Where did you receive the distribution? Were you still living in MA or were you living in AZ? This will determine were you report the income from the distribution.
You will need to prepare a part-year return for MA for your income earned through May and then a part-year AZ return for the income earned from June through December. If you were a non-resident of MA at the time you received the distribution, the distribution would be taxed in AZ.
If distribution received as a MA resident, file part-year MA resident return and include distribution as income for MA. Tax amount in box 16 will offset MA tax.
If distribution received as AZ resident, include distribution on AZ part-year return and pay AZ tax. Tax amount in box 16 of 1099R will be refunded to you from part-year MA return.
