Per our Tax Expert, @DanielV01, if it is California that is your home state, you will not need Form 309. The reason is because California and Arizona have a reverse credit agreement. Normally when you live in one state and work in another, both states are allowed to tax you. However, your resident state will allow you to claim a credit for the tax you must pay to the nonresident state for the income you earn working there, to reduce the effects of double-taxation.
- If you worked in one state and lived in another, you will need to file a Non-resident return for the state where you worked and a Resident return for the state where you live.
- Don't worry - you'll only pay taxes on your state earnings to one state.
However, if the situation is reversed where your resident state is Arizona and you work in California, you will need the Form 309 for AZ to report CA income.
@cminor50
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
