RobertB4444
Employee Tax Expert

State tax filing

Line 21 is looking for the Arizona source amount.  As long as all of the income and deductions on your schedule E are from Arizona sources then enter the same amount here as on the federal return and attach a copy of the federal return to the Arizona return for filing (TurboTax should do this automatically).  

 

If, for example, you had two properties on your schedule E and one was a profitable one from Arizona and a property with a loss from your home state then you would enter the net total from your schedule E on the federal portion of line 21 and only the net profit from the Arizona property on the second part of line 21.

 

If you have multiple properties on your schedule E enter the net gain or loss from Arizona sources on line 21.

 

You can check the instructions for the AZ 140NR here.

 

@jinyu2020

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