For accurate calculation of the Arizona
Credit for Taxes Paid to Another State, you should enter your pro-rata share of the tax paid on your behalf by the partnership or S Corporation (the Entity). This tax amount is limited to the lesser of:
- The amount actually paid by the Entity, or
- The amount of the other state's individual income tax had the Entity not elected to pay the tax at the entity level.
How do I know if I had pass-through income taxed at the entity level?