Unfortunately you were a full year resident of New Mexico. You're right about that. New Mexico decides that anyone who lives in New Mexico for 185 days or more is a resident for the full year. It's not fair but there it is.
You need to do a resident return for New Mexico and a part-year resident return for Arizona. Do the New Mexico return first. New Mexico will tax everything and you'll owe them a bunch.
Then, when you do your Arizona return, you will take a credit for taxes paid to other states. You've already figured out your percentages. You're going to be paying taxes in New Mexico on all of the income being taxed by Arizona. 41.4737% of the taxes that you pay to New Mexico will also be the tax that Arizona wants to charge. That credit should wipe out your Arizona tax bill for this year because New Mexico's tax rate is slightly higher.
@rducotey
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