Claim of Right Individual: of Right - Individual Form (2025)

Who files this form

Complete this form if you figure your 2025 Arizona tax under Arizona’s claim of right provisions. It calculates the reduction in a prior year’s tax and explains the amounts you repaid.

If the total income you repaid during 2025 under a claim of right is $3,000 or less, the form says to 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 2025 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 income repaid during 2025 that was previously included in income under a claim of right.
• Each prior tax year that included the repaid income.
• The Arizona tax return filed for each affected prior year, including the tax amount.
• Your recalculation of each prior year’s tax without the income repaid in 2025.
• Whether you took a deduction instead of a credit on your 2025 federal income tax return.

Part 3 requires an explanation showing how you calculated the amounts in Part 2. Use page 2 or your own schedule if you need more space.

How to file

Include the completed Claim of Right form with your tax return. The supplied form does not give a mailing address or e-filing directions.

In Part 2, enter the prior year’s tax and refigure that tax without the income repaid in 2025. Subtract line 7 from line 6 to calculate the credit on line 8.

Report the credit on the applicable return:

• Form 140: line 54, box 54b.
• Form 140PY: line 64, box 64b.
• Form 140NR: line 63, box 63b.
• Form 140X: line 43, box 43b.

If you complete more than one Claim of Right form, add the amounts on line 8 and report the total. Small Business Income Tax Return filers are directed to consult the instructions, which are not supplied here.

Common mistakes

• Do not compute a credit if line 1 is $3,000 or less. The form says to stop.
• Do not use just one form when the repaid income came from more than one prior tax year. Include a separate form for each year.
• If you took a federal deduction instead of a credit, do not overlook the required income addition. Add line 1 as “Other Additions to Income” on Form 140, line 18; Form 140PY, line 31; or Form 140NR, line 32; or as “Additions to Income” on Form 140X, line 23.
• When using multiple Claim of Right forms, remember to total all line 8 amounts.
• If you file a Small Business Income Tax Return, consult the instructions before completing this form.

Questions people ask

What does this form calculate?

It calculates the prior year’s tax reduction for income repaid in 2025 under a claim of right. The difference on line 8 is the current-year claim of right credit.

Can I compute this credit if I repaid exactly $3,000?

No. The form says you do not qualify to compute the credit if line 1 is $3,000 or less.

What if my repayment relates to several prior tax years?

Complete a separate form for each prior tax year, include each with your 2025 return, and add the line 8 amounts to determine the total credit to report.

Where do I explain my calculations?

Use Part 3 to explain your claim for the prior year entered on line 5 and show how you calculated Part 2. Continue on page 2 or provide your own schedule if needed.

Official sources

• https://azdor.gov/forms