Yes, I am filing a resident return for Illinois and a nonresident return for Arizona.
This is a first time filing for Arizona for me; I had done Illinois first, as one state is included in Turbotax Deluxe and initially was going to do the Arizona return at the AZ Dept of Rev online site, but then decided it might be easier to buy the Turbotax Arizona state return. But as described, with Turbotax Illinois automatically inserting the HSA deduction in CR form, line 20, column B, and the HSA deduction was larger than the income derived in AZ, Illinois assumes I paid no tax to AZ, and denies the credit for the AZ tax I do have to pay, as it seems I should not take the HSA deduction in AZ also. So I wouldn't say it comes out in the wash. I had to manually override the CR Line 20 Column B to zero in order to properly get the tax credit in IL for the taxes paid in AZ.
