120: Arizona Corporation Income Tax Return (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 120 is the corporation income tax return for 2025. It reports federal taxable income, Arizona adjustments, tax credits and payments to calculate Arizona tax due or an overpayment, with income allocation and apportionment sections for multistate corporations.
What you'll need
Have the following ready, as applicable:
- Federal income tax return: Line 1 uses taxable income from the included federal return. The form also asks for the business activity code from federal Form 1120.
- Payment records: Schedule F asks for corporation names, EINs, payment dates, and estimated and extension payment amounts.
- Arizona net operating loss computation: Include a computation schedule if claiming an Arizona NOL carryover on line 14.
- Tax credit forms: Arizona Form 300 supplies the credit recapture and nonrefundable credit amounts. Line 22 identifies refundable credits from Forms 308, 334, and 349.
- Multistate schedules: Include supporting schedules where requested for nonbusiness income, expenses, and income allocated to Arizona. Qualifying air carriers must use Schedule ACA, and qualifying multistate service providers must include Schedule MSP.
- Apportionment records: Schedule E uses sales information and, for standard apportionment, property and payroll information.
How to file
File electronically unless the corporation has a waiver or is exempt from e-filing. The form refers to the instructions for details, but no instructions were supplied. The supplied form does not give a mailing address or an e-filing destination.
The return's declaration must be signed by the corporation's president, treasurer, or another principal officer. If filing under an extension, check the extension box.
Common mistakes
- Marking the revenue-use-only area: The form says not to mark in that area.
- Choosing more than one Arizona filing method: Check only one: separate company, combined (unitary group), or consolidated.
- Leaving out required worksheets: Complete the page 5 Schedule A worksheet when entering amounts on A6 or A8, and the Schedule B worksheet when entering amounts on B8 or B10.
- Using the wrong multistate schedule: Qualifying air carriers must use Schedule ACA. Qualifying multistate service providers must include Schedule MSP.
- Completing unnecessary apportionment sections: If you select “Sales Factor Only,” complete only Schedule E, Section E3, lines a through f, and skip E4 and E5.
- Omitting an explanation of an apportionment change: If you answer “Yes” to Schedule G9 about changing how income is apportioned or allocated to Arizona, include an explanation.
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.
Which income line does a corporation operating entirely in Arizona use?
A 100% Arizona corporation checks box 5a, skips to line 13, and enters the adjusted income from line 5. A multistate corporation uses line 12 for line 13.
Can an overpayment go toward next year's estimated tax?
Yes. Line 32 lets you apply an amount from the 2025 return's line 31 overpayment to 2026 estimated tax. Line 33 shows the amount to be refunded after subtracting line 32 from line 31.
What if this is the corporation's final Arizona return under its EIN?
Answer “Yes” to question G, then check dissolved, withdrawn, or merged/reorganized. List the successor corporation's EIN, if any.