120: Arizona Corporation Income Tax Return (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 120 is the corporation income tax return for 2024. It reports federal taxable income, Arizona income adjustments, tax credits and payments to calculate Arizona tax due or an overpayment.
What you'll need
Have the following ready, as applicable:
- Federal income tax return: Include it with the Arizona return. Line 1 uses taxable income from that return.
- Arizona net operating loss computation: Include a computation schedule for the Arizona NOL carryover on line 14.
- Tax credit forms: Arizona Form 300 supplies the credit recapture and nonrefundable credit amounts. Line 22 lists Forms 308, 334, and 349 for refundable credits.
- Payment details: Schedule F asks for corporation names, EINs, payment dates, and estimated and extension payment amounts.
- Multistate schedules: Qualifying air carriers must use Schedule ACA. Qualifying multistate service providers must include Schedule MSP. Schedules C and D also call for supporting schedules for specified income and expense entries.
- Combined or consolidated filing information: The form directs these filers to the Form 51 instructions and asks whether Form 51 is included.
How to file
E-file the return unless the corporation has a waiver or is exempt from e-filing. The form refers to the instructions for details, but no instructions were provided here.
The declaration must be signed by the president, treasurer, or another principal officer.
The supplied form does not give a mailing address or explain how to submit an electronic return.
Common mistakes
- Filing on paper without an exception: The form must be e-filed unless the corporation has a waiver or is exempt.
- Using the wrong multistate schedule: The form's important notice says qualifying air carriers must use Schedule ACA and qualifying multistate service providers must include Schedule MSP.
- Completing extra apportionment sections: If you check “Sales Factor Only,” complete only Schedule E, Section E3, lines a through f. Skip E4 and E5.
- Marking the reserved area: Do not mark the area labeled “Revenue Use Only.”
Questions people ask
How is the tax on line 16 calculated?
Enter 4.9% of Arizona taxable income on line 15 or $50, whichever is greater.
What Arizona filing methods are listed?
The form lists separate company, combined (unitary group), and consolidated. Check only one. The form refers to the instructions for choosing a method.
What do corporations operating entirely in Arizona do after line 5?
Check box 5a and go to line 13. Enter the amount from line 5 on line 13. Multistate corporations instead continue to line 6 and use line 12 for line 13.
Can an overpayment be applied to next year's estimated tax?
Yes. Line 32 lets you apply an amount from line 31 to 2025 estimated tax. Line 33 is the amount to be refunded, calculated by subtracting line 32 from line 31.