@Superholez50 wrote:
Just not sure what the correct path is for the coming tax year.
The correct path is for you and your wife to meet with a local tax professional who can examine all aspects of your situation in detail and advise you on how to handle it. With a situation as complex as yours, you need continuing professional guidance. Your situation is much too complicated to deal with in an online forum like this.
Residency is not determined by what you "claim." It's determined by "facts and circumstances." Each state has its own definition of a resident for income tax purposes (which can be different from the definition for other purposes). Since states have different definitions of a resident, it is possible to be considered a resident of two states at the same time. Here are links to information about the California and Arizona definitions of a resident.
FTB Publication 1031, 2023 Guidelines for Determining Resident Status
Arizona Individual Income Tax Procedure ITP 92-1, Procedure For Determining Residency Status
You should also discuss with your tax professional whether it makes sense to continue filing separately.
