TerryA
Intuit Alumni

State tax filing

There are about 5 or 6 states such that between them it's the nonresident state that takes the other state tax credit.  AZ & CA are two of them.
So TT/AZ needs to know the $$ income that both AZ & CA are taxing (that's probably the entire amount of AZ income? What AZ income are you reporting? A rental?) and the CA tax on that income. For the tax $$, take that double taxed income, divide it by the Calif taxable income on Form 540 line 19, and multiply that fraction by the tax on line 48.