320-P: Credit for Employment of TANF Recipients – Distribution to Partners (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona Form 320-P reports a corporate partner’s share of a partnership’s Credit for Employment of TANF Recipients and qualifying wage expense. Corporate partners use these amounts to complete their own Form 320.
Who files this form
Partnerships must complete a separate 2024 Form 320-P for each corporate partner to report that partner’s share of the credit for employment of TANF recipients.
Corporate partners use Form 320-P to complete their own Form 320 and must include a copy of Form 320-P with their return.
Individual taxpayers are not eligible to claim this credit.
What you'll need
To complete and distribute Form 320-P, have:
- The partnership’s name and employer identification number (EIN).
- The corporate partner’s name, EIN, and ownership percentage.
- The partnership’s Form 320, Part 4, line 16, column (d), showing the credit amount.
- The partnership’s Form 320, Part 4, line 16, column (b), showing total qualifying wage expense.
- The certification received from the Arizona Department of Revenue, which the partnership must provide to each corporate partner along with the completed Form 320-P.
How to file
Partnerships
- Complete Form 320-P for each corporate partner.
- On line 3, enter the partnership’s credit from Form 320, Part 4, line 16, column (d). Multiply it by the partner’s ownership percentage on line 2(c) and enter the result on line 4.
- On line 5, enter total qualifying wage expense from Form 320, Part 4, line 16, column (b). Multiply it by the ownership percentage on line 2(c) and enter the result on line 6.
- Give each corporate partner a copy of the completed form and the certification received from the Arizona Department of Revenue.
- Include a copy of each Form 320-P with the partnership return and keep a copy for your records.
Corporate partners
- Enter the amount from line 4 on your own Form 320, Part 4, line 15, column (d).
- Enter the amount from line 6 on your own Form 320, Part 4, line 15, column (b).
- Include a copy of Form 320-P with your return and keep a copy for your records.
Common mistakes
- Claiming the credit as an individual taxpayer. The form states that individual taxpayers are not eligible.
- Using the wrong tax year when filing on a calendar-year basis. If the partnership uses a fiscal year, claim the credit on your return for the year in which the partnership’s fiscal year ends.
- Leaving out required copies. The partnership must include each Form 320-P with its return. Corporate partners must also include their Form 320-P with their returns.
- Not keeping records. Both the partnership and corporate partners are instructed to keep copies of the completed form.
Questions people ask
Can an individual taxpayer claim this credit?
No. Individual taxpayers are not eligible to claim this credit.
How is a corporate partner’s share calculated?
Multiply the partnership’s credit by the partner’s ownership percentage. Use the same percentage to calculate the partner’s share of qualifying wage expense.
Where do corporate partners report the amounts from Form 320-P?
Report line 4 on your own Form 320, Part 4, line 15, column (d). Report line 6 on Form 320, Part 4, line 15, column (b).
What if the partnership uses a fiscal year but I file on a calendar-year basis?
Claim the credit on your return for the year in which the partnership’s fiscal year ends.