Thanks! This is a tremendous help. I still have the problem that I'm not sure the California filing is actually correct, because I think Arizona has a lower tax rate than California. Also, the Arizona form doesn't have a separate entry for income from other-state sources so the LT cap gain from the home sale is just lumped in with other LT cap gain. This is certainly confusing so we it would really helpful if the TurboTax program explained what it is doing. I'll just assume that TurboTax did the right thing and let California try to get what it's owed from Arizona.
