Being away for school is considered a temporary absence and doesn't effect residency.
She is a full-year resident of Georgia. Georgia will tax all her income but give her credit for taxes paid to another state. She will also file non-resident state returns for any state she worked in.
Where you physically work determines the state source income, not where the company is located. (For example, Walmart is based in Arkansas, but you don't pay Arkansas tax unless you physically worked there.) It sounds like she worked in Alabama while earning the income reported on both W2s. Is that correct? Or did she physically work in Arizona also?
She would file a non-resident Alabama return. She likely has withholdings from Alabama reported in box 17.
It sounds like the Arizona W2 only reports state information, so if she physically worked in Arizona, she would also file a non-resident Arizona return.
I'm a bit confused on the W2 situation, so if you you have additional questions, please clarify the W2 information.
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