Claim of Right Individual: of Right - Individual Form (2024)
Arizona · Arizona DOR · Used for tax years 2024
Arizona’s 2024 Claim of Right - Individual form calculates a credit based on the decrease in a prior year’s Arizona tax when income repaid in 2024 is excluded. It reports the amounts repaid, the prior tax years involved, and an explanation of the calculation.
Who files this form
Complete this form if you figure your 2024 Arizona tax under Arizona’s claim of right provisions. It calculates the prior year’s tax reduction and explains the amounts you repaid.
If the total income you repaid during 2024 that was included in income under a claim of right is $3,000 or less, stop. You do not qualify to compute this credit.
If the repaid income was reported in more than one prior tax year, complete a separate Claim of Right form for each prior tax year and include each form with your 2024 return.
What you'll need
Have the following information ready:
- Your name and Social Security number, plus your spouse’s name and Social Security number if filing jointly.
- The total amount of income repaid during 2024 that was included in income under a claim of right.
- Each prior tax year in which that income was included.
- The amount of tax from the Arizona return filed for each affected prior year.
- Your recalculated prior-year tax without the income repaid in 2024.
- Whether you took a deduction instead of a credit on your 2024 federal income tax return.
Part 3 requires an explanation showing how you figured the amounts in Part 2. If you need more space, use page 2 or provide your own schedule.
How to file
Include this form with your tax return. The form does not provide a mailing address or e-file directions.
- Complete Part 1 with the total amount repaid in 2024, the affected prior tax years, and whether you took a federal deduction instead of a credit.
- In Part 2, enter the prior tax year and the tax from that year’s Arizona return. Refigure the tax without the income repaid in 2024, then subtract the recalculated tax from the original tax.
- Explain your calculations in Part 3.
- Enter the line 8 credit on Form 140, line 54, box 54b; Form 140PY, line 64, box 64b; Form 140NR, line 63, box 63b; or Form 140X, line 43, box 43b.
If you complete more than one Claim of Right form, add all line 8 amounts and enter the total on your return. If you are filing a Small Business Income Tax Return, the form directs you to see the instructions.
Common mistakes
- Computing a credit when line 1 is $3,000 or less. The form says to stop because you do not qualify to compute the credit.
- Using one form for multiple prior tax years. Complete and include a separate form for each affected prior tax year.
- Missing the income addition after taking a federal deduction. If you answered “Yes” on line 4, include line 1 as an “Other Additions to Income” on Form 140, line 18; Form 140PY, line 31; or Form 140NR, line 32; or as an “Additions to Income” on Form 140X, line 23. Small Business Income Tax Return filers are directed to see the instructions.
- Forgetting to combine credits from multiple forms. Add all line 8 amounts before entering the total on your return.
- Completing the form without checking the small business instructions. The form tells Small Business Income Tax Return filers to see the instructions before completing it.
Questions people ask
Can I compute this credit if I repaid $3,000 or less?
No. If the total on line 1 is $3,000 or less, the form says to stop. You do not qualify to compute a credit for amounts paid back under a claim of right.
What if the income I repaid was reported in several prior years?
Complete a separate Claim of Right form for each affected prior tax year. Include all of them with your 2024 return and add their line 8 amounts to determine the total credit to enter on your return.
How is the credit calculated?
For the prior year entered on line 5, refigure your tax without the income repaid in 2024. Subtract that amount on line 7 from the prior-year tax on line 6. The difference on line 8 is your current-year claim of right credit.
What if I need more room to explain my calculations?
Continue Part 3 on page 2 or provide your own schedule.
Where does the form point me for more information?
The form refers to the department’s procedure, ITP 16-1, for more information about Arizona’s claim of right provisions. It also directs Small Business Income Tax Return filers to see the instructions before completing the form.