Fiduciary Income Tax Highlights

2023 HIGHLIGHTS

Due date for 2023 Calendar Year Filers

The 2023 Fiduciary tax return (Form 141AZ) is due by midnight on April 15, 2024. If you file under a valid extension, your extended due date will allow an additional 5 ½ months to September 30, 2024 to file Form 141AZ. Because September 30, 2024 falls on a weekend, you have until October 2, 2024 to timely file the Arizona 141AZ tax return.

NOTE: A Qualified Funeral Trust (QFT) using a federal extension (Form 7004) will be allowed the same 6-month extension period to file Arizona Form 141AZ.

Estates and Trusts 2023 Tax Rates

For tax year 2023 the tax rate for estates and trusts was adjusted. A.R.S. § 43-1311 provides the tax rates subject to estates and trusts. The tax rate for 2023 is 2.5% of the estate or trust’s taxable income. There is no longer a separate tax table for estates or trusts.

The tax liability is calculated on 2023 Form 141AZ, line 17.

Form 141AZ Changes

There are two new lines on Form 141AZ to report net fiduciary adjustments allocated to the fiduciary. Line 10a is used to report positive adjustment. Line 10b is used to report negative adjustment.

Line 11 was modified to include instructions for the fiduciary to compute the “Subtotal” before any other additions or subtractions.

Schedule C, Fiduciary Adjustment Allocation, line C16, was modified to report the positive or negative adjustment on page 1 (lines 10a or 10b).

There are two new fiduciary adjustments decreasing federal taxable income.

• Virtual Currency and Non-Fungible Tokens
• Gas Fees or Non-Fungible Token Basis

For more information on these two adjustments, see the instructions for completing Schedule B, line B9, Other Subtractions from Federal Taxable Income.