Because of MSRRA, you will only need to file a Federal Return and a return with the state of Colorado. See the following from TurboTax FAQ: Military Spouses and State Taxes:
… … to qualify under the MSRRA, the following conditions must be met:
The service member is stationed, in compliance with military orders, in a state that is not his resident state,
The nonmilitary spouse is in that state solely to live with the service member, and
Both the service member and spouse have the same resident state.
When the nonmilitary spouse meets the above qualifications, their wages from services performed in that new state will only be taxed in their resident state, not by the state they are currently living in.
IMPORTANT: when living in a non-resident state, the spouse needs to check the state laws to determine if they need to declare their non-residency for withholding purposes. This may be required by their employer on an annual basis.
Since you are self-employed, Arizona withholding should not be an issue. However, if you do take a W-2 job in Arizona, you will want to consult with this brochure regarding MSRRA, tax withholding, and residency. See AZDOR Publication 705.
