If you live in AZ then your income is subject to AZ state income tax, even if it is being sent from another state. You no longer live or work in OR so you do not pay OR income tax. AZ does tax certain kinds of retirement income. Enter your 1099R into your federal return. The information flows from the federal return to the state return, and the software will use the AZ tax laws to calculate how much--if any-- of that pension income is taxable in AZ.
To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
