141AZ Schedule K-1(NR): 141AZSCHK1(NR) Nonresident Beneficiary's Share of Income (2025)
Arizona · Arizona DOR · Used for tax years 2025
Arizona Form 141AZ Schedule K-1(NR) reports a nonresident beneficiary’s share of an estate or trust’s income from Arizona sources and related fiduciary adjustment. It also provides capital gain and loss information and reports certain distributed subtractions, pass-through entity
Who files this form
The 2025 Schedule K-1(NR) is for reporting a nonresident beneficiary’s share of an estate or trust’s income from Arizona sources and the related fiduciary adjustment.
The form gives instructions to the fiduciary for completing the schedule and to beneficiaries for using the information on their Arizona returns. It covers individual beneficiaries and beneficiaries that are estates, trusts, partnerships, corporations, or exempt organizations.
What you'll need
Have the following information available to complete the applicable parts of the schedule:
- Identification and contact information: The estate or trust’s name and EIN; the beneficiary’s name, EIN or SSN, and address; and the fiduciary’s name, address, and phone number.
- Form 141AZ: Schedule D, line D9, column (c), for Arizona-source distributable net income, and Schedule C, line C14, for the net fiduciary adjustment.
- Federal Schedule K-1 and capital gain information: Distributed capital gains or losses, Arizona-source amounts, acquisition dates, and any capital loss carryovers distributed when the estate or trust terminates.
- Other distributed amounts, if applicable: Virtual currency and non-fungible token values at the time of airdrop, allowed gas fee or non-fungible token basis subtractions, and pass-through entity tax credit and tax payment information.
Common mistakes
- Skipping the capital gain subtraction worksheet. The form says individual beneficiaries must complete the Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011, in the Form 140NR instructions to determine the allowable subtraction.
- Using the wrong column for an individual nonresident’s capital gain worksheet. The form directs nonresidents to use column (e) on lines 7, 10, and 11 to compute the allowable subtraction.
- Claiming the Part 3 subtraction for a C corporation or exempt organization. The form states that no subtraction is allowed for these beneficiaries. Part 3 is informational only for them and does not need to be reported.
Questions people ask
Where does an individual nonresident report the income on line 2?
Enter it on Form 140NR, page 1, line 21, in the “ARIZONA” column.
When does the fiduciary report capital loss carryovers on lines 8 and 9?
Complete these lines if this is the estate or trust’s final return and a capital loss carryover was distributed to the beneficiary. Line 8 is for short-term carryovers, and line 9 is for long-term carryovers.
Where do the amounts on lines 12 and 13 go?
Report line 12, the distributed value of virtual currency and non-fungible tokens received at the time of airdrop, on Form 140NR, page 6, item “N.” Report line 13, the distributed subtraction for gas fees or non-fungible token basis, on page 6, item “O.” Both are listed as other subtractions from Arizona gross income.
Where does an individual beneficiary report the tax credit on line 14?
Enter the distributed share of the Entity-Level Income Tax Credit on Form 355, line 3.