Just got a call from a new client who moved here from Arizona in 2010, wanting me to handle their return before extended due date. When someone permanently moves out of Arizona in the middle of the year, does Arizona require them to file a "Non-Resident" return or a "Part-Year Resident" return?
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"The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
I think a Part Year return should be filed. Also, I don't think AZ cares a whole lot as long as the AZ income is reported and the tax is paid.Last edited by BHoffman; 09-23-2011, 12:24 PM. -
Yes
Yes - file a 140PY, assuming there was Arizona income.Comment
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Thanks both of you.
Looks like we will have W-2 income allocated properly to each state by the employer, but a little issue with some qualified plan early distributions that may have to be handled manually (part in AZ and part in SC)."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Another question about Arizona. The client gave me figures for "license plate tags." They told me this is paid at the DMV, but I'm curious if any component of it might typically be considered property tax in AZ. Thanks."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Vlt
On the registration, one of the lines is vehicle license tax (VLT). This is personal property tax, and it is the largest majority of the license plate fee. VLT does not include additional fees, for example, fees for vanity plates.Comment
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Thanks AZ & Gary.
Two more questions if I may.
The client is under 59-1/2 and made an early withdrawal from a retirement plan due to a job loss and cash crunch, etc. They also did a short sale on their primary residence and received a 1099-C.
1) Does AZ exempt any income from a retirement plan even if it's an early withdrawal?
2) Does AZ basically follow the IRS rules on 1099-C for a primary residence?"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Hi John -
1) AZ allows a $2500 exclusion from federal, AZ state, or municipal pension distributions.
2) Sort of. See the link below:
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Thank you - that was VERY helpful."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Yet another question
So from what I read, if the taxpayer owes about $1K to Arizona and can't pay, it seems the logical thing to do is to file the return without payment and wait for the bill to arrive. They can then file Form 140-IA and ask for 24 months to pay the tax, plus whatever P&I accumulate. If they have a pretty clean record with AZ, the payment arrangement will generally be automatically approved...
Does that sound about right?"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Hi John - I've never filed this form, but looked it up at
and the instructions look pretty easy
Here's a link to the list of AZ forms:
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Thanks again for the response - I appreciate the confirmations on what I'm turning up on my own. Just in the interest of full disclosure, I'm not billling someone for the advice you're giving me on this matter. Just trying to help a deserving acquaintance out of a bit of a jam (at no charge)."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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