Arizona Form 141AZ is the state fiduciary income tax return that estates and trusts file with the Arizona Department of Revenue. A fiduciary must file it for any tax year in which the estate or trust has Arizona taxable income, or gross income of $5,000 or more.1Arizona Legislature. Arizona Code 43-304 – Fiduciary Returns For a calendar-year estate or trust, the 2025 return is due April 15, 2026, and tax is calculated at a flat 2.5% on Arizona taxable income.
Who Has to File
Under A.R.S. § 43-304, the fiduciary of an estate or trust must file Form 141AZ if either of these is true for the tax year:
- The estate or trust has any Arizona taxable income after deductions, even one dollar.
- Gross income is $5,000 or more, regardless of what taxable income looks like after deductions.
Both thresholds apply to resident and nonresident estates and trusts.1Arizona Legislature. Arizona Code 43-304 – Fiduciary Returns For a nonresident estate or trust, income distributed to nonresident beneficiaries counts as Arizona-source only when it comes from income the entity itself earned in Arizona.2Arizona Legislature. Arizona Code 43-1093 – Nonresident Beneficiary of Estate or Trust Income The same statute also requires a fiduciary to file on behalf of an individual (such as a decedent’s final return) whenever that person would have had to file under § 43-301. Bankruptcy estates that hit the $5,000 gross income mark must file as well.3Arizona Department of Revenue. Arizona Form 141AZ – 2025 Arizona Fiduciary Income Tax Return Instructions
The fiduciary is personally responsible for filing on time, calculating the tax, and getting income-reporting documents to beneficiaries.
Filing Deadline and Extensions
Form 141AZ is due the 15th day of the fourth month after the tax year ends. For calendar-year filers, that’s April 15, 2026, for the 2025 tax year.4Arizona Department of Revenue. Fiduciary Income Tax Highlights Fiscal-year filers adjust the deadline to four months after their fiscal year closes.
Arizona recognizes a valid federal extension automatically. For fiduciary returns, the federal extension adds five and a half months, which pushes the Arizona filing deadline to September 30 for calendar-year filers.5Arizona Department of Revenue. Arizona Fiduciary Tax Ruling FTR 17-1 The catch: at least 90% of the tax liability must be paid by the original due date. If the fiduciary underpays and files later under the extension, Arizona charges an extension underpayment penalty on top of the remaining balance.6Arizona Department of Revenue. Making Payments and Filing Extensions The extension buys time to file paperwork, not time to delay payment.
How the Tax Is Calculated
Arizona starts from the federal return. The fiduciary completes IRS Form 1041 first, carries the federal taxable income to Form 141AZ, and then applies Arizona-specific additions and subtractions.
Common additions include interest on bonds issued by other states (Arizona taxes it even when the federal government doesn’t) and certain depreciation differences between federal and Arizona rules. Common subtractions include interest on U.S. government obligations and state income tax refunds that were already pulled into federal income.3Arizona Department of Revenue. Arizona Form 141AZ – 2025 Arizona Fiduciary Income Tax Return Instructions Income distributed to beneficiaries reduces the estate or trust’s taxable income, because that income shifts onto the beneficiaries’ own returns.
Arizona taxes whatever remains at a flat 2.5%. Legislation passed in 2025 (HB 2918) drops the rate to 2.47% for tax years beginning January 1, 2026.7Arizona Legislature. HB2918 – Senate Fact Sheet
Estimated Payments
Arizona does not require estates or trusts to make estimated income tax payments. A fiduciary who wants to pay incrementally can use Form 141AZ-ES, but there is no penalty for skipping it.8Arizona Department of Revenue. Form 141AZ-ES Instructions Federal rules are different. The IRS requires estimated payments when the estate or trust expects to owe at least $1,000 in federal tax after withholding and credits, with 2026 due dates of April 15, June 15, and September 15, 2026, and January 15, 2027.9Internal Revenue Service. Estimated Income Tax for Estates and Trusts
Reporting Income to Beneficiaries
Arizona has its own Schedule K-1 (Form 141AZ Schedule K-1), separate from the federal version. The fiduciary completes one for each resident or part-year resident beneficiary, showing that person’s share of income, deductions, and credits passed through from the estate or trust.10Arizona Department of Revenue. Form 141AZ Schedule K-1 Instructions One copy goes to the beneficiary, one copy is filed with Form 141AZ, and the fiduciary keeps a copy for the entity’s records. Beneficiaries use these to prepare their own Arizona individual returns, so prompt delivery matters.
How and Where to File
Arizona accepts Form 141AZ electronically through approved e-file software, but does not require it for fiduciary returns. Paper filing remains available. Always use the form for the correct tax year; line numbers and adjustment rules change from year to year, and the current form and instructions are posted on the Department of Revenue website.11Arizona Department of Revenue. Arizona Fiduciary Income Tax Return
For paper returns, the mailing address depends on whether a payment is enclosed:
- With payment: Arizona Department of Revenue, PO Box 52016, Phoenix, AZ 85072-2016
- Refund, no tax owed, or no payment enclosed: Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138
These addresses apply to both original and amended returns.12Arizona Department of Revenue. Arizona Fiduciary Income Tax Return If you mail a paper return with a check, keep a copy of the return and send it by certified mail with return receipt. The few dollars it costs can save weeks of trouble if the department later says it never received the filing.
Penalties for Filing or Paying Late
Arizona charges separate penalties for late filing and late payment, and they can stack:
- Late filing: 4.5% of the unpaid tax for each month or partial month the return is overdue, capped at 25% of the tax due.
- Late payment: 0.5% of the unpaid tax for each month or partial month the payment is late, capped at 10%.
Either penalty can be waived if the fiduciary shows reasonable cause for the delay rather than willful neglect.13Arizona Legislature. Arizona Code 42-1125 – Civil Penalties; Definition Reasonable cause generally means something genuinely outside the fiduciary’s control, like serious illness or records destroyed in a disaster. Being busy or unaware of the deadline doesn’t qualify.
Interest accrues on unpaid tax from the original due date, separately from the penalties. A fiduciary who knows the return will be late should still pay as much of the estimated tax as possible by the due date, since the late-payment penalty applies only to the unpaid balance.14Arizona Department of Revenue. Filing Notices of Penalties and Interest Paying 100% of what’s owed on time and filing a month late limits the damage to the filing penalty alone.