Arizona Form 140 Issue on Information Worksheet

[Wedding5500]

Hello,

I'm working on my Mom's Arizona return and under the section, "Tell us about any additional filing information" (Part IV - Other Info), it has the box checked off that her AZ gross income in 2024 was more than $75k/$150 if MFJ.

In 2024 she and my Dad filed MFJ and their income was NOT more than $150k.  He passed in July 2024 so this is her first year filing Single.

Why is that button checked, when in 2024 they did not earn more than $150K?

If I uncheck that box, will it "stay" or will it keep changing back?

Thank you for any insight!

[AmyC]

The checked box:

• If your mom's income is below $75,000, it should not be affecting her tax liability. The check should not matter.
• Gross income is the total of all income before any deductions. It includes social security, pensions, IRA distributions, etc. Maybe their gross income met the test.
• The senior deduction will check to see if the income should be phased out based on the checkbox.
• AZ uses it for other things sometimes.

I tried it in forms mode, and it stayed whichever way I marked but I am not trying to e-file my fake return. If the return is correct with taxable income, deductions, and credits, you are good to file either way.

[Wedding5500]

Hi @AmyC ,

Thank you for your response.

Looking at their Federal 1040:

2025 - AGI on Line 11a is NOT below $75k.

2024 - AGI on Line 11 - my Mom and Dad’s 2024 income was NOT above $150k.

Regarding the enhanced senior deduction on Schedule 1-A, she is not getting the full $6,000 deduction, but is getting $3,163.

Thank you.

[AmyC]

I just have to think that  AZ gross income is greater than $75k since it is usually much higher than AGI for seniors.  AZ adds back  tax exempt interest, foreign earned income and social security to create the gross income. 

Please note above I mentioned: Gross income is the total of all income before any deductions. It includes social security, pensions, IRA distributions, etc. 

Please check your math again. The reduced credit really could be correct. If not, then you need to contact support.