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Arizona Form

2014 Credit for Taxes Paid to Another State or Country

309

Phone Numbers

Application of Credit

Claim this credit only if the income was subject to tax in

For information or help, call one of the numbers listed:

both Arizona and the other state or country in the same tax

Phoenix

(602) 255-3381

year.

From area codes 520 and 928, toll-free

(800) 352-4090

You cannot apply this credit against interest or penalties

Tax forms, instructions, and other tax information

payable to Arizona.

If you need tax forms, instructions, and other tax

NOTE: You may use this credit only in the year incurred.

information,

the

department’s

website

You cannot carry the credit forward to the next year. You

also cannot carry the credit back to a prior year.

Income Tax Procedures and Rulings

These instructions may refer to the department’s income tax

Arizona Resident

procedures and rulings for more information. To view or

Arizona residents are allowed a credit against Arizona

print these, go to our website and click on Legal Research

income taxes for net income taxes imposed by and paid to

then click on Procedures or Rulings and select a tax type

another state or country if the following apply.

from the drop down menu.

1. The income taxed in Arizona is derived from sources

Publications and Brochures

within another state or country. This income is subject

To view or print the department’s publications and

to a net income tax in the other state or country

regardless of your residence.

brochures, go to our website and click on Publications.

2. The other state or country does not allow Arizona

Purpose of Form

residents a credit for taxes imposed on income subject

to tax in both Arizona and the other state or country.

Use Arizona Form 309 to figure your credit for taxes paid to

As an Arizona resident, nonresident returns filed with the

Arizona and another state or country on the same income. If

following states qualify for the credit:

claiming a credit for more than one state or country, make a

separate computation for each state or country.

Alabama, Arkansas, Colorado, Connecticut, Delaware,

Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky,

If you are not sure what amounts you should enter on Form

Louisiana, Maine, Maryland, Massachusetts, Michigan,

309, the department has issued an income tax procedure

Minnesota*, Mississippi, Missouri, Montana, Nebraska,

(ITP) to help you figure out what amounts you should use.

New Jersey, New Mexico, New York, North Carolina, North

For more information, see the department’s procedure, ITP

Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island,

08-1, Procedure for Calculating Credit for Taxes Paid to

Another State or Country by Arizona Resident Individuals.

South Carolina, Utah, Vermont, West Virginia and

Wisconsin.

NOTE: You must notify the department immediately if the

*Minnesota sources the sale of certain partnership interests

other state or country credits or refunds taxes for which you

have received an Arizona credit. In this case, you must file

to Minnesota. Minnesota allows an Arizona resident a credit

an amended return.

for taxes paid to Minnesota for the sale of a partnership

interest that is subject to Minnesota tax. As an Arizona

Complete this form only if you meet the following.

resident, you cannot claim this credit for taxes paid to

1. You are filing a 2014 Arizona income tax return.

Minnesota on the sale of a partnership interest that is

2. You paid a net income tax to another qualified state or

sourced to Minnesota.

country for 2014.

NOTE: This list is subject to change at any time.



If you are claiming a credit for taxes paid to another

state, payroll taxes withheld from income do not

Important: As an Arizona resident, nonresident returns

constitute a net income tax. Having tax withheld from

filed with the following states DO NOT QUALIFY for

your pay by Arizona and another state does not by itself

the credit:

qualify you for this credit. You must file a net income

Alaska, California, District of Columbia, Florida,

tax return to the other state.

Indiana, Nevada, New Hampshire, Oregon, South



If you are claiming a credit for taxes paid to another

Dakota, Tennessee, Texas, Virginia, Washington and

country, a net income tax paid to another country

Wyoming.

includes those taxes that qualify for a credit under

Internal Revenue Code (IRC) §§ 901 and 903.

NOTE: To claim a credit for taxes paid to a foreign country,

Nonresident

you must complete Form 309. You must complete Form 309

A credit against Arizona income taxes is allowed for

even if you did not have to complete federal Form 1116 to

claim a credit on your federal return.

Arizona nonresidents who are not allowed a credit by their

state or country of residence for taxes paid to Arizona if

You may not claim this credit for the following.

either:

1. Income taxes paid to any city or county.

1. The other state or country does not tax Arizona

2. Interest or penalties paid to another state or country.

residents on income derived from sources within the

NOTE: If you file an amended return after you claim this

other state or country.

credit, be sure to recalculate the credit, if required.

Arizona Form 309 Instructions - Credit For Taxes Paid To Another State Or Country - 2014

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