2021 ProSeries/Arizona Readme

Release 2021.500

Contents

Items addressed in this release

Items addressed in previous releases

What's new for ProSeries/Arizona

Forms

Electronic filing

Additional Information

Items addressed in this release

• Arizona Extension Payments: An error was corrected that was preventing Arizona extension payments entered in the federal program from calculating on the Arizona Personal Income Tax Return.

Items addressed in previous releases

The following forms and worksheets have been addressed in previous releases:

• Arizona Info Worksheet, Small Business Income Tax Return section - needs to be checked to make SBI election
• Form 140-SBI, Small Business Income Tax Return
• Form 301-SBI, Nonrefundable Individual Tax Credits
• Form 309-SBI, Credit for Taxes Paid to Another State
• Form AZ-140V-SBI, Tax Payment Voucher
• Form 140X-SBI, Small Business Amended Income Tax Return
• Tax Summary, updated to include SBI items. Net Balance Due or Net Refund calculated at bottom of the summary.
• Form 140-SBI, Direct Deposit/Direct Debit enabled
• Income Tax Surcharge, Maricopa County Superior Court ruling struck down Proposition 208, repealing the income tax surchage and revising the income tax rate for the highest income tax earners

What's new for ProSeries/Arizona

The following items are new for tax year 2021:

• Due Date. Taxpayers have until April 18, 2022 to file their 2021 tax return. If filing an extension, the extension due date is October 17, 2022
• Standard Deduction. The Arizona standard deduction amount will match the federal standard deduction ($12,550 single/married filing separate, $18,800 head of household, $25,100 married filing joint).
• Tax Surcharge. Individuals with taxable income of more than $250,000 (single and married filing separate) and more than $500,000 (married filing joint and head of household) to pay an additional tax surcharge.
• Arizona Small Business Income (SBI) Tax. Individuals may elect to report their small business income on Arizona Form 140-SBI. The small business income tax rate for tax year 2021 is 3.5%
• Military Pension Subtraction. benefits, annuities and pensions as retired or retainer pay of the uniformed services are no longer taxable in Arizona.

Forms

The Arizona Department of Revenue has approved for filing all forms and schedules included in ProSeries/Arizona.

Electronic filing

General information for electronic filing:

You can file returns electronically with this version of ProSeries/Arizona.

For a list of forms that can be e-filed, go to What's New This Year in Help Center.

Additional Information

Check all returns after printing

The Arizona Department of Revenue scans computer-generated forms to quickly process the income tax returns it receives. To meet the requirements for producing computer-generated forms, ProSeries is required to limit the width of the tax information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing it.

Bar codes on printed state returns

Arizona uses bar codes on computer-printed tax forms. This special formatting allows the state taxing authorities to process returns more quickly and efficiently. On-screen, you'll see only a small representation of the bar code on the lower-left side of the form. This image is static and does not change based on the information in the return. However, when you print the return, the bar code appears as a large rectangular box on the first page of the form. The width of the bar code is constant; the height varies according to the data in the return. In general, the more complex the return, the larger the printed bar code.

Returns that contain special formatting may be processed at a different location than manually prepared returns. Therefore, the filing instructions that print with the state return may contain a mailing address that's different from the mailing address in the package that is sent to taxpayers. Be sure to have your clients mail their returns to the address in the filing instructions that print with the return.

Important: Because the bar code image is a function of the data in the tax return, it's important that you reprint the page with the bar code if changes are made to any part of the return. Also, do not print blank copies of the main form and prepare them manually. The Arizona taxing authority may attempt to scan the form and reject it.

End of ReadMe file for ProSeries/Arizona