Arizona State Tax Return for TY2015

Same –sex married couples For Federal purposes Rul provides that the IRS will recognize same-sex marriages that were validly entered into in a state whose laws authorize it. They may file with status married joint or separate. The AZ constitution does now recognize this union and therefore persons of a same-sex marriage can file an AZ income tax return using filing status married joint or separate.

Defense Of Marriage Act - DOMA AARP does have to prepare a MFJ Federal return for a same sex marriage couple AZ action for same sex marriage couple: Prepare a joint Federal return Complete AZ return

Arizona Filing Requirements 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 Income

Taxation of Native Americans

Interest & Dividend Payments Not included in Arizona income even if the bank is located off the reservation. Per Capita Payments (payments to Native Americans by their tribe) Not taxable if living on the reservation. Per Capita Payments to Dependents Not taxable for Dependents living temporarily off the reservation, such as students at college, if the dependent’s parents live on the reservation, and the dependent’s home is located on that reservation. Gambling Winnings Not included in Arizona income if the casino is on the tribal member’s reservation, the tribe owns the casino, and the tribal member lives on the reservation.

Arizona Filing Status

Standard Deduction Indexed for Inflation Single or married filing separate - 5,091 MFJ or HH - $10,173

Schedule A Itemized Deduction Adjustments You must complete Form 140, Schedule A, ONLY if any of the following items apply: Deducting medical/dental expenses Claiming a Federal Credit – form 8396 – for interest paid on Mortgage Credit Certificates Deducting gambling losses while taking a subtraction for AZ Lottery winnings Claimed deductions on the Federal Sch A of expenses related to income not subject to AZ tax Claiming an AZ Credit for any amount allowed as a charitable contribution

Personal Exemption Chart Filing statusExemption 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

Personal Exemption of Children Claimed as Dependents

Arizona Personal Exemptions

Qualifying Ancestor Exemption

Additions to Federal Adjusted Gross Income Line 13 - Non-Arizona Municipal Interest – flows from Federal return Line 14 - Partnership Income (from Arizona K1) Line 15 - Total Federal Depreciation - OOS Line 16 - Other additions to income

Additions to Federal Adjusted Gross Income Line 16 - Other Additions to Income A. Married Persons Filing Separate Returns – include one half of the community income B. Fiduciary Adjustment C. Ordinary Income Portion of Lump-Sum Distribution Excl. on Fed Return D. Items Previously Deducted for Arizona Purposes E. Claim of Right Adjustment for Amounts Repaid in 2015 F. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years G. Addition to S Corporation Income Due to Credits Claimed H. Solar Hot Water Heating Plumbing Stub Out and Electric Vehicle Recharge Outlet Expenses I. Wage Expense for Employers of TANF Recipients J. Motion Picture Production Expenses K. Adjusted Basis in Property L. Non-qualified Withdrawals from 529 College Savings Plans M. Original Issue Discount N. Arizona LongTerm Health Care Savings Account Withdrawals O. Sole Proprietorship Loss (Medical Marijuana Dispensary). P. Federal Net Operating Loss (NOL) Carryforward from Non-Arizona sources while a nonresident Q. Federal Capital loss Carryforward from Non-Arizona sources while a nonresident. R. More Adjustments

Subtractions from Federal Adjusted Gross Income

Line 35 - Other Subtractions from Income A. Fiduciary Adjustment B. Federally Taxable Arizona Municipal Interest C. Adoption Expenses D. Qualified Wood Stove, Wood Fireplace, or Gas Fired Fireplace E. Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years F. Certain Expenses Not Allowed for Federal Purposes G. Qualified State Tuition Program Distributions H. Subtraction for World War II Victims I. Installment Sale Income from Another State Taxed by the Other State in a Prior Taxable Year J. Agricultural Crops Given to Arizona Charities K. Basis Adjustment for Property Sold or Otherwise Disposed of During the Taxable Year L. Previously deferred discharge of Indebtedness M. OID N. Sole Proprietorship Income of Medical Marijuana Dispensary O. Long Term Care Insurance premiums P. Long Term Health care Savings Accounts Q. Other Subtractions

Subtraction for Long-Term Care Insurance Premiums Beginning in 2013, you may subtract the amount of qualifying premium costs for long-term care insurance only if you are not claiming itemized deductions.

Subtraction for AZ Long-Term Health Care Savings Accounts Beginning in 2013, you may subtract amounts you paid into long-term health care savings account established under AZ law

Subtraction for 529 College Savings Plans Increases for 2013 Single or HH - $2,000 MFJ - $4,000

Subtraction for Net Long-Term Capital Gains Beginning in 2013, you may take a subtraction from AZ gross income for a percentage of any net long-term capital gain included in AGI derived from assets acquired after 12/31/11 Complete a worksheet included in the tax form to take this subtraction

Unpaid Arizona Use Tax

Selected Tax Credits Credit TypeForm Single Max MFJ Max Credit recapture form Form 301 Taxes paid to another state or country on the same income Form 309 Contributions to Qualifying Charitable Organizations (formerly Working Poor) Form 321 $400$800 Contributions Made or Fees Paid to Public Schools Form 322 $200$400 Contributions to Private School Tuition Organizations Form 323 $535$1070 Credit for Contributions to Military Family Relief Fund Form 340 $200$400 Credit for Qualified Health Insurance Plans Form 347 $0 Contributions to Certified School Tuition Organizations Form 348 $532$1064

Arizona Form 301 ● Form 301 is only a Recapture of all the Nonrefundable Credits

Arizona Form 309 Arizona residents are allowed a credit to income taxes paid to another state or country if : 1.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 regardless of your residence. 2.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 other state or country. 3.The other state or country return must be attached. If not required, proof of the withholding must be attached. As an Arizona resident, nonresident returns filed with the following states qualify for the credit: Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota*, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, West Virginia and Wisconsin.

Arizona Form 321

Arizona Form 322

Extra curricular activities may include: use of band uniforms use of equipment or uniforms for varsity athletics use of scientific laboratory equipment or materials in state or out-of-state trips that are solely for competitive events All day kindergarten a nongovernmental school a pre-school a community college a university a public school located outside of Arizona

Arizona Form 323

Arizona Form 340

Arizona Form 348

140 PTC Resident for entire year 65 or older by 12/31/2015 or received SSI Title 16 Total household income < $3,751 if you lived alone or <$5,501 if others lived with you You paid property tax or rent on your main home You must attach form 201 if a renter and/or Proof of tax paid if an owner

Form 140ET Credit for increased excise tax Arizona resident during 2015 Not claimed as a dependent Not sentenced to prison for > 59 days of 2015 Federal AGI $25,000 or less if MFJ or HOH $12,500 or less if single $12,500 or less if MFS