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State tax filing
You will need to prepare the Arizona return first. When you do, Arizona will say that you owe an amount to them. If you didn't have any taxes withheld for Arizona, then you will enter this number in the taxes paid to another state section of the California return. This amount will subtract from what you would otherwise pay to California, and you will get additional California refund as a result, but you will have to pay much of this refund to Arizona to cover your tax due.
There is a way to adjust this. Please see the following article, and look for the form you can file with your California employer so they are withholding Arizona versus California tax: Which states have reciprocal agreements?
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May 7, 2021
9:55 AM