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June 1, 2019
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I am a resident of Arizona but I work in California. Do I need to file to taxes in both states?

  • June 1, 2019
  • 1 reply
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Best answer by TerryA

Yes you do: Arizona, as your resident state, gets to tax your world-wide income. California gets to tax your compensation because it was earned there.

The nonresident TT/Calif will begin to prepare a tax credit for the compensation that both states are taxing to help avoid double taxation. You will likely have to help TT/Calif by entering the amount of AZ income that CA is also taxing (your Calif compensation). Prepare your resident AZ return first, then the nonresident CA return.

In TT/California's Nonresident Adjustments, be sure to only allocate as Calif-source your compensation there. All other income items should be entered as -0- Calif-source.

1 reply

TerryAAnswer
Employee
June 1, 2019

Yes you do: Arizona, as your resident state, gets to tax your world-wide income. California gets to tax your compensation because it was earned there.

The nonresident TT/Calif will begin to prepare a tax credit for the compensation that both states are taxing to help avoid double taxation. You will likely have to help TT/Calif by entering the amount of AZ income that CA is also taxing (your Calif compensation). Prepare your resident AZ return first, then the nonresident CA return.

In TT/California's Nonresident Adjustments, be sure to only allocate as Calif-source your compensation there. All other income items should be entered as -0- Calif-source.

May 17, 2022

What taxes do I pay if working & living in CA & owning a nonrental home in AZ? (Income ONLY CA - Property is home in AZ)

Hal_Al
Employee
May 17, 2022

@grantd5150 

You file and pay only CA income tax, since you (apparently) have no AZ source income.  Just owning a 2nd home in another state doe not subject you to income tax in that state.