFCO credit donation amount for 2025: x $618 single, married filing separate or head of household; x $1,234 married filing joint.

Please Note: Arizona law allows QFCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. The maximum credit that can be claimed on the 2024 Arizona return for donations made to QFCO's is $587 for single, married filing separate and head of household taxpayers, and $1,173 for married filing joint taxpayers. If a taxpayer makes a QFCO donation from January 1, 2025 through April 15, 2025 and wants to claim the higher 2025 maximum credit amount, the taxpayer will need to claim the credit on their 2025 Arizona return filed in 2026.

Credit for Contributions to Qualifying Charitable Organizations This individual income tax credit is available for contributions to Qualifying Charitable Organizations that provide immediate basic needs to residents of Arizona who receive temporary assistance for needy families (TANF) benefits, are low income residents of Arizona, or are individuals who have a chronic illness or physical disability. The tax credit is claimed on Form 321.

The maximum QCO credit donation amount for 2024: x $470 single, married filing separate or head of household; x $938 married filing joint.

The maximum QCO credit donation amount for 2025: x $495 single, married filing separate or head of household; x $987 married filing joint.

Please Note: Arizona law allows QCO donations made during 2024 or donations made from January 1, 2025 through April 15, 2025 to be claimed on the 2024 Arizona income tax return. The maximum credit that can be claimed on the 2024 Arizona return for donations made to QCO's is 5

Individual Income Tax - Highlights

2024 $470 for single, married filing separate or head of household taxpayers, and $938 for married filing joint taxpayers. If a taxpayer makes a QCO donation from January 1, 2025 through April 15, 2025 and wants to claim the higher 2025 maximum credit amount, the taxpayer will need to claim the credit on their 2025 Arizona return filed in 2026.

Credit for Solar Energy Devices (Commercial and Industrial Applications) Form 336 Because this credit was required to be established by the 2018 tax year and the five year carry forward period expired in 2023 this form will not be available for the 2024 tax year and beyond.

6

Arizona Form 2024 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. Leave the Paper Behind - e-file! x Quicker Refunds x Accurate x Proof of Acceptance x 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, 2025, 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 x 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 29, for completing a composite return. x 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 the last page of these instructions 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 2024, 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: x wages; x rental income; x business income; x the sale of Arizona real estate; x interest and dividends having a taxable or business situs, in this state; and x any other income from an Arizona source. Do You Have to File? Arizona Filing Requirements These rules apply to all Arizona taxpayers. You must file if you are: and your gross income is more than: x Single $ 14,600 x Married filing joint $ 29,200 x Married filing separate $ 14,600 x Head of Household $ 21,900 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 federal adjusted gross income that represents your Arizona 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 that Arizona law does not tax. Income that Arizona law does not tax includes: x interest from U.S. Government obligations; x social security retirement benefits received under Title II of the Social Security Act; x 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; x pay received for active service as a member of the Reserves, National Guard, or the U.S. Armed Forces; or x benefits, annuities and pensions as retired or retainer pay of the uniformed services of the United States If you are the surviving spouse of a deceased military veteran, and are receiving payments from the uniformed services of the United States, you may exclude 100% of the payments you received. 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. 

Arizona Form 140NR 2 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. 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: x You are an enrolled member of an Indian tribe. x You live on the reservation established for that tribe. x 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 you are 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: x You are an active duty member of the United States armed forces. x Your only income for the taxable year is pay received for active duty military service. x 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 you are stationed in Arizona, the following applies to you: x You are not subject to Arizona income tax on your military pay. x 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. The child should not file an Arizona return. The parent must include that same income in their 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 Arizona 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 2024: x You moved into Arizona with the intent of becoming a resident. x You moved out of Arizona with the intent of giving up your Arizona residency. Nonresidents If you are a nonresident (including nonresident aliens), 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 2024, 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 2024 and you did not remarry in 2024 or if your spouse died in 2025 before filing a return for 2024, you may file a joint return. If your spouse died in 2024, the joint return should show your spouse's 2024 income before death and your income for all of 2024. If your spouse died in 2025, before filing the 2024 return, the joint return should show all of your 

Arizona Form 140NR 3 income and all of your spouse's income for 2024. 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. 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 Form 131 behind Form 140NR when mailing the return. If you are claiming a refund on Form 140NR-SBI for a deceased taxpayer, you must also complete Arizona Form 131-SBI, Claim for Refund on Behalf of Deceased Taxpayer. Place Form 131-SBI behind Form 140NR-SBI return when mailing the returns. What are the Filing Dates and Penalties? NOTE: If the due date for an income tax or related payment falls on a weekend and/or legal holiday, the filing or payment is considered timely if filed or paid on the next business day and that business day is a day other than Saturday, Sunday or a legal holiday. When Should You File? Your 2024 calendar year tax return is due no later than midnight, April 15, 2025. File your return as soon as you can after January 1, 2025, but no later than April 15, 2025. 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. If you request an extension to file your 2024 calendar year tax return, your due date is October 15, 2025 to timely file your 2024 tax return. 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 x Apply for a state extension (Arizona Form 204). To apply for a state extension, file Form 204 by April 15, 2025. 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. x 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, 2025, even though your federal return is due on June 16, 2025. If you want to file your Arizona return after April 15, 2025, you must ask for a filing extension. You must file this request by April 15, 2025. Arizona will allow up to a 6-month extension. This will allow you to file your return by October 15, 2025. 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, 2025, even though your federal return will not be due until December 15, 2025. If you file your 2024 Arizona calendar year return after October 15, 2025, 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 2024 calendar year return by April 15, 2025, 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 a 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).

Arizona Form 140NR 4 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. 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 2025? You must make Arizona estimated income tax payments during 2025 if: Your filing status is: AND your Arizona gross income for 2024 was greater than: AND your Arizona gross income for 2025 is greater than: Single $ 75,000 $ 75,000 Married filing joint $150,000 $150,000 Married filing separate $ 75,000 $ 75,000 Head of Household $ 75,000 $ 75,000 If you met the income threshold for 2024, you must make estimated payments during 2025 unless you are sure you will not meet the threshold for 2025. 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 2024 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. 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 x You must complete your federal return before you can start your Arizona return. x Make sure that you enter your Social Security Number (SSN) on your return. x Complete your return using black ink. x 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. x If you are mailing your return, see the last page of these instructions for the assembly order. x Make sure you include your daytime telephone number. x If filing a fiscal year return, fill in the period covered. 

Arizona Form 140NR 5 Entering Your Name, Address and SSN 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. Enter your spouse’s name and SSN on the second line 1. 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 in the last 4 years, enter any other last name(s) that you or your spouse used when filing your return during that period. ou or d. 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: x his or her PTIN, x his or her SSN, or x 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, 2024. 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 2024 and you did not remarry in 2024. 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 for back child support, court fees, and fees to counties, cities or educational institutions. The taxpayer (spouse) requesting injured spouse protection must have Arizona income with taxes withheld and reported on their own Form W-2 or Form 1099. 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. 

Arizona Form 140NR 6 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: x You qualify to file as head of household on your federal return, or x 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, 2024, 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. NOTE: In some cases, you may treat community income as separate income. For more information on when you may treat community income as separate income, see the department’s ruling, ITR 93-22, When Community Income May Be Treated as Separate Income. Box 7 - Single Return If you are filing as single, check box 7. Use this filing status if you were single on December 31, 2024. You are single if any of the following apply to you: x You have never been married. x You are legally separated under a decree of divorce or of separate maintenance. x You were widowed before January 1, 2024, you did not remarry in 2024, and you do not qualify to file as a qualifying widow or widower with dependent children on your federal return. NOTE: If you got divorced during the year, see the department’s ruling, ITR 14-2, Reporting Income, Deductions, Exemptions, and Withholding for Divorced Individuals for the Year of Divorce; and publication, Pub. 200, Income Tax Issues Affecting Married and Divorced Taxpayers. Exemptions - Boxes 8 and 9 Enter the number of exemptions you are claiming in boxes 8 and 9. Do not put a check mark or “X”. You may lose the exemption if you put a checkmark or “X” in these boxes. Box 8 - Age 65 or Over NOTE: If a taxpayer’s 65th birthday was January 1, 2025 (born 1/1/1960), that person is considered to be age 65 at the end of 2024 for federal income tax purposes and likewise for Arizona income tax purposes. x If you are single or filing as head of household, enter "1" in box 8 if you were 65 or older in 2024 and not claimed as a dependent by another taxpayer. x If you are married filing a joint return, enter "1" in box 8 if you were 65 or older and not claimed as a dependent by another taxpayer or your spouse was 65 or older in 2024 and not claimed as a dependent by another taxpayer. Enter "2" in box 8 if both you and your spouse were 65 or older in 2024 and neither of you are claimed as a dependent by another taxpayer. x If you are married and filing a separate return, enter "1" in box 8 if you were 65 or older and not claimed by another taxpayer. You cannot take an exemption for your spouse. Your spouse, if 65 or older and not claimed by another taxpayer, may take this exemption on his/her own separate return. Box 9 - Blind If you or your spouse were partially blind as of December 31, 2024, you must get a statement certified by your eye doctor or registered optometrist that either: x You cannot see better than 20/200 in your better eye with glasses or contact lenses, or x Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to that effect instead. You must keep the statement for your records. x If you are single or filing as head of household, enter "1" in box 9 if you are totally or partially blind. x 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" in box 9 if both you and your spouse are totally or partially blind. x If you are married and filing a separate return, you may take an exemption for yourself if you are totally or partially blind. You may only claim an exemption for your spouse if your spouse (1) is totally or partially blind, (2) has no Arizona adjusted gross income for calendar year, and (3) is not the dependent of another taxpayer. Enter "1" in box 9 if you are totally or partially blind or your spouse is totally or partially blind and your spouse meets the above criteria. Enter “2” in box 9 if you are totally or partially blind and your spouse is totally or partially blind and your spouse meets the above criteria, and your spouse meets the above criteria. 

Arizona Form 140NR 7 Dependents - Boxes 10a and 10b Boxes 10a and 10b Boxes 10a and 10b identify the number of your qualifying dependents that are either under the age of 17 (box 10a) or age 17 and over (box 10b). This information is used to compute the allowable Dependent Tax Credit. Include only those dependents in box 10a or 10b that you are using to compute the allowable Dependent Tax Credit on line 59. Lines 10c through 10f You must complete the dependent information section (lines 10c through 10f on page 1 (and Part 1 on page 4, if more space is needed), for each person counted in either box 10a or 10b. Be sure to check the box on page 1 indicating you are completing page 4. You may claim only those individuals that qualify as your dependent for federal purposes. For each qualifying individual, enter the following information: a) first and last name; b) SSN; 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 2024, 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 2024. 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 32 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 you are married and 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 2024 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 2024 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. 

Arizona Form 140NR 8 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 2024 Arizona gross income can include only Arizona source losses you used on your 2024 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. 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 2024 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 the 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)] x 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)]. x In the year the carryforward amount is used for federal purposes, assuming the 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: x Rent or royalty income earned on Arizona properties. x Income from Form 141AZ Schedule K-1(NR), line 2 from estates or trusts. x 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. 

Arizona Form 140NR 9 Line 24 - Other Federal Adjustments On line 24, include any other federal adjustments included in your federal adjusted gross income that are attributable to the Arizona source income reported on your 2024 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. Examples: Arizona Gross Income from line 26 Federal Adjusted Gross Income from line 25 Arizona income ratio $ 17,516 $ 32,000 17,516/32,000 = .547375 enter on line 27: $ 25,650 $ 92,100 25,650/92,100 = .278501 enter on line 27: $ 10,000 $ 9,000 10,000/9,000 = 1.11111 enter on line 27: x 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. x 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. x 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. x If Arizona gross income and federal adjusted gross income are both zero, enter 1.000 on line 27. x If Arizona gross income is zero, and federal adjusted gross income is negative, enter 0.000 on line 27. x 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. Arizona Small Business Tax Return Individuals may elect to report their small business income on Arizona Form 140NR-SBI, Small Business Income, for the small business income amount included in their federal adjusted gross income. An individual’s small business income is reported on federal Schedules B, C, D, E, F and Form 4797 (for amounts not included on Schedule D). For more information, see Form 140NR-SBI and instructions. Additional information and guidance can be found in the department’s Publication 712, Summary of Arizona Small Business Income and Taxation. How do I elect to report small business income on Arizona Form 140NR-SBI? Taxpayers make the election by simply completing Form 140NR-SBI reporting their small business income and including the completed form with their Form 140NR tax return, when filed. NOTE: You must include Form 140NR-SBI with your Form 140NR, when filed. If you do not include Form 140NR-SBI with your Form 140NR, processing of your return may be delayed or your subtraction on line 28 may be denied. See the Mailing instructions for the correct address when mailing both Form 140NR and Form 140NR-SBI. Modified Arizona Gross Income Line 28 - Small Business Income If you elect to report your small business income on Arizona Form 140NR-SBI, check the box on line 28 and enter the amount of small business income reported on Form 140NR-SBI, line 10. If you are not making this election, enter “0” on line 28. NOTE: If you are filing a “zero” SBI return to claim any overpayment from estimated/extension payments made for the SBI tax return, check the box and enter “zero” on line 13. Be sure to file both returns together by the due date (including extension). See Form 140NR-SBI form instructions for completing a “zero” tax return. Line 29 – Modified Federal Adjusted Gross Income Subtract line 28 from line 26. Additions to Income NOTE: x If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following additions are directly related to the small business income, report that addition on Form 140NR-SBI. If the addition is not directly related to small business income, make the addition on Form 140NR. x If you are not filing Form 140NR-SBI, make that addition on Form 140NR. 5 4 . 7 2 7 . 9 0 0 1 . 0 

Arizona Form 140NR 10 As a nonresident, include only those additions listed below that are related to Arizona source income reported on Form 140NR. Line 30 - Total Depreciation Included in Arizona Gross Income If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 31 - Partnership Income Adjustment (Positive) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. Depending on your situation, you may either add (line 31) 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 31. NOTE: If the difference reported on line 17, column (c) of your Arizona Form 165 Schedule K-1(NR) is a negative number, enter the portion of the difference that is allocable to partnership income taxable by Arizona as a subtraction on line 41. Line 32 - Other Additions to Arizona Gross Income Use line 32 if any of the special circumstances below apply. NOTE: If you are reporting any adjustment on line 32, complete the schedule on page 5 of your tax return, Other Additions to Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 32, do not include page 5 with your return. A. Fiduciary Adjustment - Form 141AZ Schedule K-1(NR) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 32) 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 32. 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. 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 2024 NOTE: For items C and D; taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2024, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140NR-SBI return if the income were reported in 2024, the adjustment should be made in the 140NR-SBI return. All other claim of right adjustments should be made on the regular 140NR return. You must make an entry here if all of the following apply: 1. During 2024, 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 2024 was more than $3,000. 4. You took a deduction for the amount repaid on your 2024 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 2024, 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 2024 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. 

Arizona Form 140NR 11 E. Adjustment for Net Operating Loss due to Claim of Right You must add-back the adjustment for any net operating loss previously claimed that is related to the amount of your claim of right reported. F(a) Addition Due to Claiming the Agricultural Water Conservation System (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. You must make an addition to income for the amount of expenses disallowed by reason of claiming the credit. See the instructions for completing Credit Form 312. F(b). Addition to S Corporation Income Due to Claiming Pass-Through Credit for Agricultural Water Conservation system (Credit 312) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. Shareholders of an S corporation who claim a credit passed through from an S corporation must make an addition to their 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 (Form 312-S, line 1). Shareholders must include an amount on this line when claiming the Agricultural Water Conservation System Credit (Form 312). See the instructions for completing Credit Form 312. G(a). Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses (Credit 338) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed (Credit 338) and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 (Credit 338). G(b). Adjusted Basis in Property for Which You Previously Claimed a credit for Pollution Control Equipment (Credit 315) If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you claimed a credit for pollution control equipment (Form 315) before tax year 2022, you must adjust your basis on the Arizona return that you file for the taxable year in which you sell or otherwise dispose of the equipment. If you sold or otherwise disposed of the investment during the 2024 taxable year, include the amount by which the adjusted basis computed under the IRC with respect to that property exceeds the adjusted basis of the property computed under A.R.S. § 43-1081 G(c). Adjusted Basis in Property for Which You Have Claimed an Agricultural Pollution Control Equipment (Credit 325) If you are making the small business election and this addition is directly related to small business income reported on Form 140-SBI, do not report the addition on Form 140, enter the addition on Form 140-SBI. The amount by which the adjusted basis computed under the internal revenue code with respect to property that is agricultural pollution control equipment for which a credit (Credit 325) was taken before taxable year 2022 and that is sold or otherwise disposed of during 2024 exceeds the adjusted basis of the property for agricultural pollution control equipment computed under section 43-1081.01 (Credit 325). H. Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income 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. If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. I. Americans with Disabilities Act Access Expenditures If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 A.R.S. Title 41, chapter 9, article 8, any amount of eligible access expenditures that is recognized under the IRC, including any amount that is amortized 

Arizona Form 140NR 12 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 a 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. Net Capital (Loss) from the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. 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 page 6, “M”. 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. L. Entity-Level Income Tax Payment If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you are claiming the income tax credit on Form 355, Credit for Entity-Level Income Tax Paid on Your Behalf from a Partnership and/or an S Corporation, you must add the amount deducted by the partnership and/or S Corporation for the amount of Arizona income tax paid on your behalf in 2024. Enter the total amount of tax paid shown on: x Arizona Form 165, Schedule K-1(NR), Part 8, lines 24 to 27. x Arizona Form 120S, Schedule K-1(NR), Part 6, lines 22 to 25. NOTE: Enter the tax amount actually paid by the Partnership or S Corporation in 2024. Tax amounts paid in 2024 for tax year 2024 will be added-back on your 2024 tax return. These payments include any 4th QTR estimated taxes paid in January 2024 and any 2024 tax payments made with the Entity’s tax return on your behalf. M. Credit for Motion Picture Production Costs If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. If you are claiming a credit on Form 334, Credit for Motion Picture Production Costs, you must make an adjustment (addition) to your Arizona gross income for the amount of any motion picture production costs that was deducted pursuant to the Internal Revenue Code (IRC) for which a tax credit is claimed on Form 334. If you received a pass-through credit from a partnership, LLC or S Corporation, you must also add-back your pro-rated expenses shown on your Form 334-P, Line 4b and/or Form 334-S, line 4b, provided by the pass-through entity. N. Other Adjustments Related to Tax Credits If you are making the small business election and this addition is directly related to small business income reported on Form 140NR-SBI, do not report the addition on Form 140NR, enter the addition on Form 140NR-SBI. You may also need to make an addition if you claimed certain tax credits. • If you claimed the Agricultural Pollution Control Equipment Credit (Form 325) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 325 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property computed under section 43-1081.01. • If you previously claimed the Pollution Control Equipment Credit (Form 315) before tax year 2022, you must make an addition to income for the amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken on Credit Form 315 that exceeds the amount of depreciation or amortization computed pursuant to internal revenue code on the Arizona adjusted bases of the property computed under section 43-1081. If you have more than one adjustment related to tax credits, add the amounts together and enter the total. 

Arizona Form 140NR 13 O. Other Adjustments If you are making the small business election, do not make the addition here, make it on the 140NR-SBI tax return. 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. P. Total Other Additions to Arizona Gross Income Add all amounts from page 5 and enter the total on line 32. Line 33 - Subtotal Add lines 29, 30, 31 and 32. Enter the total on line 33. Subtractions from Income NOTE: x If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140NR-SBI. If the subtraction is not directly related to small business income, make the subtraction on Form 140NR. x If you are not filing Form 140NR-SBI, make that subtraction on Form 140NR. As a nonresident, include only those subtractions listed below that are related to Arizona source income reported on Form 140NR. 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 34 through 38 - Net Capital Gain or (Loss) NOTE: For lines 34-38; if you elected to file the Arizona Small Business Income Tax Return, only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. If you have net capital gains or (losses) not related to small business income, enter those amounts on Form 140NR, lines 34-38. If you are not filing a small business income tax return, include all allowable net capital gains or (losses) on Form 140NR, lines 34-38. If you enter an amount on line 34, you must also complete lines 35 and 36. If you do not complete these lines, you cannot take the subtraction on line 38. NOTE: If you do not have any net capital gain or (loss) to report, enter “0” on lines 34-37. 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 34 - Total Arizona Sourced Net Capital Gain or (Loss) Enter the amount shown on line 20 of the Arizona column.n. Line 35 - Total Arizona Sourced Net Short-Term Capital Gain or (Loss) s) Enter the amount of total Arizona sourced net short-term capital gain reported on line 35. 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 35. Line 36 - Total Arizona Sourced Net Long-Term Capital Gain or (Loss) s) Enter the amount of total Arizona sourced net long-term capital gain or (loss) included in line 34. 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 37 – 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 38 – Arizona Sourced Net Long-Term Capital Gain Subtraction from Income for Assets Acquired After December 31, 2011 Multiply the amount on line 37 by 25% (.25) and enter the result. NOTE: If you take a subtraction on line 39 that includes any long-term capital gain from an investment in qualified small business made after December 31, 2011, you cannot include that portion of the net capital gain in your computation of the allowable subtraction on line 38 for any net long-term capital gain from assets acquired after December 31, 2011 and included in federal adjusted gross income. 

Arizona Form 140NR 14 1099-DIV: If you received Form 1099-DIV issued from a fund Administrator and the 1099-DIV included long-term capital gains from the sale of assets within the fund (for example a mutual fund) for the current tax year and the form did not include the acquisition date of each asset sold within the fund, you cannot verify that the long-term capital gain was from an asset acquired by the Fund was after December 31, 2011, for the purpose of the allowable subtraction on line 38. In this case, you may want to contact the Fund Administrator and request to obtain the acquisition date of each asset sold within the fund. If the Administrator does not provide you with the specific date(s), then those assets cannot be included on line 37. 1099-B: If you received Form 1099-B showing a capital gain or (loss) from the sale of your portion of a fund (for example a mutual fund), Form 1099-B would generally include your purchase date of the fund including acquisition dates of assets included in your portion of the fund when reporting short-term or long-term capital gains or (losses). In this case, you would know the specific date the asset was acquired and those assets may be included on line 37. Line 39 - Net Capital Gain from Investment in a Qualified Small Business If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI tax return. 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. See the ACA’s website, Small Business Incentives: Angel Investment, for a list of certified businesses and their certification dates. On line 39, enter the amount of the allowable subtraction. Line 40 - Recalculated Arizona Depreciation If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 40. Line 41 - Partnership Income Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 parentheses. 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 31. 

Arizona Form 140NR 15 Line 42 Subtract lines 38 through 41 from line 33 and enter the difference. Line 43 - Interest on U.S. Obligations If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. Arizona law allows for a subtraction for qualified crop gifts made during 2024 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. Line 45 - Other Subtractions from Income NOTE: x If you are electing to report your Arizona sourced small business income on Form 140NR-SBI and if any of the following subtractions are directly related to the small business income, report that subtraction on Form 140NR-SBI. If the subtraction is not directly related to small business income, make the subtraction on Form 140NR. x If you are not filing Form 140NR-SBI, make that subtraction on Form 140NR. As a nonresident, include only those subtractions listed below that are related to Arizona source income reported on Form 140NR. Use line 45 if any of the following special circumstances apply. NOTE: If you are reporting any adjustment on line 45, complete the schedule on page 6 of your tax return, Other Subtractions from Arizona Gross Income, and include it with your return. If you are not reporting any adjustment on line 45, do not include page 6 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: x a qualified wood stove, x a qualified wood fireplace, or x 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 a residential 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 NOTE: For taxpayers that made the election to file an Arizona Small Business Income Tax Return in 2024, if the income required to be paid back under the claim of right is the type of income that would be included in lines 4 through 9 of the 140NR-SBI return if the income were reported in 2024, the adjustment should be made in the 140NR-SBI return. All other claim of right adjustments should be made on the regular 140NR return. 

Arizona Form 140NR 16 You must make an entry here if all (1-6) of the following apply: 1. During a year prior to 2024, 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 2024 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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: x the Federal Work Opportunity Credit, x the Empowerment Zone Employment Credit, x the credit for employer-paid social security taxes on employee cash tips, and x the Indian Employment Credit. If you claimed any of the above federal tax credits for 2024, 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. For property used in an Arizona business that is sold or otherwise disposed of during the taxable year by a taxpayer who added back all depreciation for that property 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 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 32) or subtract (line 45) 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 “Other Additions to Income” on line 32. G. Net Operating Loss Adjustment If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 2024 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 

Page 1 of 6 88R REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81P PM 80R RCVD ADOR 10177 (24) AZ Form 140NR (2024) FILING STATUS EXEMPTIONS  ÐEnter the number claimed. Do not put a check mark.

4 Married filing joint return 4a Injured Spouse Protection of Joint Overpayment

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

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

7 Single Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if box 4 or 6 checked) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. Daytime Phone (with area code) City, Town or Post Office State ZIP Code Last Names Used in Last Four Prior Year(s) (if different) 1 1 2 94 3 97 Enter your SSN(s). Dependents Arizona Income Additions Subtractions – cont. on page 2 Arizona Form 140NR Nonresident Personal Income Tax Return FOR CALENDAR YEAR 2024 82F Check box 82F if filing under extension Place any required federal and AZ schedules or other documents after Form 140NR. DO NOT STAPLE ANY ITEMS TO THE RETURN. OR FISCAL YEAR BEGINNING M M D D 2 0 2 4 AND ENDING M M D D 2 0 Y Y . 66F

8 Age 65 or over (you and/or spouse)

9 Blind (you and/or spouse)

10a Dependents: Under age of 17. 10b Dependents: Age 17 and over. 11-13 Residency Status (check one): 11 Nonresident 12 Nonresident Active Military 13 Composite Return (see instructions - page 29) If completing lines 8 and 9, also complete lines 47 and 48. For lines 10a and 10b, complete line 59. (Box 10a and 10b): Dependent Information. See instructions. For more space, check the box and complete page 4. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9Dependent Age included in: 1 2 (Box 10a) (Box 10b) (f) 9 if you did not claim this person on your federal return due to educational credits 10c



10d



10e



10f



14 Check box 14 if married and you are the spouse of an active duty military member who qualifies for relief under the Military Spouses Residency Relief Act ..................14

2024 FEDERAL Amount from Federal Return 2024 ARIZONA Source Amount Only 15 Wages, salaries, tips, etc .................................................................................................... 15 00 00 16 Interest ................................................................................................................................ 16 00 00 17 Dividends ............................................................................................................................ 17 00 00 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 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 x 28 Small Business Income: 28S check the box if you are filing Form 140NR-SBI and enter the amount from Form 140NR-SBI, line 10................ 28 00 29 Modified Arizona gross income. Subtract line 28 from 26........................................................................................... 29 00 30 Total depreciation included in Arizona gross income.................................................................................................... 30 00 31 Partnership Income adjustment. See instructions .......................................................................................................... 31 00 32 Other Additions to Income. Complete Other Additions to Arizona Gross Income schedule on page 5 ....................... 32 00 33 Subtotal: Add lines 29, 30, 31 and 32. Enter the total ............................................................................................... 33 00 34 Total Arizona sourced net capital gain or (loss). See instructions .......................................... 34 00 35 Total net short-term capital gain or (loss) included on line 20, ARIZONA column .............. 35 00 36 Total net long-term capital gain or (loss) included on line 20, ARIZONA column ................. 36 00 37 Net long-term capital gain from assets acquired after December 31, 2011. See instructions 37 00 38 Multiply line 37 by 25% (.25) and enter the result ........................................................................................................ 38 00 39 Net capital gain derived from investment in qualified small business .......................................................................... 39 00 40 Recalculated Arizona depreciation ............................................................................................................................... 40 00 41 Partnership Income adjustment. See instructions .......................................................................................................... 41 00 42 Subtract lines 38 through 41 from line 33. Enter the difference .................................................................................. 42 00 23

ADOR 10177 (24) AZ Form 140NR (2024)

Page 2 of 6 Your Name (as shown on page 1) Your Social Security Number Subtractions cont. from page 1 Exemptions Balance of Tax Total Payments and Refundable Credits Tax Due or Overpayment Penalty Refund or Amount Owed Voluntary Gifts 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 SIGNATURE

DATE

OCCUPATION

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. Ä Ä PLEASE SIGN HERE 43 Interest on U.S. obligations such as U.S. savings bonds and treasury bills .................................................................. 43 00 44 Agricultural crops contributed to Arizona charitable organizations ................................................................................ 44 00 45 Other Subtractions from Income: Complete Other Subtractions from Arizona Gross Income schedule on page 6..... 45 00 46 Subtract lines 43, 44 and 45 from line 42. Enter the difference................................................................................... 46 00 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 00 52 Arizona adjusted gross income: Subtract line 51 from line 46. If less than zero, enter “0” ................................................. 52 00 53 Deductions: Check box and enter amount. See instructions .......................53I ITEMIZED 53S STANDARD 53 00 54 If you checked box 53S and claim charitable contributions, check 54C Complete page 3. See instructions................. 54 00 55 Arizona taxable income: Subtract lines 53 and 54 from line 52. If less than zero, enter “0”..................................................... 55 00 56 Tax: Multiply line 55 by 2.5% (.025). Enter the result................................................................................................... 56 00 57 Tax from recapture of credits from Arizona Form 301, Part 2, line 30 ........................................................................... 57 00 58 Subtotal of tax: Add lines 56 and 57. Enter the total .......................................................................................................... 58 00 59 Dependent Tax Credit. See instructions........................................................................................................................... 59 00 60 Nonrefundable credits from Arizona Form 301, Part 2, line 60...................................................................................... 60 00 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 00 62 2024 AZ income tax withheld......................................................................................................................................... 62 00 63 2024 AZ estimated tax payments ..63a 00 Claim of Right 63b 00 Add 63a and 63b. 63c 00 64 2024 AZ extension payment (Form 204) ....................................................................................................................... 64 00 65 Other refundable credits: Check the box(es) and enter the total amount............................651 308-I 652 334 653 349 65 00 66 Total payments and refundable credits: Add lines 62 through 65. Enter the total .......................................................... 66 00 67 TAX DUE: If line 61 is larger than line 66, subtract line 66 from line 61. Enter amount of tax due. Skip lines 68, 69 and 70 ........... 67 00 68 OVERPAYMENT: If line 66 is larger than line 61, subtract line 61 from line 66. Enter amount of overpayment ........................... 68 00 69 Amount of line 68 to be applied to 2025 estimated tax.................................................................................................. 69 00 70 Balance of overpayment: Subtract line 69 from line 68. Enter the difference........................................................................ 70 00 71 - 81 Voluntary Gifts to: Solutions Teams Assigned to Schools ...........71 00 Arizona Wildlife ............... 72 00 Child Abuse Prevention ...........73 00 Domestic Violence Services 74 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 and Road Fund ...................80 00 Spay/Neuter of Animals .. 81 00 82 Political Party (if amount is entered on line 75 - check only one): 821 Democratic 822 Libertarian 823 Republican 83 Estimated payment penalty ........................................................................................................................................... 83 00 84 841 Annualized/Other 842 Farmer or Fisherman 843 Form 221 included 85 Add lines 71 through 81 and 83. Enter the total ........................................................................................................... 85 00 86 REFUND: Subtract line 85 from line 70. If less than zero, enter amount owed on line 87 ......................................................... 86 00 98 C Checking or S Savings 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

87 AMOUNT OWED: Add lines 67 and 85. Make check payable to Arizona Department of Revenue; write your SSN, 140NR on payment................................................................................................................................................................................................... 87 00 24

ADOR 10177 (24) AZ Form 140NR (2024)

Page 3 of 6 Your Name (as shown on page 1) Your Social Security Number 2024 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 33% (.33) 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: You must reduce your contribution amount by the total charitable contributions you made during January 1, 2024 through December 31, 2024 for which you are claiming an Arizona tax credit under Arizona law for the current tax year return or claimed on the prior tax year return. Enter this amount on line 5C. NOTE 3: 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 5C. Complete the worksheet to determine your allowable increased standard deduction for charitable contributions. 1C 2024 Gifts by cash or check. .......................................................................................................... 1C 00 2C 2024 Other than by cash or check. ........................................................................................... 2C 00 3C Carryover from prior year. ............................................................................................................. 3C 00 4C Add lines 1C through 3C and enter the total. ....................................................................... 4C 00 5C Total charitable contributions made in 2024 for which you are claiming a credit under Arizona law for the current (2024) or prior (2023) tax year. ................. 5C 00 6C Subtract line 5C from line 4C and enter the difference. If less than zero, enter “0. .................................................................................................................................................. 6C 00 7C Multiply line 6C by 33% (.33) and enter the result. ............................................................ 7C 00 8C Enter your Arizona income ratio from page 1, line 27. ..................................................... 8C x 9C Multiply line 7C by the ratio on line 8C and enter the result. ......................................... 9C 00 • Enter the amount shown on line 9C on page 2, line 54 • Be sure to check box 53S for Standard Deduction on line 53. • Check box 54C for charitable contributions on line 54. If you do not check this box, you may be denied the increased standard deduction. 25

ADOR 10177 (24) AZ Form 140NR (2024)

Page 4 of 6 Your Name (as shown on page 1) Your Social Security Number 2024 Form 140NR Dependent and Other Exemption Information 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) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) RELATIONSHIP (d) NO. OF MONTHS LIVED IN YOUR HOME IN 2024 (e) 9DEPENDENT AGE INCLUDED IN: 1 2 (Box 10a) (Box 10b) (f) 9IF YOU DID NOT CLAIM THIS PERSON ON YOUR FEDERAL RETURN DUE TO EDUCATIONAL CREDITS 10g



10h



10i



10j



10k



10l



10m



10n



10o



10p



10q



Part 2: Other Exemptions Information used to compute your allowable Other Exemptions on page 2, line 49. (a) FIRST AND LAST NAME (Do not list yourself or spouse.) (b) SOCIAL SECURITY NUMBER (c) 9AGE 65 OR OVER (see instructions) C1 C2 (d) 9STILLBORN CHILD IN 2024 1



2



3



4



5



6



7



8



9



10



Enter the total number of individuals listed in Part 2 in box 49E on page 2, line 49. 26

ADOR 10177 (24) AZ Form 140NR (2024)

Page 5 of 6 Your Name (as shown on page 1) Your Social Security Number 2024 Form 140NR - Other Additions to Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments increasing your Arizona Gross Income. Note: If you are making any adjustments reducing your Arizona Gross Income complete page 6. Other Additions to Arizona Gross Income - Line 32 (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 2024. ................................................................................ C 00 D Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years. ........................................................ D 00 E Adjustment for Net Operating loss due to Claim of Right. .............................................................................. E 00 F(a) Amount of Agricultural Water Conservation Expenses deducted under IRC for which a credit is claimed on Form 312. ...................................................................................................................................................... F(a) 00 F(b) Addition to S Corporation income due to claiming Pass-Through Credit for Agricultural Water Conservation System (Credit 312). See instructions. ...................................................................................... F(b) 00 G(a) Adjusted Basis in Property for Which You Have Claimed a Credit for Invesment in Qualified Small Businesses (Form 338) that was sold or otherwise disposed of during the tax year. See instructions. ................................................................................................................................................. G(a) 00 G(b) Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equipment (Form 315) Before Taxable Year 2024 that was sold or otherwise disposed of during the tax year. See instructions. ................................................................................................................................................. G(b) 00 G(c) Adjusted basis computed under IRC for Agricultural Pollution Control Equipment for which a credit was taken (Form 325) before taxable year 2024 that was sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property. See instructions. ....................................................................... G(c) 00 H Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary Included in Federal Adjusted Gross Income. Sole Proprietorship loss of an Arizona dual licensee that has not elected to operate on a for-profit basis must also add back the portion of their loss that is from the medical marijuana portion of the business that is included in their 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 Net capital (loss) derived from the exchange of legal tender: See instructions. .................................................. K 00 L Entity-Level Income Tax Payment. See instructions. ..................................................................................... L 00 M Motion Picture Production Costs. See instructions. ....................................................................................... M 00 N Other Adjustments Related to Tax Credits. See instructions. ........................................................................ N 00 O Other Adjustments. See instructions. .............................................................................................................. O 00 P Total Other Additions: Add all amounts and enter the total here and on page 1, line 32. ........................ P 00 27

ADOR 10177 (24) AZ Form 140NR (2024)

Page 6 of 6 Your Name (as shown on page 1) Your Social Security Number 2024 Form 140NR - Other Subtractions from Arizona Gross Income Complete and include this schedule with your tax return only if you are making any adjustments decreasing your Arizona Gross Income. Note: If you are making any adjustments increasing your Arizona Gross Income complete page 5. 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. In addition, Sole Proprietorship income of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of their federal taxable income that is from the medical marijuana portion of the business. ............................................................................................................ H 00 I Americans with Disabilities Act – Access Expenditures. ...................................................................................... I 00 J Exploration Expenses Deferred Before January 1, 1990. ......................................................................................... J 00 K Sole Proprietorship of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). An LLC that has elected to be treated as a disregarded entity for federal purposes, and also elected to operate on a for-profit basis may subtract the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Schedule DFE (line 16). ..................................................................................................................................... K 00 L S corporation Shareholders of an Arizona Marijuana Establishment, Marijuana Testing Facilities and dual licensees that operate on a for-profit basis: enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products as shown on your 120S Schedule K-1(NR), line 20. ............................................................................................................................ L 00 M Net capital gain derived from the exchange of legal tender - See instructions. ........................................................ M 00 N Value of Virtual Currency and Non-Fungible Tokens Received at the Time of the Airdrop. See instructions. ....................................................................................................................................................... N 00 O Gas Fees Not Included in Virtual Currency or Non-Fungible Token Basis. See instructions. ............................ O 00 P Other Adjustments - see instructions. ..................................................................................................................... P 00 Q Total Other Subtractions: Add all amounts and enter the total here and on page 2, line 45. ........................ Q 00 28

Include with your return. ADOR 10562 (24)

PAGE 1 of 2 Arizona Schedule A(NR) Itemized Deductions For Nonresidents 2024 Your Name as shown on Form 140NR Your Social Security Number Spouse’s Name as shown on Form 140NR (if filing joint) Spouse’s Social Security Number 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 00 4 If line 2 is more than line 1, subtract line 1 from line 2 .................................................................................. 4 00 Adjustment to Interest Deduction 5 If 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 2024 that is equal to the amount of your 2024 federal credit .............................................................................................................................................................. 5 00 Adjustment to Charitable Contributions 6 Amount of charitable contributions for which you are claiming a credit under Arizona law ........................... 6 00 Adjustment to State Income Taxes 7 Amount of state income 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 00 Itemized Deductions 8 Add the amounts on lines 3 and 5 ........................................................................... 8 00 9 Add the amounts on lines 4, 6 and 7 ....................................................................... 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. If less than zero, enter “0”.................................................................................................................... 14 00 15 Enter your Arizona income ratio from Form 140NR, page 1, line 27 .......................

15 x 16 Arizona itemized deductions: Multiply line 14 by the ratio on line 15. Enter the result here and on Form 140NR, page 2, line 53........................................................................................................................ 16 00 You must include a copy of federal Form 1040, Schedule A with your return if you itemize your deductions on your Arizona return. IMPORTANT ! 29

Your Name (as shown on page 1) Your Social Security Number 2024 Form 140NR Schedule A(NR) Adjustment to State Income Taxes Arizona Revised Statutes § 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 state income taxes paid rather than charitable contributions. ADOR 10562 (24)

AZ Schedule A(NR) (2024)

PAGE 2 of 2 1A Total state income 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 state income 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 30

2024 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 do not itemize deductions on your 2024 federal return. 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 for 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 140NR, line 53 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: x You are deducting medical and dental expenses. x You are claiming a federal credit (from federal Form 8396) for interest paid on mortgage credit certificates. x You are claiming an Arizona credit for a charitable contributions or a state income tax deduction. If any of those items (1 through 4) apply, complete federal form 1040 Schedule A and then complete lines 1 through 15. 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: x Insurance premiums you paid through the plan. x 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 2024 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 claimed a credit on Arizona Form:

For: You must make an entry on line 6 if you deducted the amount contributed as an itemized deduction on federal Form 1040 Schedule A.

321 Contributions to Qualifying Charitable Organizations 322 Contributions Made or Fees Paid to Public School 323 Contributions to Private School Tuition Organizations 331 Donation of School Site 335-I Contributions made by an S Corporation to a School Tuition Organization - Individual 31

Form 140NR Schedule A(NR) 2

If you claimed a credit on Arizona Form:

For:

340 Donations to the Military Family Relief Fund 341-I Contributions made by an S Corporation to a School Tuition Organization for Displaced Students or Students with Disabilities - Individual 348 Contributions to Certified School Tuition Organizations - Individual 352 Contributions to Qualifying Foster Care Charitable Organizations If you claimed a credit on your 2023 return for a contribution that you made during 2024 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2024 return even though you claimed the credit on your 2023 return. If you are claiming a credit on your 2024 return for a contribution made during 2025 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2025 return even though you are claiming the credit on your 2024 return. Line 7 - Adjustment to State Income Taxes Arizona Revised Statutes § 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? x If yes, stop. No adjustment is necessary. Go to line 8. x If no, complete the worksheet on page 2 of Form 140NR Schedule A(NR) to determine the amount of your adjustment to enter on line 7. Lines 8 through 13 Complete lines 8 through 13 as instructed on the form. Line 14 - Adjusted Itemized Deductions Subtract line 13 from line 12. If less than zero, enter “0”. 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.

32

88 REVENUE USE ONLY. DO NOT MARK IN THIS AREA. 81 PM 80 RCVD DO NOT STAPLE ANY ITEMS TO THE RETURN. For the calendar year 2024 or fiscal year beginning M M D D 2 0 2 4 and ending M M D D 2 0 Y Y . 66 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 Filing Form 204 will also provide an automatic 6-month extension for your Small Business Income tax return (Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI). Do not file Form 204-SBI unless you are making an extension payment for your Small Business tax return. See Form 204-SBI for more information. Use Form 204-SBI to make this payment. ADOR 10576 (24) 1 Tax liability for 2024. You may estimate this amount ...................................................................................... 1 00 2 Arizona income tax withheld during 2024 ...................................................................... 2 00 3 Arizona estimated tax payments for 2024 ..................................................................... 3 00 4 Credits you will claim on your 2024 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 X 7 00

• Make check payable to Arizona Department of Revenue; write your SSN, Form 204 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. • IMPORTANT: If you are filing under a federal extension but are making an Arizona extension payment by credit card or electronic payment, do not mail Form 204 to us. We will apply your extension tax payment to your account. • If you are sending a payment with this request, mail to Arizona Department of Revenue, PO Box 29085, Phoenix, AZ 85038-9085. • If you are not sending a payment with this request, mail to Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138. All extension requests must be postmarked on or before the original due date of the return, unless the original due date falls on a weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. If you are a calendar year filer, your request for a 2024 filing extension must be postmarked on or before April 15, 2025. An Arizona extension cannot be granted for more than six months beyond the original due date of the return. Arizona will grant an automatic six-month extension to individuals filing Forms 140, 140A, 140EZ, 140NR, 140PY, 140PTC, or 140ET. Arizona will accept a valid federal extension for the period covered by the federal extension. This includes the automatic six-month individual federal filing extension. 1 1 3 2 Enter your SSN(s). Arizona Form 204 Application for Filing Extension For Individual Returns Only FOR CALENDAR YEAR 2024 CHECK ONE BOX: Fiscal Tax Year Ending Return Due Date † Individual Calendar Year Filers: This is a request for an automatic 6-month filing extension .................................. October 15, 2025 † Individual Fiscal Year Filers: Enter taxable year end date and 6-month extended due date .............................. † A federal extension will be used to file this tax return. This form is being used to transmit the Arizona extension payment. M M D D Y Y Y Y M M D D Y Y Y Y 94 Your Daytime Phone (with area code): Your First Name and Middle Initial Last Name Your Social Security Number Spouse’s First Name and Middle Initial (if filing joint) Last Name Spouse’s Social Security No. Current Home Address - number and street, rural route Apt. No. 95. Filing Status. Must be the same as Form 140, 140A, 140EZ, 140 PTC, 140ET, 140NR, 140PY 95a Married filing joint return 95c Head of Household 95b Married filing separate return 95d Single City, Town or Post Office State ZIP Code 33

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Arizona Form 2024 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 select the About tab on the home page and select Legal Research from the drop-down menu and then click on Procedures or Rulings from the drop-down menu. Using the Category box, select the tax type and then scroll down to find the Document ID or use the Search Keyword function to locate the document. Publications To view or print the department’s publications, go to our website select the About tab on the home page and select Legal Research from the drop-down menu and then click on Publications from the drop-down menu. 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. NOTE: If you elected to report your small business income on Form 140-SBI, Form 140NR-SBI or Form 140PY-SBI, filing Form 204 will also provide an automatic 6-month extension to file your small business income tax return. You cannot make an extension payment for your small business income tax return using Form 204. You must complete and file Form 204-SBI to make an extension payment for your small business income tax return. For more information see Form 204-SBI and instructions. 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. Completing Form 204 x Enter your name and SSN on the first line 1. x If filing a joint return with your spouse, enter your spouse’s name and SSN on the second line 1. x Enter your current address on lines 2 and 3. x Box 95: Select the filing status that you will use on Form 140, 140A, 140EZ, 140PTC, 140ET, 140NR or 140PY. x Box 94: enter your daytime phone (with area code). x Check which form this filing extension request if filed for. x Complete the rest of form following the directions on the form. 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). 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 weekend or legal holiday. In that case, your request must be postmarked on or before the business day following the weekend or legal holiday. Calendar year filers have until April 15, 2025 to file the request for an extension. This will allow you to file your return by October 15, 2025. Complete Form 204 to request an automatic 6-month extension. Write 2024 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, 2025 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 35

Arizona Form 204 2

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, 2025 even though your federal return is due on June 16, 2025. If you want to file your 2024 Arizona return after April 15, 2025 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, 2025. 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, 2025 even though your federal return will not be due until December 15, 2025. If you file your 2024 Arizona calendar year return after October 15, 2025 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 2024 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 2024. 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. 36

Arizona Form 140NR 17 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 your 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 2024 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 making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. 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. In addition, a sole proprietorship of an Arizona dual licensee that has not elected to operate on a for-profit basis may subtract the portion of income included in federal adjusted gross income that is from the medical marijuana portion of the business. NOTE: A dual licensee that elects to operate on a for-profit basis does not qualify for a subtraction for the medical marijuana portion of their business. I. Americans with Disabilities Act Access Expenditures If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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: x Remove any barriers that prevent a business from being accessible to or usable by individuals with disabilities. x Provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals. x Provide qualified readers, taped texts, and other effective methods of making visually delivered materials available to individuals with visual impairments. x Acquire or modify equipment or devices for individuals with disabilities. x 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 A.R.S. 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. Include the amount of allowable expenses paid or incurred during the tax year. J. Exploration Expenses Deferred Before January 1, 1990 If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. Sole Proprietorship – Marijuana Establishment and Testing Facilities and Dual Licensees that Elect to Operate on a for-profit basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. A Sole Proprietorship or disregarded LLC (dual licensee) that takes the allowable subtraction for the income of an Arizona Nonprofit Medical Marijuana Dispensary (NMMD) under item “H”, cannot take this allowable subtraction”. Enter the total amount of ordinary and necessary expenses related to the sales of recreational use products reported on Arizona Schedule DFE, Disallowed Federal Expense Schedule for Marijuana Establishments, line 16. Include this schedule (after page 6) with your tax return, when filed. Do not include Cost of Goods Sold or any other expenses already allowed to be deducted on your federal return in the total amount of expenses reported on this line. NOTE: Sole Proprietors and disregarded LLCs must contact the Arizona Department of Health Services (ADHS) to make the election to operate on a for-profit basis. 

Arizona Form 140NR 18 L. S corporation Shareholders – Marijuana Establishment, Testing Facilities and Dual Licensees that Elected to Operate on a For-profit Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. Enter the amount of your pro-rata share of ordinary and necessary expenses related to the sales of recreational use products shown on your 120S Schedule K-1(NR), line 20. Do not include Cost of Goods Sold in the total amount of expenses reported on this line. M. Net Capital Gain from the Exchange of One Kind of Legal Tender for Another Kind of Legal Tender If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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 page 5, “K”. 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. N. Virtual Currency and Non-Fungible Tokens If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Airdrop as the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. • Non-fungible tokens (NFT) as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset. • Virtual currency as a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency. • Foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance. O. Gas Fees or Non-Fungible Token Basis If you are making the small business election and this subtraction is directly related to small business income reported on Form 140-SBI, do not take the subtraction on Form 140, enter the subtraction on Form 140-SBI. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. For the purpose of this subtraction, A.R.S. § 43-1028 defines the following: • Gas Fees as a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or an NFT. P. Other Adjustments If you are making the small business election and this subtraction is directly related to small business income reported on Form 140NR-SBI, do not report the subtraction on Form 140NR, enter the subtraction on Form 140NR-SBI. 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. Q. Total Other Subtractions from Arizona Gross Income Add all amounts on page 6 and enter the total on page 2, line 45. Line 46 Subtract lines 43, 44 and 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. 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, you cannot claim this individual for the dependent tax credit on line 59. In this case do not include this person in Box 10b. 

Arizona Form 140NR 19 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: x A person who is age 65 or over (related to you or not) if either of the following applies: 1. In 2024, 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. 2. In 2024, 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, 2025 (born 1/1/1960), that person would be considered to be age 65 at the end of 2024 for federal income tax purposes and likewise for Arizona income tax purposes. x A stillborn child if the following apply: 1. The stillbirth occurred during 2024. 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: x 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; x 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 exemption 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 2024 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 Deductions 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. 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 for 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. 

Arizona Form 140NR 20 Standard Deduction Chart If your filing status is: Your standard deduction prior to prorating is: x Single $14,600 x Married filing joint $29,200 x Married filing separate $14,600 x Head of Household $21,900 NOTE: A surviving spouse shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse. If you and your deceased spouse would have filed a joint tax return for tax year 2024, enter $27,700 on line 1 in the worksheet below. If you and deceased spouse would have filed separate tax returns for tax year 2024, enter $13,850 on line 1 in the worksheet below. 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 33% (.33) of the total amount of a taxpayer’s charitable contributions 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. Line 56 - Tax Amount Multiply line 55 by 2.5% (.025). 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: x $100 for each qualifying dependent who is under 17 years of age at the end of the taxable year. x $25 for each qualifying dependent who is at least 17 years of 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) Credit amount (d) Multiply 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. Table II If your filing status is single, married filing separate, or head of household: is your federal adjusted gross income on page 1, line 25, more than $200,000? Yes No If your filing status is married filing joint: is your federal adjusted gross income on page 1, line 25, more than $400,000? Yes No . 

Arizona Form 140NR 21 x 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. x 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 2024 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……………………………… If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 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 2024 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………………………………. If the difference is greater than $19,000, STOP. You cannot claim the dependent tax credit. $ .00 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 Use Table V to determine the percentage to enter on line 5, of Table III or Table IV.

Table V If the amount on line 3 from Table III or Table IV is: Enter on line 5 If the amount on line 3 from Table III or Table IV is: Enter on line 5 $ 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 NOTE: If you elect to report small business income on Form 140NR-SBI, certain nonrefundable credits must be claimed on the small business tax return. In this case, you must complete Form 301-SBI to claim those credit(s). See the specific credit form and instructions for which credits must be claimed on the small business tax return. Exception: Credit Form 309 is used to claim a tax credit on Form 140NR for taxes paid to other states or country on income not reported on Form 140NR-SBI. Credit Form 309-SBI is used to claim a tax credit for taxes paid on small business income to another state or county. See Form 309-SBI and instructions for more information. 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. 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 60. 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 This credit was repealed for individual taxpayers for tax years beginning from and after December 31, 2021. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 315 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. 

Arizona Form 140NR 22 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 Employing National Guard Members You may qualify for this credit if you are an employer who has an employee who 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 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. lified it. 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 Organizations (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 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. Healthy Forest Production Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 353 to figure this credit. Affordable Housing Tax Credit You may qualify for this tax credit if you meet all of the qualifications or receive a pass- through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 354 to figure this credit. Credit for Entity-Level Income Tax You may qualify for this tax credit if you meet all of the qualifications or receive a pass-through credit from a partnership or S Corporation. All credits that were properly established can be carried forward for the respective five year carry forward period. Use Form 355 to figure this credit. TOTAL CREDITS: Compute your credit on the appropriate form. Then complete Arizona Form 301 and enter the amount from Form 301, Part 2, line 62. 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”. 42

Arizona Form 140NR 23 Totaling Payments and Refundable Credits Line 62 - 2024 Arizona Income Tax Withheld Enter the 2024 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) – 2024 Arizona Estimated Tax Payments Including Amount Applied from 2023 Return; and Arizona Claim of Right Use this line if you did one of the following: x made estimated income tax payments to Arizona for 2024; x applied any of your refund from your 2023 Arizona return to 2024 estimated taxes for Arizona; or x 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 2024 taxes. NOTE: If you are married and made joint Arizona estimated payments for 2024, but are filing separate 2024 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 63b. 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 - 2024 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: x Credit for Increased Research Activities - Individuals, (Form 308-I) x Credit for Motion Picture Production Costs (Form 334) x 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 (Arizona 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 Motion Picture Production Costs (Arizona Form 334) You may qualify for the refundable credit for the motion picture production costs if the credit exceeds your taxable income. Pre-approval and post-approval are required through the ACA to qualify for this credit. For more information about this credit and to determine whether you may claim a refund of this credit, see Arizona Form 334. If you are claiming a refund from Form 334, enter the amount from Form 334, Part 1, line 6. Credit for Qualified Facilities (Arizona 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 following table to figure the amount to enter on line 65. 2024 - Refundable Credit Worksheet 1. Enter the refundable credit from Form 308-I, Part 7, line 38.

2. Enter the refundable credit from Form 334, Part 1, line 6.

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

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



Arizona Form 140NR 24 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 2025 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 69 to 2025, you cannot use that amount to pay any tax that is later found to be due for 2024. You also may not claim a refund for that amount until you file your 2025 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. 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: x Democratic x Libertarian x 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. 

Arizona Form 140NR 25 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. 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 2024 if: Your filing status is: AND Your Arizona gross income for 2023 was greater than: AND Your Arizona gross income for 2024 was greater than: Single $ 75,000 $ 75,000 Married filing Joint $ 150,000 $ 150,000 Married filing Separate $ 75,000 $ 75,000 Head of Household $ 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 2024 if the following apply: 1. You are a calendar year filer. You file your Arizona return by March 1, 2025. 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. Complete Form 822. This form is available at: azdor.gov/forms. Select “Forms” on the home page and click on “See All Forms” then type 822 in the Search box. 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. 

Arizona Form 140NR 26 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? x You will get your refund fast - even faster if you e-file! x Payment is more secure x There is no check to get lost. x It is more convenient. x No trip to the bank to deposit your check. x 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. 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, direct debit through your software vendor 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, Form 140NR 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 2024. 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. 

Arizona Form 140NR 27 Installment Payments If you cannot pay the full amount shown on line 87 when you file, you may request to make monthly installment payments. All payment arrangements for individual income tax can be made online at www.AZTaxes.gov, please select the “Request A Payment Plan” option under the Individual Income section. 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, 2025. 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. Instructions Before Mailing x DO NOT STAPLE YOUR RETURN. DO NOT STAPLE ANY SCHEDULES, DOCUMENTS OR PAYMENT TO YOUR RETURN. DO N. x Make sure your SSN is on your return.n.n x x Be sure you enter your daytime telephone number in the space provided on the front of your return. ne nu n. x Check to make sure that your math is correct. A math error can cause delays in processing your return. ect. A n. x Check the boxes to make sure you filled in all required boxes. x If you requested a filing extension, make sure that you check box 82F (above your name) on page 1 of the return.n. x Sign your return and have your spouse sign, if filing jointly.y.y x x Write your SSN and tax year on the front of your check or money order. Include your payment with your return. . x Do not include correspondence with your return. ur ret n. Mailing Your Return Place pages in the order shown on the last page of these instructions. NOTE: If you are filing Arizona Form 140NR-SBI, DO NOT MAIL THIS RETURN SEPARATELY. Include this return with your Form 140NR in the same envelope. x If you are mailing your return, be sure to include Form 140NR, pages 1 and 2 any other required forms. x Include Form(s) W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R, after the last page of your return only if the form shows Arizona income tax withholding. x If you are mailing your return, make a copy before mailing. Also make a copy of any forms and schedules that you are including with your return. Keep the copies for your records. Be sure that you mail the original and not a copy. x If mailing more than one tax year return, use a separate envelope for each return. Where Should I Mail My Return? If you are not filing Form 140NR-SBI and are including a payment with your Form 140NR 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 If you are filing Form 140NR and Form 140NR-SBI, the department will apply any overpayment from one return to the tax liability shown on the other return. x After applying the overpayment, if there is a net tax due and you are sending a payment mail both returns to Arizona Department of Revenue PO Box 52016 Phoenix, AZ 85072-2016 x After applying the overpayment, if there is a net refund mail both returns 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, 2025. 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 

Arizona Form 140NR 28 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 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 2024 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.



Arizona Form 140NR 29

Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011 2024 Original return 2024 Amended return

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 Form 140NR, line 39, for net long-term capital gain derived from investment in qualified small business……………………………………………………………………. $ 00

3. Enter the amount included on the schedule “Other Subtractions from Income”, page 6, item “M”, for 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 the schedule “Other Additions to Income”, page 5, item “K”, 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 x If the amount on line 7 is positive, you have a net long-term capital gain from assets acquired after December 31, 2011. Enter the amount on Form 140NR, line 37. x If the amount on line 7 is zero or negative, you do not qualify to take the allowable subtraction. Enter “0” on Form 140NR, line 37.

IMPORTANT If you elected to file the Arizona Small Business Income Tax Return (Form 140NR-SBI), only claim the subtraction on this return if the net capital gain to which the subtraction relates was not moved to the Arizona Small Business Income Tax Return. As a nonresident, you may include in your computation only net long-term capital gains from qualifying assets acquired from Arizona sources. x 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. x An asset acquired by gift or inheritance is considered acquired on the date if was acquired by gift-giver or the deceased individual. x 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 your computation.

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

Arizona Form 140NR 30

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. NOTE: If a pass-through entity (PTE) elects to pay income tax at the entity-level on behalf of the individual partner or shareholder and that individual does not OPT OUT of the election, the PTE cannot include that individual partner or shareholder as a member of the nonresident composite return. In this case, the PTE must still meet the requirement to have a minimum of 10 members to file a nonresident composite return. 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 and 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 Multiply line 55 by 2.5% (.025). Enter the aggregate tax due for all members of the composite return. Line 62 – 2024 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 (Box 63a) – 2024 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 (box 63a) if the filing entity did any of the following: x Made estimated income tax payments to Arizona for 2024. x Applied any of the refund from the 2022 Arizona composite nonresident return to 2024 estimated taxes for Arizona. Line 63c Enter the amount from box 63a. Line 64 - 2024 Extension Payment (Form 204) Complete line 64 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 63c 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 2025 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.



Arizona Form 140NR 31

NOTE: If the entity applies any of the amount shown on line 68 to the 2025 composite return, the entity cannot use that amount to pay any tax that is later found to be due for 2024. The entity also may not claim a refund for that amount until the entity files its 2025 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. 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? x The entity will get its refund fast x Payment is more secure - there is no check to get lost. x It is more convenient - no trip to the bank to deposit the check. x 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 24 and 25. 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 2024. There is no fee to use this method. To make an electronic payment, go to www.AZTaxes.gov. Select 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.



Arizona Form 140NR 32 2024 Form 140NR Assembly Order (form sequence) For returns mailed to the Department To avoid processing delays, place the returns in the following order Forms W-2, W-2G, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-NEC, 1099-MISC and 1099-R Copy of other State or Country tax return (if claiming Credit 309 and/or 309-SBI) AZ Claim of Right - IND AZ Schedule A(NR) (if adjusting federal Schedule A) Copy of 1040 Federal Schedule A (if itemizing deductions) Credit Forms 308-I, 334, 349 (if claiming these credits) Form 301 and all credit forms reported on Form 301 Only include those forms showing Arizona income tax withholding. Form 131 (if claiming a refund on behalf of a deceased taxpayer) AZ Schedule DFE (if reporting subtraction on Form 140NR, page 6) Form 140NR – pages 5 and/or 6 (if completed) Form 140NR – page 3 and 4 (if completed) Form 140NR – pages 1 and 2 Form 301-SBI and all credit forms reported on Form 301-SBI Form131-SBI (if claiming a refund on behalf of a deceased taxpayer) Form 140NR-SBI (if filing) Form 203 (if filing) 

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 when you file your state and federal taxes.

Tax Year 2024 Federal Earned Income Tax Credit Eligibility Table Number of Qualifying Children Earned Income (less than) Maximum Credit 0* $18,591 ($25,511 if MFJ) $632 1 $49,084 ($56,004 if MFJ) $4,213 2 $55,768 ($62,688 if MFJ) $6,960 3 or more $59,899 ($66,819 if MFJ) $7,830 *your age 25 - 64 MFJ = Married Filed Jointly

Tax Year 2024 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 2024 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! y Save for a House y Save for a Car y Save for a College Education

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DO YOU QUALIFY FOR AN ARIZONA TAXCREDIT? 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 Up to $100 per household your federal adjusted gross income was $ 25,000 or less ($12,500 ifsingle) you were not sentenced for at least 60 days of 2024 to a county, state or federal prison Before using paper, E-File and select the Direct Deposit option for a faster refund! Be sure to use www.azdor.gov to access your preferred software vendor to ensure free filing for your federal and state returns. Do-It-Yourself with fillable forms. Go to our website at www.azdor.gov and click on E-file Your Taxes for Free found in the Individual box. You may qualify to file your federal and Arizona individual income returns for FREE!! Free federal and state tax preparation for taxpayers who are: x Elderly x Americans with disabilities x Low income For locations, call 211 or go to www.211arizona.org

CONTENTS 140NR CREDITS Credits from Form 301 ............ 41 Credit for taxes paid to another state or country .......... 41 DEDUCTIONS Itemized deductions ................ 39 Standard deduction ................. 39 EXEMPTIONS Age 65 or over ....................... 12 Blind ....................................... 12 Dependents .............................. 13 FILING INFORMATION Do you have to file ................... 7 Estimated tax ........................... 10 Filing extensions ...................... 9 Penalties and interest .............. 9-10 When to file .............................. 9 Mailing your return ............... 47 FILING STATUS All filing statuses ..................... 11-12 INCOME Additions to income ................ 15 Federal adjusted gross income 15 Subtractions from income ...... 19 ARIZONA DEPARTMENT OF REVENUE 1600 W MONROE ST. PHOENIX AZ 85007-2612 QUICK AND EASY ACCESS TO TAX HELP AND FORMS Reasonable accommodations for any person with a disability can be made. PERSONAL COMPUTER Access all the information you need online at www.azdor.gov, including: • Forms and Instructions • Publications • Tax Rulings and Procedures • Other General Tax Information WALK-IN SERVICE You may get forms and information at our Phoenix and Tucson offices. Visit azdor.gov for taxpayer support services that may be accessed by phone or computer. We have offices at the following locations: Phoenix 1600 West Monroe Street Phoenix, AZ 85007 Tucson 400 West Congress Street Tucson, AZ 85701 Forms Only: Mesa 55 North Center Street Mesa, AZ 85201 PHONE Phoenix................................ (602) 255-3381 Toll-free from area codes 520 and 928 ...... (800) 352-4090 Did You Know? When you use tax software all the hard work is done 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 • Free E-File available for those who qualify Before using paper, E-File and select the Direct Deposit option for a faster refund! PREPARING YOUR RETURN • Ensure all the necessary lines, amounts, and forms are filled out properly. Check to make sure that calculations on your return are correct as a math error can cause delays in processing your return. • Double check spelling of names. Avoid using two different names. • Make sure that you legibly write your complete 9-digit Social Security Number (SSN) on your return. Without proper identification, the Arizona Department of Revenue (ADOR) is unable to process the return. • Write clearly or use fillable forms. Handwriting can easily be mistaken and mis-typed into ADOR systems. • Enter your routing number or account number correctly in all appropriate boxes. You are responsible for this information. • Send payment with the correct return. Send the Arizona Department of Revenue payments with the state return to ADOR and the IRS payment with the federal return to the IRS. The IRS is the federal government entity and ADOR is the state government. The IRS will not process your state return for ADOR. IRS will likely process checks paid to ADOR into the federal account, but will not transfer to the state account. • If you are filing a joint return, enter the SSNs in the same order every year. SUBMITTING YOUR RETURN • Sign and date the return. • Do not staple any items to the return. • Make sure you use correct postage on the envelope. • Ensure all pages are sent in together as ADOR will not process partial returns. • Include your check or money order with your return. Please do not send cash. • Include a voucher with the payment if not sending it with the return. ADOR spends time researching and connecting the payment to an account if no return or voucher is included delaying the return process. • All envelopes should be addressed to Arizona Department of Revenue then add the PO Box for the area you wish to reach. • By law, ADOR must offset any refunds to certain government agencies that have a claim against you. If you received a letter informing you of the offset, please contact the agency listed in the letter. • Please allow 8-10 weeks for processing. Do not resubmit a return or submit an electronic payment if you mailed a paper check. • Payments are one of the last items to be processed. The postmark date is used to determine if income payments and returns are timely.