Arizona State Arizona State Tax Return Tax Return

20122012

Gina KritchevskyGina Kritchevsky11/13/201211/13/2012

Arizona Intake Sheet

Arizona Intake Sheet (Cont.)

Arizona Tax ReturnArizona Tax Return

Arizona Filing Arizona Filing Requirements Requirements

Federal Adjusted Income Federal Adjusted Income Determining Your Arizona Determining Your Arizona

Filing Status Filing Status Dependents Dependents Qualifying Parents and Qualifying Parents and

Ancestors of Your Parents Ancestors of Your Parents Personal Exemption Chart Personal Exemption Chart Standard Deduction Chart Standard Deduction Chart Dependent Exemption Dependent Exemption

Chart Chart

Additions to Federal Additions to Federal Adjusted Gross Income Adjusted Gross Income

Unpaid Use TaxUnpaid Use Tax Subtractions from Subtractions from

Federal Adjusted Gross Federal Adjusted Gross Income Income

Tax Credits, ET, PTCTax Credits, ET, PTC Arizona Form 321 Arizona Form 321 Arizona Form 322 Arizona Form 322 Arizona Form 323Arizona Form 323 Arizona Form 309 Arizona Form 309 Taxation of Native Taxation of Native

Americans Americans

Arizona Filing Arizona Filing RequirementsRequirements

You must file if you are:

AND your Arizona adjusted gross income is at least:

OR your gross income is at least:

Single $5,500 $15,000

Married filing jointly $11,000 $15,000

Married filing separately

$5,500 $15,000

Head of Household $5,500 $15,000

Arizona IncomeArizona Income

Arizona Filing StatusArizona Filing Status

Personal Exemption of Personal Exemption of Children Children

Claimed as Dependents Claimed as Dependents

Arizona Personal ExemptionsArizona Personal Exemptions

Qualifying Ancestor Qualifying Ancestor Exemption Exemption

Qualifying Ancestor Qualifying Ancestor Exemption Exemption

Lines A3a and A3b & Lines A3a and A3b & A4A4

AZ140 Page 2

Personal Exemption Personal Exemption ChartChart

Filing status Exemption Amount

Single $2,100

Married filing jointly $4,200

Married filing jointly with dependents

$6,300

Head of Household – not married

$4,200

Head of Household – married $3,150

Married filing separately – no dependents

$2,100

Married filing separately – dependents

$3,150

Unpaid Arizona Use Unpaid Arizona Use TaxTax

Additions to Federal Additions to Federal Adjusted Gross IncomeAdjusted Gross Income

Line B6 - Non-Arizona Municipal InterestLine B6 - Non-Arizona Municipal Interest

Line B7 - Early Withdrawal of Arizona State, County, Line B7 - Early Withdrawal of Arizona State, County, City or School Retirement System ContributionsCity or School Retirement System Contributions

Line B8 - Ordinary Income Portion of Lump Sum Line B8 - Ordinary Income Portion of Lump Sum Distribution Excluded on the Federal ReturnDistribution Excluded on the Federal Return

Line B9 - Total Federal DepreciationLine B9 - Total Federal Depreciation

Line B10 - Medical Savings Account (MSA) Distributions Line B10 - Medical Savings Account (MSA) Distributions Withdrew Funds from MSA for Non Qualified Withdrew Funds from MSA for Non Qualified

Expenses Expenses Named Beneficiary is Not the Named Beneficiary is Not the Decedent’s Surviving Spouse Decedent’s Surviving Spouse Decedent’s Final Decedent’s Final Return and No Named MSA BeneficiaryReturn and No Named MSA Beneficiary

AZ140 Page 2

Subtractions from Subtractions from Federal Adjusted Gross Federal Adjusted Gross

IncomeIncome Line C14 - Exemption: Age 65 or OverLine C14 - Exemption: Age 65 or Over

Line C15 - Exemption: BlindLine C15 - Exemption: Blind

Line C16 - Exemption: DependentsLine C16 - Exemption: Dependents

Line C17 - Exemption: Qualifying Parents and AncestorsLine C17 - Exemption: Qualifying Parents and Ancestors

Line C19 - Interest on U.S. ObligationsLine C19 - Interest on U.S. Obligations

Line C20 - Exclusion for U.S. Government, Arizona State or Local Line C20 - Exclusion for U.S. Government, Arizona State or Local Government PensionsGovernment Pensions

Line C21 - Arizona Lottery WinningsLine C21 - Arizona Lottery Winnings

Line C22 - Social Security Benefits or Railroad Retirement BenefitsLine C22 - Social Security Benefits or Railroad Retirement Benefits

Line C23 - Recalculated Arizona DepreciationLine C23 - Recalculated Arizona Depreciation

Line C24 - Certain Wages of American IndiansLine C24 - Certain Wages of American Indians

Line C25 - Income Tax Refund from Other StatesLine C25 - Income Tax Refund from Other States Line C26 - Deposits and Employer Contributions to MSAsLine C26 - Deposits and Employer Contributions to MSAs Line C27 - Construction of an Energy Efficient ResidenceLine C27 - Construction of an Energy Efficient Residence Line C28 – Compensation Received for Active Service as a Member of Line C28 – Compensation Received for Active Service as a Member of

the Reserves, National Guard or the U.S. Armed Forcesthe Reserves, National Guard or the U.S. Armed Forces

AZ140 Page 2

Selected Tax CreditsSelected Tax Credits

Credit Type Form Single Max

MFJ Max

Credit recapture form Form 301

Taxes paid to another state or country Form 309

Contributions to Charities that provide assistance to the Working Poor

Form 321

$200 $400

Contributions Made or Fees Paid to Public Schools

Form 322

$200 $400

Contributions to Private School Tuition Organizations

Form 323

$503 $1,006

Credit for Contributions to Military Family Relief Fund

Form 340

$200 $400

Credit for Qualified Health Insurance Plans

Form 347

Contributions to Certified School Tuition Organizations

Form 348

$500 $1,000

Arizona Form 321Arizona Form 321

AZ Form 321

Arizona Form 301Arizona Form 301

Form 301 is only a Recapture of Form 301 is only a Recapture of all the Nonrefundable Creditsall the Nonrefundable Credits

Arizona Form 322Arizona Form 322

Arizona Form 322Arizona Form 322

Extra curricular Extra curricular activities may include:activities may include:

use of band uniformsuse of band uniforms use of equipment or use of equipment or

uniforms for varsity uniforms for varsity athleticsathletics

use of scientific use of scientific laboratory equipment laboratory equipment or materialsor materials

in state or out-of-state in state or out-of-state trips that are solely for trips that are solely for competitive events.competitive events.

a nongovernmental a nongovernmental schoolschool

a pre-schoola pre-school a community collegea community college a universitya university a public school located a public school located

outside of Arizonaoutside of Arizona

AZ Form 322

Arizona Form 323Arizona Form 323

AZ Form 323

Arizona Form 347Arizona Form 347

Arizona Form 340Arizona Form 340

Arizona Form 348Arizona Form 348

Arizona Form 309Arizona Form 309

Arizona residents are allowed a credit income Arizona residents are allowed a credit income taxes paid to another state or country if :taxes paid to another state or country if :

1.1. The income taxed in Arizona is derived from sources within another The income taxed in Arizona is derived from sources within another state or country that is subject to tax in the other state or country state or country that is subject to tax in the other state or country regardless of your residence. regardless of your residence.

2.2. The other state or country does not allow Arizona residents a credit The other state or country does not allow Arizona residents a credit for taxes imposed on income subject to tax in both Arizona and the for taxes imposed on income subject to tax in both Arizona and the other state or country. other state or country.

As an Arizona resident, As an Arizona resident, nonresident returns filed nonresident returns filed with the following states qualify for the credit: with the following states qualify for the credit:

Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota*, Mississippi, Missouri, Massachusetts, Michigan, Minnesota*, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, West Virginia and Wisconsin. Island, South Carolina, Utah, Vermont, West Virginia and Wisconsin.

Other CreditsOther Credits

Family income tax credit,Family income tax credit,

Property tax credit,Property tax credit,

Credit for increased excise taxes,Credit for increased excise taxes,

Clean Elections Fund tax credit has been Clean Elections Fund tax credit has been repealedrepealed

140 PTC140 PTC

Resident for entire yearResident for entire year

65 or older by 12/31/2012 or received SSI Title 1665 or older by 12/31/2012 or received SSI Title 16

Total household income < $3,751 if you lived Total household income < $3,751 if you lived alone or alone or <$5,501 if others lived with you<$5,501 if others lived with you

You Paid property tax or rent on your main homeYou Paid property tax or rent on your main home

You must attach form 201 if a renter andYou must attach form 201 if a renter and

Proof of tax paid if an ownerProof of tax paid if an owner

Form 140ETForm 140ET

Credit for increased excise taxCredit for increased excise tax Arizona resident during 2012Arizona resident during 2012 Not claimed as a dependentNot claimed as a dependent Not sentenced to prison for > 59 days of Not sentenced to prison for > 59 days of

20122012 Federal AGI Federal AGI

$25,000 or less if MFJ or HOH$25,000 or less if MFJ or HOH $12,500 or less if single$12,500 or less if single $12,500 or less if MFS$12,500 or less if MFS

Family Income Tax Family Income Tax CreditCredit

A “non refundable” creditA “non refundable” credit

Taxation of Native Taxation of Native AmericansAmericans

Taxation of Native Taxation of Native AmericansAmericans

Interest & Dividend PaymentsInterest & Dividend PaymentsNot included in Arizona income even if the bank is Not included in Arizona income even if the bank is

located off the reservation. located off the reservation.

Per Capita PaymentsPer Capita PaymentsNot taxable if living on the reservation. Not taxable if living on the reservation.

Per Capita Payments to DependentsPer Capita Payments to DependentsNot taxable for Dependents living temporarily off Not taxable for Dependents living temporarily off

the reservation, such as students at college, if the the reservation, such as students at college, if the dependent’s parents live on the reservation, and the dependent’s parents live on the reservation, and the dependent’s home is located on that reservation.dependent’s home is located on that reservation.

Gambling WinningsGambling WinningsNot included in Arizona income if the casino is on Not included in Arizona income if the casino is on

the tribal member’s reservation, the tribe owns the the tribal member’s reservation, the tribe owns the casino, and the tribal member lives on the reservation. casino, and the tribal member lives on the reservation.

Clean Elections Fund Tax Reduction

RepealedThe $5 ($10 MFJ) designated for

the Clean Elections Fund has been repealed.

Tax Treatment of Income or Loss from a Qualified Nonprofit

Mediacal Marijuna Dispensaries

For taxpayers who are registered as an Arizona sole proprietorship with the Arizona Department of Health Services to operation in Arizona as a nonprofit medical marijuana dispensary, a subtraction is allowed for income from the dispensary that is included in the computation of the taxpayer’s federal adjusted gross income. However, fi the dispensary had a loss that is included in the computation of the federal adjusted gross income, the taxpayer must add back the amount of the loss.