Does a taxpayer have to file an Arizona state income tax return in 2017 if they lived in Arizona for part of the year but earned no income in Arizona?

[SweetieJean]

Any unearned income while there?

[bill_thomas]

NO.  no income whatsoever in AZ

[DianeW · Accepted solution]

Yes.  Your tax liability will be zero, but it is required to be filed.

Part-Year Residents: If you are a part-year resident, you must file Arizona Form 140PY, Part-Year Resident Personal Income Tax Return. You are a part-year resident if you did either of the following during 2017: • You moved into Arizona with the intent of becoming a resident. • You moved out of Arizona with the intent of giving up your Arizona residency.

You must complete your federal return before completing your Arizona return. You must complete a 2017 federal return to determine your federal adjusted gross income, even if not filing a federal return. Arizona uses federal adjusted gross income as a starting point to determine Arizona taxable income.

For more information a link is provided for your convenience:  2017 Part Year Resident Instructions

[Edited:  01.24.2018 | 5:44 PM}

[bill_thomas]

Your reply is inconsistent.  On the top, you say "yes.  Your liability will be zero, but filing is required.  In paragraph 3, you say "if you had no income while a resident of AZ, including wages, or income from AZ property, then a tax return is not required to be filed.  My taxpayer had NO AZ INCOME WHATSOEVER.  Does she still have to file AZ tax return or not?

[DianeW]

@bill_thomas  Apologies, I meant to remove that sentence.  The AZ instructions do not say you don't have to file, you can have a 0 % of income which will relate to a 0% of tax.