You report all your world-wide income on the state tax return where your permanent residence is located, regardless of where the source of the income is located. If you have changed your permanent location to Washington state, this is Washington state income (which has no state income tax).
The only income that would be taxable (as a non-resident) in Arizona would be certain types of income that are connected to Arizona. This includes things like:
- wages (if you physically worked in Arizona for 2 weeks, then 2/52nd of your wages would be taxable in Arizona.)
- rental income from property located in Arizona
- capital gains from sale of property located in Arizona
- Business income, if you do business in Arizona
Bank interest, dividends, and stock market trades are not considered "Arizona source" income even if the bank or company issuing the dividend is located in Arizona.
