Note that AZ uses the same definition of "gross income" as the feds. It is your income before business deductions. That is, it is not just your net profit.
From the AZ web site: "For Arizona filing purposes, full-year residents figure their gross income the same way they do for federal income tax filing purposes."
From the federal form 1040 instructions (pg 9): "Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States"...... "Gross income from a business means, for example, the amount on Schedule C, line 7"
