120/PTE-W: Estimated Tax Worksheet for Corporations & Pass-Through Entities (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 120/PTE-W is an estimated tax worksheet for corporations, exempt organizations, and pass-through entities. It calculates Arizona tax liability, the required annual payment, and installment amounts, with sections for the annualized income and adjusted seasonal install
Who files this form
The 2025 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 helps calculate required estimated tax installments. The form text does not state who is required to make estimated payments or whether the worksheet itself must be submitted.
What you'll need
Have the information needed for the lines that apply to you:
- Your Arizona tax liability for line 1.
- Your 2024 return if you are a C corporation or exempt organization. Line 2b asks for the tax shown on that return.
- Taxable income for each applicable period if using Schedule A.
- Amounts for tax credit recapture, nonrefundable credits, refundable credits, and any claim of right adjustment if completing Schedule A.
- If using the adjusted seasonal installment method, taxable income for the specified periods in tax years beginning in 2022, 2023, 2024, and 2025.
Several lines refer to separate instructions, which were not provided with this text.
Common mistakes
- Missing the PTE election checkbox: The form tells partnerships and S corporations making the PTE election to check the box and read the instructions before proceeding.
- Using the seasonal method without qualifying: The printed caution says to use this method only if the base period percentage of any six consecutive months is at least 70%. The method is not available to partnerships or S corporations making the PTE election.
- Overlooking the large-corporation note: On Schedule A, line 48, large corporations are directed to the instructions for line 4 to determine the amount to enter.
Questions people ask
What does line 2a calculate?
Line 2a is 90% of the Arizona tax liability entered on line 1.
Are all four installments calculated as 25% of line 2e?
Line 4 says to enter 25% of line 2e in each column unless the taxpayer uses the annualized income installment method, uses the adjusted seasonal installment method, or is a large corporation. It refers those taxpayers 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 those entities.
What tax rate does the annualized income calculation use?
Schedule A, line 9 says to multiply annualized taxable income by 4.9%. PTEs use 2.5% instead.
Where do the required installments from Schedule A go?
Part 3, line 52 says to enter the lesser of line 47 or line 50, then carry that amount to page 1, line 4.