Calculating AZ corporate apportionment in ProConnect Tax

There are two common apportionment methods for multi-state corporation income tax returns filed to Arizona: standard apportionment and sales factor-only apportionment.

1. Standard Apportionment: All non-air carrier taxpayers are allowed to use Arizona's standard apportionment formula, which double-weights the sales factor.
2. Sales Factor-Only Apportionment: All non-air carrier taxpayers may use Arizona's sales factor-only apportionment formula, which is determined by dividing Arizona Sales by Everywhere Sales.

How ProConnect Tax calculates state apportionment for AZ Form 120

ProConnect Tax will automatically calculate state apportionment when you input the following:

1. From the Input Return tab, go to State & Local ⮕ Apportionment ⮕ AZ Apportionment
2. Make an entry in the field Automatic apportionment 1=yes or 2=no [Override].
3. Type 2 for the standard method and 3 for sales factor only in Arizona apportionment: 1=air carrier, 2=standard, 3=sales factor only [Override].