If my husband is military and state residence is AZ but we lived and worked in CA due to military why do I have to pay CA state taxes

Here's a explanation of why you might need to pay California state taxes despite your husband's military status and Arizona residency:

Military Spouses Residency Relief Act (MSRRA)

• The MSRRA allows military spouses to maintain their state of legal residence for tax purposes, even when they move due to military orders
•  However, certain conditions must be met:
  • The service member is living on military orders in a state that is not their resident state
  • The spouse is in that state solely to live with the service member
  • Both the service member and spouse have the same resident state

California Tax Requirements

• Despite the MSRRA, if you earned income in California, you might still be subject to California state taxes on that income
  • California taxes nonresidents on income earned within the state, such as wages from a job in California
  • California may require you to file a return if you have California-sourced income. Military pay isn't California-sourced income.
    • California income can be from:
      • Non-military wages
      • California sales
      • Rental property

Steps to Address This

1. Verify Residency:Ensure you meet MSRRA conditions to claim Arizona as your state of legal residence.
2. File Nonresident Tax Return: If you earned income in California, you may likely need to file a nonresident tax return to report California-sourced income and pay taxes due.

Also...DO Not indicate on the My Info page that you "moved" to CA. For both of you, you indicate you were AZ residents all year. (your actual mailing address in CA is immaterial to your AZ residency/domicile state)