AZ and CA are "reverse credit" states. Normally an "other state credit" is granted by the taxpayer's resident state, for taxes paid to a non-resident state. In "reverse credit" states, the credit is granted by the non-resident state.
This means that you will claim a credit on your non-resident CA return for the tax you paid to AZ on the income taxed by both.
In reverse-credit situations in TurboTax, one should complete the resident state return before the non-resident state return, which is just the opposite of usual.
Another aspect of the CA-AZ tax agreement is that CA residents who work in AZ can request to have no AZ taxes withheld from their pay by filing AZ Form WEC with their AZ employer.
https://azdor.gov/forms/withholding-forms/withholding-exemption-certificate
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
