Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in.
Withholding of Arizona state income tax from the commencement of employment is required for any resident employee physically working in the state of Arizona regardless of where the employer is based. Arizona law requires every employer to withhold Arizona income tax from those employees for services provided within Arizona. If an Arizona-based business hires an employee living in another state full-time or is no longer an Arizona resident, the employer is not required to withhold Arizona income tax from the employee's compensation because they are working in another state.
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