320-P: Credit for Employment of TANF Recipients – Distribution to Partners (2025)
Arizona · Arizona DOR · Used for tax years 2025
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 this information to complete their own Form 320.
Who files this form
For tax year 2025, a partnership distributing this credit must complete a separate Form 320-P for each corporate partner.
Corporate partners use Form 320-P to complete their own Form 320 and 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 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 partnership must provide each corporate partner with the completed Form 320-P and the certification received from the Arizona Department of Revenue.
How to file
Partnerships
- Complete Form 320-P for each corporate partner.
- On line 3, enter the 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 Arizona Department of Revenue certification.
- 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 Form 320-P, line 4, on your own Form 320, Part 4, line 15, column (d).
- Enter the amount from Form 320-P, 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.
The form does not provide a mailing address or e-file instructions.
Common mistakes
- Claiming the credit as an individual taxpayer. The form states that individuals are not eligible.
- Using the wrong tax year when tax periods differ. If the corporate partner files on a calendar-year basis and the partnership files on a fiscal-year basis, claim the credit for the year in which the partnership’s fiscal year ends.
- Leaving out required copies. Partnerships must include each Form 320-P with their partnership return. Corporate partners must include their Form 320-P with their own return.
- Not keeping a copy. Both the partnership and corporate partner must keep a copy for their records.
Questions people ask
Can an individual partner 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 corporate partner’s ownership percentage. Use the same percentage to calculate the partner’s share of qualifying wage expense.
Where does the corporate partner report these amounts?
Report the credit from Form 320-P, line 4, on Form 320, Part 4, line 15, column (d). Report qualifying wage expense from line 6 on Form 320, Part 4, line 15, column (b).
What if the partnership uses a fiscal year but the corporate partner uses a calendar year?
The corporate partner claims the credit on its return for the year in which the partnership’s fiscal year ends.