@fastlaura --
An AZ resident who works in CA must file a non-resident CA income tax return, reporting the income they earned in CA. This is in addition to filing their home state AZ return, on which they would report all their income, including that earned in CA.
In this situation, the taxpayer may claim an "other state credit" on their CA return for the tax paid to AZ on the income taxed by both.
The credit prevents double taxation, which is prohibited by federal law.
In TurboTax, the taxpayer would complete the resident state AZ return first, before completing the non-resident CA return. This will allow the program to calculate and apply the credit correctly.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
