333: Credit for Employing National Guard Members (2024)

Arizona · Arizona DOR · Used for tax years 2024

Arizona Form 333 calculates the credit for employing National Guard members, using $1,000 per qualifying employee placed on active duty during the taxable year. It also reports credits passed through from partnerships or S corporations, available credit carryovers, and an S corpo

Who files this form

Arizona Form 333 calculates the Credit for Employing National Guard Members for tax year 2024.

The form provides for individuals, C corporations, S corporations, partnerships, and exempt organizations with unrelated business taxable income (UBTI). It also includes entries for credits passed through from partnerships and S corporations.

All taxpayers completing Form 333 must complete Part 2, the credit computation.

What you'll need

Have the following information and applicable forms available:

  • Your name and Social Security number or Employer Identification Number, as shown on your return. For a joint return, include your spouse’s name and Social Security number.
  • The business name, location, and Employer Identification Number.
  • For Form 333-1, each qualifying employee’s name, Social Security number, hire date, and date placed on active duty. The schedule also asks whether the employee held a full-time position when activated and served on active duty during the taxable year for training beyond the required annual training period, including activation for federal or state contingencies or emergencies.
  • Form 333-P or Form 333-S, if you have a pass-through credit. Form 333 uses line 4 of each applicable form.
  • Original credit amounts and amounts previously used for any available carryover from 2019 through 2023.

How to file

Include Form 333 with your return. The supplied form does not provide a mailing address or e-file instructions.

  1. Complete the taxpayer and business information.
  2. In Part 2, multiply the number of qualifying employees placed on active duty during the current taxable year by $1,000. Add any partnership or S corporation pass-through credits to get line 9.
  3. Partnerships must complete a separate Form 333-P for each partner and give each partner a copy. Do not complete Parts 5 and 6.
  4. S corporations must complete the election in Part 4, choosing either to claim the credit or pass it through to shareholders. If passing it through, complete a separate Form 333-S for each shareholder and give each shareholder a copy.
  5. Complete the applicable carryover and total-credit entries in Parts 5 and 6.

Transfer the current-year credit, carryover, and total to columns (a), (b), and (c), respectively, of the applicable form:

  • Individuals without the Small Business Income election: Form 301, Part 1, line 11.
  • Individuals with the Small Business Income election: Form 301-SBI, Part 1, line 7.
  • C corporations, S corporations claiming the credit, and exempt organizations with UBTI: Form 300, Part 1, line 6.

Common mistakes

  • Leaving out Form 333: The form says to include it with your return.
  • Skipping Part 2: All taxpayers completing the form must complete this part.
  • Completing Parts 5 and 6 for a partnership: Partnerships are specifically told not to complete those parts.
  • Checking both S corporation election boxes: Check only one. The election is irrevocable for the stated taxable year.
  • Missing the carryover rule for an S corporation passing through its credit: If it has a prior-year carryover, it must complete Part 5 and Part 6, lines 18 and 19. If it has no carryover, it must not complete Parts 5 and 6.
  • Leaving qualifying employees off the schedule: If there are more than 16 qualifying employees, complete additional schedules and include them with the form.

Questions people ask

How much is the credit per employee?

Part 2 lists a credit of $1,000 per qualifying employee placed on active duty during the current taxable year.

Where do I enter a credit passed through to me?

Enter the amount from Form 333-P, line 4, on Form 333, line 7. Enter the amount from Form 333-S, line 4, on Form 333, line 8.

Which carryover years appear on the 2024 form?

Part 5 lists 2019 through 2023. For each year, subtract the amount previously used from the original credit amount to calculate the available carryover.

Can an S corporation choose whether to claim or pass through the credit?

Yes. Part 4 provides an irrevocable election for the stated taxable year to either claim the credit or pass it through to shareholders. Check only one box.

Official sources

All versions of 333