Arizona Form 140PY – Part-Year Resident Income Tax Return
Last reviewed: 2025-11-16
Use the Arizona Tax Form Calculator Form 140PY: Arizona Part-Year Resident Income Tax Return 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 140PY is the official income tax return for individuals who were Arizona residents for only part of the year. This includes people who moved into Arizona, moved out of Arizona, or were otherwise considered residents for only a portion of the tax year. Form 140PY ensures that taxpayers pay Arizona tax only on the income earned during their Arizona residency period, while still requiring federal income components to calculate accurate prorated deductions, exemptions and credits.
Unlike the full-year resident return (Form 140) or the nonresident return (Form 140NR), the part-year return must distinguish income earned while a resident from income earned outside that period. The form includes sections for federal adjusted gross income, Arizona adjustments, Arizona-source income during residency, a required part-year allocation ratio, exemptions, standard deductions, charitable contribution increases, tax calculations, credits, payments and final balances due or refundable. The 140PY design ensures fair taxation by applying proration rules that match the taxpayer’s actual time spent as a resident.
How Arizona Form 140PY Works
Form 140PY follows a structured sequence to compute a part-year resident’s Arizona tax obligation. Each line aligns with Arizona’s residency and sourcing rules, ensuring income is taxed appropriately. Key components include:
- Federal adjusted gross income (AGI): This baseline value (line 6) is used for prorating deductions and exemptions.
- Arizona income earned during the resident period: Wages, pensions, tips, business income and other items earned while residing in Arizona appear on line 7.
- Additions and subtractions: Line 8 and line 9 adjust federal AGI to determine part-year Arizona-modifed income.
- Adjusted federal income for the part-year period: Line 10 combines federal AGI and adjustments.
- Arizona adjusted income: Line 12 modifies resident-period income for additions and subtractions.
- Part-year allocation ratio: Line 13 divides Arizona income by federal adjusted income, capped at 1.00. This ratio prorates exemptions and deductions for the residency portion.
- Exemptions and prorated values: Lines 14–19 apply age 65, blind and dependent exemptions, then prorate them using the allocation ratio.
- Standard deductions and charitable contribution increases: Arizona fixed deduction values apply, plus an increase equal to 33% of qualifying charitable contributions.
- Tax computation: The flat Arizona tax rate (2.5%) applies to taxable income on line 24.
- Credits and payments: Dependent credits, family income tax credits, withholding, estimated payments and refundable credits reduce the tax owed.
- Final balance or refund: Lines 37–45 determine tax due, overpayment, refund and penalties.
This calculator replicates every 140PY line and worksheet, allowing taxpayers to generate a complete and accurate return aligned with Arizona Department of Revenue rules.
| Filing Status | ||
| 6 | Federal adjusted gross income (Form 1040, line 11) | |
| 7 | Income for part-year resident period — Arizona wages, pensions, etc. | |
| 8 | Additions to income | |
| 9 | Subtractions from income | |
| 10 | Adjusted federal income for part-year resident period (line 6 + line 8 − line 9) | |
| 11 | Arizona-source income (during resident period) | |
| 12 | Arizona adjusted income (subtract line 9 from line 7 then add line 8) | |
| 13 | Part-year allocation ratio: Divide line 11 by line 10 (cannot exceed 1.00) | |
| 14 | Age 65 or over exemptions (# claimed) | |
| 15 | Blind exemptions (# claimed) | |
| 16a | Dependents under age 17 | |
| 16b | Dependents age 17 and over | |
| 17 | Qualifying parents and grandparents | |
| 18 | Total exemptions before ratio | |
| 19 | Prorated exemptions: Multiply line 18 by line 13 | |
| 20 | Arizona adjusted income: Subtract line 19 from line 12 (min 0) | |
| 21 | Standard deduction | |
| 22 | Standard deduction increase (charitable contributions × 0.33) | |
| 23 | Subtract lines 21 and 22 from line 20 | |
| 24 | Arizona taxable income: Enter amount from line 23 | |
| 25 | Tax: Multiply line 24 by 2.5% | |
| 26 | Recapture of credits | |
| 27 | Subtotal tax: Add lines 25 and 26 | |
| 28 | Dependent tax credit | |
| 29 | Family income tax credit | |
| 30 | Nonrefundable credits | |
| 31 | Balance of tax: Subtract lines 28–30 from line 27 (min 0) | |
| 32a | Arizona withholding from Form(s) W-2 | |
| 32b | Arizona withholding from Form(s) 1099 | |
| 32c | Total Arizona withholding: Add lines 32a and 32b | |
| 33 | Arizona estimated tax payments | |
| 34 | Refundable credits | |
| 35 | Payment made with extension (Form 204) | |
| 36 | Total payments: Add lines 32c, 33, 34, and 35 | |
| 37 | Tax due: Subtract line 36 from line 31 (min 0) | |
| 38 | Overpayment: Subtract line 31 from line 36 (min 0) | |
| 39 | Amount of line 38 to apply to 2025 estimated tax | |
| 40 | Refund: Subtract line 39 from line 38 | |
| 41 | Penalty for late filing/late payment | |
| 42 | Interest for late payment | |
| 43 | Estimated tax underpayment penalty | |
| 44 | Total penalties and interest: Add lines 41–43 | |
| 45 | Balance due: Add line 37 and line 44 | |
| Voluntary Gifts to Arizona Programs | ||
|---|---|---|
| G1 | Aid to Education Fund | |
| G2 | Arizona Wildlife Fund | |
| G3 | Special Olympics Arizona Fund | |
| G4 | Domestic Violence Shelter Fund | |
| G5 | Political Gift Fund | |
| G6 | Underprivileged Medical Support Fund | |
| G7 | Veterans’ Donations Fund | |
| G8 | Family Support for Injured or Fallen Law Enforcement | |
| G9 | Special Education Fund | |
| G10 | Spaying and Neutering of Animals Fund | |
| G11 | Child Crisis Prevention & Foster Support | |
| G12 | Literacy and Education Development Fund | |
| G13 | Neonatal Intensive Care Support Fund | |
| G14 | Arizona Homeless Housing & Shelter Fund | |
| G15 | Veteran Suicide Awareness & Prevention Fund | |
| G16 | Arizona Military Family Relief Support | |
| GTotal | Total voluntary gifts (add G1–G16) | |
| Standard Deduction Increase Worksheet | ||
| SD1 | Total qualifying charitable contributions | |
| SD2 | Increase amount (multiply SD1 by 0.33) | |
| Dependent Tax Credit Worksheet | ||
| DW1 | Dependents under age 17 | |
| DW2 | Multiply line DW1 by $100 | |
| DW3 | Dependents age 17 and over | |
| DW4 | Multiply line DW3 by $25 | |
| DW5 | Total dependent credit (DW2 + DW4) | |
| Exemption Worksheet | ||
| EW1 | Age 65 exemptions (#) | |
| EW2 | Blind exemptions (#) | |
| EW3 | Other exemptions (#) | |
| EW4 | Parents/Grandparents exemptions (#) | |
| EW5 | Total exemption amount before ratio | |
Arizona Part-Year Residency Rules
Arizona taxes individuals based on their residency status and the income they earn while residing in the state. A person is a Part-Year Resident if they moved into or out of Arizona during the year, meaning part of their income is taxable to Arizona and part is not. Form 140PY applies proration to ensure only the applicable portion of income, deductions and exemptions apply.
Arizona usually taxes the following during the resident period:
- Wages earned while physically living in Arizona
- Business income from an Arizona location
- Rental income from Arizona property
- Gambling winnings earned in Arizona
- Retirement or pension income if received while a resident
Income not taxable during the nonresident period includes:
- Wages earned after leaving Arizona
- Wages earned before moving to Arizona
- Interest and dividends (unless part of prorated adjustments)
- Out-of-state business income earned fully outside Arizona
The allocation ratio on line 13 ensures accurate apportionment. This ratio directly affects prorated exemptions and the amount of income considered taxable to Arizona. Accurate separation of resident-period and nonresident-period income is essential to producing a correct result.
Form 140PY also includes worksheets for dependent credits, exemption values, and standard deduction increases. This calculator handles all worksheets automatically and ensures compliance with the Arizona Department of Revenue’s 2024 instructions.
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 – Full-Year Resident Calculator
- Arizona Form 140NR – Nonresident Calculator
- Arizona Form 140A – Short Form Calculator
- Arizona Form 140EZ – EZ Form Calculator
Individuals who moved into or out of Arizona should review Form 140PY guidelines carefully. Using the calculator ensures accurate prorating of income and deductions, prevents common residency-based filing errors and helps produce a correct tax or refund result.
Quick Access Tools
Frequently Asked Questions
How does the Arizona tax rate apply on Form 140EZ?
Form 140EZ uses the same statewide flat tax rate that applies to all Arizona resident income tax returns. The rate is applied to taxable income after subtracting the standard deduction. Because the EZ form does not allow deductions, adjustments, or specialized exemptions, the calculation is straightforward and consistent across all taxpayers who qualify. While simplified, taxpayers may still benefit from comparing outcomes with Form 140A or Form 140 if their income or credit situations are more nuanced.
How are medical deductions handled for part-year residents on Schedule A(PY)?
Medical deductions follow the federal rule requiring expenses to exceed 7.5% of federal AGI before any amount becomes deductible. Because AGI is based on the full tax year—even for part-year residents—this threshold affects how much of the medical deduction flows into Arizona’s calculation. Once the federal deduction amount is entered on the schedule, Arizona applies its own rules, makes any required adjustments, and only then prorates the remaining allowable deduction by the part-year ratio.
Can I claim Form 323 alongside other Arizona tax credits?
Yes. Arizona allows taxpayers to claim multiple credits in the same year—including QCO credits (Form 321), QFCO credits (Form 348), private school tuition credits (Form 322), and switcher credits. Each credit has independent limits. Many taxpayers stack these credits to maximize their tax benefit while supporting different educational and charitable institutions across the state.
Are employer unemployment or state payroll taxes shown?
No—those are employer liabilities; your take-home shows only employee withholdings.
How does Arizona define “household income” for purposes of Form 140ET?
Household income includes all income received by every household member—wages, pensions, Social Security benefits, interest, dividends and any other taxable or nontaxable amounts required under Arizona rules. Unlike the federal return, Arizona applies excise-credit eligibility based on combined income rather than just the filer’s income. This prevents taxpayers from receiving relief credits when household earnings exceed eligibility limits. Taxpayers must be careful to include all income amounts accurately, as Arizona may cross-check against reported federal data or other state-maintained records.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.