The only way you could deduct medical expenses paid from an HSA on your Arizona State tax return is if the money that you deposited into the HSA was taxable on your Arizona State tax return.
HSA contributions are subtracted from your W-2 box 1 wages if you make them through your employer and are never taxed. If you make after-tax contributions, they are deducted on the front page of your tax return before your adjusted gross income or AGI is calculated. Most states start with your federal AGI is the basis for your state tax return. Unless Arizona has some special procedure to add your HSA contributions back to your Arizona taxable income, then you cannot deduct medical expenses paid for with an HSA as Arizona medical expenses. You simply can't deduct money out of your income if it was never in your income in the first place.
