120/PTE-W: Estimated Tax Worksheet for Corporations & Pass-Through Entities (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 120/PTE-W is an estimated tax worksheet for corporations and pass-through entities. It calculates Arizona tax liability, the required annual payment, and installment amounts, with a schedule for annualized income or adjusted seasonal installment calculations.
Who files this form
The 2024 worksheet is for taxpayers filing Arizona Forms 99T, 120, 120A or 120S, and for partnerships and S corporations making the Pass-Through Entity (PTE) election.
It calculates estimated tax payments. The form refers readers to instructions for key requirements, but those instructions were not provided.
What you'll need
Have the information needed for the lines you complete:
- Your Arizona tax liability for line 1. The form says to see the instructions before completing this line.
- Your 2023 return if you are a C corporation or exempt organization, to enter the tax shown on that return on line 2b.
- Taxable income for each applicable period if using Schedule A.
- Amounts for tax credit recapture, nonrefundable and refundable tax credits, and any claim of right adjustment if using Schedule A.
- Taxable income records for the specified periods in tax years beginning in 2021, 2022 and 2023, plus the specified 2024 periods, if using the adjusted seasonal installment method.
Common mistakes
- Missing the PTE checkbox: Partnerships and S corporations making the PTE election must check the box and see the instructions before proceeding.
- Using the seasonal method when it is not allowed: Schedule A, Part 2 says this method is not available to partnerships or S corporations making the PTE election.
- Overlooking the seasonal method restriction: The form cautions that this method can be used only if the base period percentage for any six consecutive months is at least 70%.
- Ignoring the large-corporation note: For line 48, large corporations are directed to the instructions for line 4 to determine the amount to enter.
Questions people ask
How do I calculate line 2a?
Enter 90% of the Arizona tax liability on line 1. Line 2a is one step in the required annual payment calculation, not the final line 2e amount.
Are the four required installments equal?
Line 4 says to enter 25% of line 2e in each installment column unless you use the annualized income method, the adjusted seasonal method, or are a large corporation. For those exceptions, the form refers you to the instructions.
Can a partnership or S corporation making the PTE election use the annualized income method?
Yes. Schedule A, Part 1 states that this method is available to partnerships and S corporations making the PTE election.
What tax rate is printed for the annualized income calculation?
Line 9 uses 4.9%, but specifies that PTEs use 2.5%.
Where do the Schedule A installment results go?
On line 52, enter the smaller of line 47 or line 50 for each column. Copy those amounts to page 1, line 4.