DanielV01
Expert Alumni

State tax filing

It depends.  It is Arizona income from the standpoint that it was earned working in that state.  If you were also living in Arizona at the time it was earned, then it is claimed exclusively to Arizona.  However, if you had already moved to California, and came back to finish a job in Arizona, then it is Arizona nonresident income and California resident income.  

Based on your question, it will be easier to claim that income as Arizona nonresident income.  While California taxes the income also, they will give you a credit for the tax you must pay to Arizona on that income.  Otherwise, you would have to file part-year returns to California and Arizona, which could be a little more complicated to do.  (And CA might still ask to tax it).

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