Arizona Form 320, titled “Credit for Employment of TANF Recipients,” allows eligible employers to claim an Arizona income tax credit for hiring individuals who are recipients of Temporary Assistance for Needy Families (TANF). The credit is designed to encourage employment among low-income individuals and reduce dependency on public assistance programs.
Eligibility and Filing Requirements
Eligible Employers
- This credit is available to C corporations, and S Corporations. A partnership may pass the credit through to its corporate partners.
- A partnership may not pass this credit through to its individual partners.
- An S Corporation may not pass the credit through to its shareholders.
Employer Identification Number (EIN): Employers are required to provide their EIN when filing Form 320.
Partnership Reporting:
- If a partnership passes the credit through to partners, Form 320-P is used to allocate the credit among partners in accordance with ownership or partnership agreement provisions. Form 320-P is not location-based and is completed at the entity level for credit distribution purposes.
- For pass-through reporting on Form 320-P:
- Partnership name and EIN are reported in the appropriate identifying fields
- Each partner receiving an allocation is reported with:
- Partner name
- Partner identifying number (EIN or SSN as applicable)
- Allocated credit amount
Additional Information
Form Availability:
Form 320 and its instructions are available on the Arizona Department of Revenue (AZDOR) website at www.azdor.gov.
Assistance:
For assistance, taxpayers may contact AZDOR at:
- (602) 255-3381 (Phoenix)
- (800) 352-4090 (toll-free in area codes 520 and 928)
Supporting Documentation:
Taxpayers must maintain documentation supporting TANF recipient eligibility and employment qualification requirements as specified in AZDOR Form 320 instructions. Additional procedural guidance may be referenced through AZDOR publications and administrative materials.
Source:
Arizona Form 320 - Credit for Employment of TANF Recipients (PDF)
https://azdor.gov/forms/tax-credits-forms/credit-employment-tanf-recipients
Disclaimer: Always verify details with the current year’s official forms and instructions from the Arizona Department of Revenue or your state’s Department of Revenue. Tax rules may change annually, and professional advice from a CPA or tax attorney is recommended for complex situations.