140NR - AZ contributions exceed your std deduction of $0

ue1 · ‎April 2, 2022

On my 140NR I added rental income on line 21 and then added the depreciation on lines 30 and 40 (same amount on both).

TT is rejecting prior inputs from the federal return on line 54 1c because ..........

"AZ contributions exceed your std deduction of $0. It may benefit you to itemize AZ deductions"

And so I did, but then my itemized deductions fall short of the threshold to be itemized.

What is the best path forward?

Rainman12 · ‎April 2, 2022

1) Do you have any net income from your AZ rental property(s)?

2) Are you itemizing on Federal? Almost but not quite?

3) As a Non-Resident, it's possible - but highly unlikely - that itemizing could be useful. AZ allows only a pro rata share of your Federal Sch A itemized deductions, but they also allow 100% of Federal for Medical - no 7.5% floor. Standard deduction amount of zero is appropriate, and I suggest no effort to change, unless you're in the rare zone described above.

You should Not have had to enter anything on lines 30 and 40; should have flowed fron Federal Sch E, and be the same if no 'Bonus' depreciation taken.

View solution in original post

Rainman12 · ‎April 2, 2022

1) Do you have any net income from your AZ rental property(s)?

2) Are you itemizing on Federal? Almost but not quite?

3) As a Non-Resident, it's possible - but highly unlikely - that itemizing could be useful. AZ allows only a pro rata share of your Federal Sch A itemized deductions, but they also allow 100% of Federal for Medical - no 7.5% floor. Standard deduction amount of zero is appropriate, and I suggest no effort to change, unless you're in the rare zone described above.

You should Not have had to enter anything on lines 30 and 40; should have flowed fron Federal Sch E, and be the same if no 'Bonus' depreciation taken.