Should I care?
Probably not. I say that as somebody not specifically familiar with the AZ forms. But, the general rule is: Your state will tax all the dividends except the dividends from municipal bonds from your state.
In TurboTax, when asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state" (at the bottom of the scroll down list) and enter the remaining dollar amount (do not go to the effort of entering the individual other states...that's probably the source of the error.).
