Arizona Form 309 is used to compute the credit for taxes paid to another state or country on income that is taxed by both Arizona and the other jurisdiction. Part I of the form is used to determine the amount of income that is subject to tax in both Arizona and the other state or country during the tax year.
Part I: Computation of Income Subject to Tax by Both Arizona and the Other State or Country
- Line 1: Enter a description of each item of income that was taxed by both Arizona and the other state or country.
- Line 2: Enter the total amount of each income item that is reportable to both Arizona and the other state or country.
- Line 3: Enter the portion of the income item included in Arizona adjusted gross income (AGI) or Arizona taxable income, as applicable.
- Line 4: Enter the portion of the income item included in the other state's or country's equivalent of adjusted gross income or taxable income.
- Line 5: Complete the required calculations for each income item as instructed on Form 309 to determine the amount of income subject to tax in both jurisdictions.
- Line 6: Enter the total income subject to tax by both Arizona and the other state or country. If the computed total is less than zero, enter zero.
Credit Limitations
You may not claim this credit for the following:
- income taxes paid to any city or county, and
- interest or penalties paid to another state or country.
For tax year 2025, as an Arizona resident, nonresident returns filed with the following states qualify for the credit for the pass-through taxes paid on behalf of the Arizona resident.
Alabama, Arkansas, Colorado, Connecticut, District of Columbia, Georgia, Idaho, Illinois, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Utah, and Wisconsin.
Important Notes
- Only income taxed by both Arizona and the other state or country qualifies for consideration on Form 309.
- Income must be properly reported on both the Arizona return and the return filed with the other jurisdiction.
- Form 309 is used to calculate the allowable credit for taxes paid to another state or country and is subject to the limitations provided in Arizona law and the form instructions.
Source:
Form 309 - Credit for Taxes Paid to Another State or Country
Disclaimer: Always verify details with the official forms and instructions from the Arizona Department of Revenue or your state’s Department of Revenue. For complex tax situations, consult a CPA or tax attorney.