Hello,
I am a little confused on the tax agreement between AZ and CA. Looking for clarification.
I am an AZ resident, working for a couple of months (contract) in CA for a CA employer. Could you guys let me know which of the three scenarios below are most likely to be the case?
- (AZ + CA taxes) From my understanding, I will pay both: AZ taxes AND CA taxes as a nonresident on the CA income. This is different than the other way round where CA residents do not pay AZ taxes while working in AZ.
- (AZ only ) I asked my accountant and she said the agreement was mutual; AZ resident wouldn't pay CA taxes, like CA residents don't pay AZ taxes.
- (CA only, AZ credit) I have also heard that I would get a credit on the CA taxes I already paid from AZ, making my total tax burden the same as CA residents (CA bracket is higher than AZ).
I am just trying to understand the situation as I know the method of filing changes and which return you file first if crucial as well.
Thank you!
