Form 140NR print requirements
To calculate Arizona Form 140NR, Nonresident Personal Income Tax Return the following conditions must be met:
- There are no deceased members included.
- All members included in the composite return have the same tax year for income tax purposes.
- Members included in the composite return are nonresidents of the state for the full taxable year.
- Members included in the composite return have no income from sources within the state, other than his/her distributive share of corporate income allocable to Arizona.
- the return includes ten or more participating members.
The following limitations and conditions apply to those members included in the composite return:
- Only the standard deduction in lieu of itemized deductions are allowed.
- No tax credits are allowed.
- No net operating losses are allowed.
- An entity can file a composite return on behalf of some or all eligible members, but you need at least 10 participating members.
- Refunds from overpayments on a composite return need to go to the organization for distribution to the members.
- Those who need to make Arizona estimated tax payments don't qualify to participate in a composite return, regardless if it's voluntary or required. Only the entity filing the composite return can make voluntary estimated payments on behalf of the participating members. Those estimates must submit payments with Arizona Form 140ES under the entity's EIN.
- A composite return cannot be returned or corrected except by an amended composite return filed by the entity.
Data entry
To elect an Arizona composite return:
- Go to tab.
- ForReturn/Entity Type, select1120S – S Corporationfrom theReturn typedropdown.
- Go to . Verify there are 10 or more nonresident shareholders.
- Go to . Make sure there's an amount entered on Line 25.
- Form 140NR has been redeveloped to follow Arizona ruling TLR 16-2. Page 1 doesn’t populate or print and must be attached as a PDF in the return.
- Go to . Review the note: "Any other forms/schedules not listed here that you want included in the e-file must be attached (as a binary attachment) to the state return."
- Do a full recompute and generate the print.
