In Arizona, "additions to income" are extra amounts you may need to include when figuring out your state taxable income. These additions adjust your federal adjusted gross income (AGI) because Arizona tax rules are different from federal rules in some areas.
You might need to add certain types of income to your Arizona state tax return, such as:
- Income that’s not taxed federally but is taxable in Arizona
- Deductions allowed on your federal return that Arizona doesn’t recognize
The following types of income may need to be added to your Arizona state return:
Partnership Income (Line 16)
If the amount on line 3 of your Form 165, Schedule K-1 is a positive number, list this amount as an addition to income on your Arizona state return.
Total Federal Depreciation (Line 17)
Enter the amount of depreciation that you deducted on your federal return. If there is an entry made here, be sure to add this as a subtraction as well. See instructions for this line to figure out the amount you can subtract.
Non-Arizona Municipal Interest (Line 15)
Report the amount of interest income you received from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return.
Program Entry
- State Section
- Edit Arizona return
- Additions to Income
What are Other Additions to Income?
- 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 2025
- 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
- Other Adjustments
For a detailed list of Other Additions to Arizona Gross Income, Line 18, please click here.