As an AZ resident, they tax all income and will give you a credit related to the Iowa tax. The credit will be the lower of the state tax liabilities on the same IA income
You prepared the IA return first to create the tax liability. The program will include the IA state liability to be a part of your AZ return on form 309, which shows the allowed AZ credit and the computation. This carries to Form 301, part 1, line 3.
Which carries with the other credits to your main form, line 51.
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