Arizona Form 140ET – Credit for Increased Excise Taxes
Last reviewed: 2025-11-16
Use the Arizona Tax Form Calculator Form 140ET: Arizona Credit for Increased Excise Taxes as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Arizona state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Arizona Form 140ET allows eligible taxpayers to claim the Credit for Increased Excise Taxes, a refundable credit designed to offset the impact of higher excise taxes on essential goods. Because excise taxes disproportionately affect low-income households, this credit ensures a level of relief for those with limited income. Unlike many Arizona credits, Form 140ET is fully refundable, meaning taxpayers can receive the credit even if they owe no income tax. Eligibility is based on filing status, total household income, and the number of qualifying household members.
The form is intentionally simple and consists of an income limit check and a per-person refundable credit calculation. Arizona caps the credit at a fixed dollar amount per household member, up to a maximum of five people. Households exceeding the income limit for their filing status are not eligible to claim the credit.
Eligibility Requirements
Form 140ET determines eligibility using three core inputs:
- Filing Status – Income limits differ for single taxpayers and married couples filing jointly.
- Household Income – Your total income for the year must not exceed the limit set by the Arizona Department of Revenue.
- Number of Qualifying Household Members – You may claim up to five qualifying individuals. Each eligible person contributes an equal amount to the final credit.
Once eligibility is confirmed, the refundable credit equals the number of qualifying household members multiplied by Arizona’s fixed per-person credit amount. If household income exceeds the threshold, the credit is automatically zero.
| This form is informational only. Arizona Form 140ET provides a refundable credit for low-income households to offset increased excise taxes. You may claim the credit only if your household income is below the limit for your filing status. | ||
| 1 | Filing Status | |
| 2 | Household income for the year | |
| 3 | Number of qualifying household members (maximum 5) | |
| 4 | Income limit based on filing status | |
| 5 | Eligible? (1 = Yes, 0 = No) | |
| 6 | Credit calculation: 100 × number of qualifying persons | |
| 7 | Refundable credit (if ineligible, enter 0) | |
Understanding the Credit
The Arizona Credit for Increased Excise Taxes is intended to provide relief to households most affected by higher consumption-based taxes. Because excise taxes apply uniformly regardless of income level, low-income taxpayers often experience a disproportionately higher burden. The refundable nature of Form 140ET helps counteract this imbalance by returning money directly to eligible households.
For qualifying individuals, the credit can be meaningful, especially for households with multiple members. The calculation is straightforward, and the credit does not require itemized deductions, receipts, or additional worksheets. Most taxpayers can determine eligibility in less than a minute using the calculator version of this form.
Last reviewed: 2025-11-16: If you believe this form requires an update, please contact us.
Additional Resources
- Arizona Department of Revenue
- Arizona Form 140 – Resident Income Tax Return
- Arizona Form 140A – Short Form
- Arizona Form 140EZ – EZ Form
- Arizona Form 140PTC – Property Tax Credit
Review Form 140ET each year to confirm the latest income limits and credit rules, as small annual adjustments may apply. Because this credit is refundable, it remains valuable even for taxpayers with zero tax liability.
Quick Access Tools
Frequently Asked Questions
What documentation do I need to support a claim on Form 140PTC?
Taxpayers should maintain records verifying rent paid or property taxes assessed and paid. Homeowners must keep county property tax statements, while renters should obtain receipts or landlord statements itemizing rent amounts per month. Arizona may request verification during processing, especially when the credit claimed is high relative to income. Taxpayers who receive SSI or other benefits should also retain award letters proving eligibility. Additional explanation and examples for documentation appear on the reference page for AZ-140PTC.
Project next year’s take-home in Arizona?
Switch the year in the calculator; rates/thresholds update automatically.
Do charitable contributions affect Schedule A(NR) differently for nonresidents?
Charitable contributions reported on Schedule A(NR) are included as part of total itemized deductions before applying the Arizona nonresident ratio. This differs from resident forms such as the 140, where charitable contributions may also influence the standard deduction increase worksheet. Nonresidents do not receive the separate charitable increase because Form 140NR applies the ratio instead. Taxpayers wanting to compare outcomes between itemizing and taking the standard deduction can do so using the Arizona nonresident calculator at Form 140NR.
What if I live in Arizona but work in another state?
The work state may tax those wages. Claim a credit on your Arizona return where eligible. Model it in the full calculator.
Can taxpayers claim both the Arizona and federal foreign tax credits?
Yes, Arizona residents may claim both, but they must coordinate claims carefully. If a taxpayer takes a foreign tax deduction on their federal return instead of a federal credit, Arizona generally requires them to reverse that deduction before applying the Arizona credit. Likewise, if the foreign tax is refunded after filing, both federal and Arizona returns may require amendments. For step-by-step examples, see the guidance linked on the AZ-309 calculator page.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.