Arizona uses your federal adjusted gross income (AGI) as the starting point for your state tax return. In some situations, Arizona requires you to add certain amounts back to your income because state tax laws differ from federal tax laws. These amounts are called additions to income.
Most taxpayers won't have an addition to income. Only enter an amount if one of the situations below applies to you.
Common Arizona Additions to Income
Partnership Income Adjustment (Line 16)
If you received an Arizona Form 165 Schedule K-1 and line 3 shows a positive difference between federal and Arizona distributable income, enter that difference as an addition to income.
Total Federal Depreciation (Line 17)
Enter the total depreciation deducted on your federal return. If you enter an amount here, Arizona generally allows a corresponding depreciation subtraction adjustment on another line of the return.
Other Additions to Income (Line 18)
You may need to enter an amount if any of these apply:
- Married Persons Filing Separate Returns
- Ordinary Income from Lump-Sum Distributions
- Federal NOL carry forward from Non-AZ sources accrued while a non-resident
- Federal Capital Loss carry forward deduction incurred from Non-AZ sources prior to AZ Residency
- Items Previously Deducted for Arizona Purposes
- Non-Qualified Withdrawals From 529 College Savings Plans
- Amortizations or depreciation for child care facility before 1990
- Fiduciary Adjustment
- Claim of Right Adjustment for Amounts Repaid in 2026
- Claim of Right Adjustment for Amounts Repaid in Prior Taxable Years
- Claim of Right Adjustment for NOL
- Addition to S Corporation Income Due to Credits Claimed
- Adjusted Basis in Property for Which You Have Claimed a Credit for Investment in Qualified Small Businesses
- Sole Proprietorship Loss of an Arizona Nonprofit Medical Marijuana Dispensary included in Federal Adjusted Gross Income
- Americans with Disabilities Act - Access Expenditures
- Net Capital Loss derived from the exchange of one kind of legal tender for another kind of legal tender
- Addition for Expenses Due to Claiming Credit 312
- Adjusted Basis in Property for Which You Have Claimed a Credit for Agricultural Pollution Control Equipment (Form 325)
- Adjusted Basis in Property for Which You Claimed a Credit for Pollution Control Equipment (Form 315)
- Entity-level Income Tax Payment
- Motion Picture Production Costs
- Other Adjustments related to tax credits
- Special depreciation allowance for qualified property allowed under section IRC 168(n)
- Other Adjustments
Where to Enter It in the Program
- Go to State Section
- Select Edit Arizona Return
- Choose Additions to Income