Tax Year Prior to 2020: I am a non-resident of AZ, but have a rental property there. I am trying to determine if I have to file NR-AZ. I asked the community and one answer said TT will tell you.

[timtg]

After entering all of my data TT does not flag and say I have to file or I do not have to file. TT simply asks if I want to file for $39.99. Others asked this question and TT tells them if your AAGI is $5500 or greater and your GI is $15K or higher you must file. When preparing my AZ NR the AZ Bottom Line page does not use the terms AAGI or GI. They have terms like AZ Source Income (mine is -5260) and AZ Taxable Income of $3188.  This would appear that I do not have to file (pay AZ $83), but it is not clear.  Please explain how the AAGI and GI equate or do not equate to AZSI and AZTI.  Thank you.  T

[KarenL2]

It is my personal recommendation that if you have a rental property in another state, you file a tax return there.  The primary reason is you have you record of reporting on file with the state.

To answer your questions regarding terms:

AAGI- Arizona Adjusted Gross Income is simply the Federal Adjusted Gross Income (AGI) adjusted for the state taxes. (For example, there may income/deductions allowed for federal that are/are not allowed for state.)  This is the amount before any credits, personal exemptions, or standard/itemized deduction.  If the only thing you are reporting is your rental property, then your AAGI will be the net profit for AZ from that rental.

AZ Taxable Income is the net profit from your rental minus credits, personal exemptions, and standard/itemized deduction.  If your AZ Source Income is a negative number, and your only income in AZ is the rental property, it is impossible for your AZ Taxable income to be a positive number as you posted above.

GI  - Gross Income is the total of every dollar received on your rental property before deductions or adjustments. Your AZ Source Income should be the same as your Gross Income (GI) for Arizona.

[RealityG]

If you collected rents totaling more than $15,000, then you must file a Form AZ140NR, simple as that.

[retire88]

According to form 140NR, AZ gross income is defined on line 26 and includes federal Schedule E income on line 21.

I purchased the AZ state tax and followed Turbotax's instructions on filling it out. I then looked at line 26 for the AZ gross income and it is less than $15000 so I do not meet the filing requirement.

I recommend everyone who is concerned do the same and keep it as a record.