No, enter your non-resident state first (in your case California). You are correct in that the order of state returns does matter. When you enter your CA information regarding your NQSOs, TurboTax will calculate the tax due. Then, when you complete your Arizona return, TurboTax will inquire about tax you paid to other states--California. You are correct in that Arizona will give you a credit for having paid CA tax on the NQSOs. Given the differences in tax rates, it's likely your credit will substantially reduce or eliminate your AZ tax.
In the My Info section of TurboTax, make sure to indicate that you earned money in more than one state, i.e., CA. If you are using TurboTax CD/download, you enter your personal information in the Personal Info section.
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