The Arizona Payments and Penalties section is used to enter certain payment and penalty-related information that may apply to your Arizona return. Some amounts are entered manually, while others are automatically carried from your Federal return.
What Can Be Found in the Arizona Payments and Penalties Section? 💰
This section includes fields for:
Refund Applied to Next Year's Taxes 🔄
Use this field to apply all or part of your Arizona refund to your 2026 Arizona tax return.
- Complete and save your Arizona return before entering this amount.
- The refund generator will display the available refund once the return has been saved.
- If the amount entered exceeds the available refund, or if the return shows a balance due, the amount will not be transferred to the Arizona return.
Claim of Right 📋
The Claim of Right credit may apply when income reported and taxed in a prior year must later be repaid. Taxpayers who qualify may be entitled to a credit or adjustment on their Arizona return.
Extension Payment Amount ⏳
If an extension was filed, enter any additional Arizona tax paid with the extension.
- Enter only the amount actually paid with the extension.
- This amount helps ensure the correct calculation of any refund or balance due.
What Will Not Appear in the Payments and Penalties Section? 📌
Some payment-related amounts will not display in this section because they are automatically pulled from your Federal return. These include:
- Arizona state income tax withholding
- State payments reported on Forms W-2 and 1099
- Other eligible payment information transferred from Federal return data
✅ To ensure these amounts transfer correctly, verify that the state sections of all applicable W-2s and 1099s have been completed accurately.
Additional Notes 📝
- Not all taxpayers will need to enter information in this section.
- Most withholding and payment information is transferred automatically from the Federal return.
- Review all entries carefully before filing to ensure accurate refund and balance due calculations.