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June 1, 2020
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California resident work in Arizona

  • June 1, 2020
  • 1 reply
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I am a California resident that  worked in Arizona, I want to know how to get my tax withheld by Arizona credited or refunded in Turbo tax. I tried to use the Other State Tax credit in the California return but it doesn't allow me select the Arizona state.

 Thanks,

yykk

Best answer by Opus 17

First, you have to prepare an Arizona non-resident return that lists only your income earned in the state of Arizona. You owe Arizona income tax on this income. Then, you prepare a California state resident return that lists all your worldwide income and you pay California state income tax on all your income. You will get a credit for the tax you paid in Arizona, so your combined tax bill will not be any larger than if you paid California tax only.  In TurboTax, you have to prepare the Arizona nonresident return first in order for the credit to flow properly to the California state return.

1 reply

Opus 17Answer
Employee
June 1, 2020

First, you have to prepare an Arizona non-resident return that lists only your income earned in the state of Arizona. You owe Arizona income tax on this income. Then, you prepare a California state resident return that lists all your worldwide income and you pay California state income tax on all your income. You will get a credit for the tax you paid in Arizona, so your combined tax bill will not be any larger than if you paid California tax only.  In TurboTax, you have to prepare the Arizona nonresident return first in order for the credit to flow properly to the California state return.

February 14, 2022

Unfortunately I prepared my California return before my Arizona return. Do I have to delete my California return and re-enter the information to get the Arizona payment credited to my California return?  or can I manually enter the amount somewhere?

February 14, 2022

@beckyb You can just enter the tax paid to Arizona when you go through the credit for taxes paid to another state routine in TurboTax. You can look on the Arizona tax summary to determine what the tax amount is. 

 

While working on your return in the state section of TurboTax:

 

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

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