JohnB5677
Expert Alumni

State tax filing

The process you should follow is:

  1. Both Arizona and Massachusetts are part year returns
  2. Since you worked in Arizona the entire time it will all be taxed in Arizona.
  3. Only the portion you earned while living in Massachusetts should be taxed in Massachusetts.
  4. You are entitled to a credit for taxes paid to other states.
  5. But only based on the percentage amount that was earned in MA.

Example:  You earned a total of $10,000.  20% ($2,000) was earned while living in MA.  All of the $10,000 is taxed in AZ because you worked there.  $2,000 is taxed in MA because you lived there pat year.  If your tax bill (not refund) in AZ was $1,000, you can claim 20% ($200) as taxes paid in another state for MA.

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