State tax filing

AZ municipal Interest usually refers to any AZ-sourced Municipal bonds you may own...such that the interest was received by you from Bonds issued by an AZ-city/county/state government entity.

To the extend that the AZ-Muni-interest did come from AZ-based bonds, that interest would not be taxable by AZ.

1)  IF you own individual  bonds, where the total Muni-interest was reported in box 8 of a 1099-INT form, any interest from AZ bonds can be broken out separately from the rest of the $$ in box 8, adn might (possibly) give you a bit of income deduction for your AZ taxes

2)   IF you own  Mutual Bond Funds, where the total Muni-interest was reported in box 11 of a 1099-DIV form, any interest from AZ bonds can be broken out separately from the rest of the $$ in box 11, and also might (possibly) give you a bit of income deduction for your AZ taxes.

For both cases 1 and 2 above, you would have to identify the exact $$ amount that came solely fro AZ bonds form the information the Broker sent you...If the $ amount from AZ bonds is small, or you cannot calculate the exact AZ amount, then you just signify that it all came from "Multiple States" at the end of the list of states   (Desktop software uses the term "More than one state" )

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Example of a Muni break-out for an NC resident  (IF you have Muni-interest from a US territory, that can be broken out too since your state would not tax ta hat interest either):