ARIZONA STATE TAX QUESTION

[YUKEM68]

MY CLIENT MOVED TO ARIZONA MID YEAR. THEIR ONLY INCOME IS RETIREMENT AND SOCIAL SECURITY. ON FORM 140PY LINE B15 IT SHOWS AS OTHER INCOME. SHOULD I SHOW THIS INCOME AS ARIZONA INCOME TOO FOR HALF A YEAR? IT IS NOT EARNED INCOME. IT IS A RETIREMENT. I AM CONFUSED. THANKS FOR YOUR HELP!

[indyscott]

Two things..

First a gentle reminder that typing in all caps on a message board is generally interpreted as yelling. I know a lot of people keep the cap lock on most of the time, but the message board is generally not a good place for all caps.

Second, although I don't know beans about the specifics of income taxation in Arizona, your clients probably came from a different state when they moved to Arizona. They would be part year residents in each of the respective states. Most states have tax returns for part-year residents, where you apportion their income. You likely need to file a return for each state.

[fredazcpa]

Yes you need to show the amount of the "other income" (taxable SS I am asumming) this part of the part year is used for a percetage caclution for the Personal expetion

But Arizona does not tax tax SS benfits (line D33)

also if the retirment is from a government agency, school pension, public service pension, the is a $2500 for each tax payer when they have this income (line D35)

An yes you get the full standard deduction on a part year return or your itemized paid in AZ which ever is greater

hope this helps

[YUKEM68]

Yes you need to show the amount of the "other income" (taxable SS I am asumming) this part of the part year is used for a percetage caclution for the Personal expetion

But Arizona does not tax tax SS benfits (line D33)

also if the retirment is from a government agency, school pension, public service pension, the is a $2500 for each tax payer when they have this income (line D35)

An yes you get the full standard deduction on a part year return or your itemized paid in AZ which ever is greater

hope this helps

Thank You for your help!