There is no subtraction. Unemployment benefits are taxable in Arizona with the exception of railroad unemployment benefits and railroad sickness payments paid by the Railroad Retirement Board;
You can claim a credit for tax paid to Illinois on your Arizona return.
2021 Resident Personal Income Tax Return
Arizona did follow federal law in 2020 and allowed you to subtract the first $10,200 of unemployment benefits but that was a one year deal for federal and state.
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