topic Filing taxes in multiple states in State tax filing

Filing taxes in multiple states

dj4 — Fri, 20 Sep 2019 00:47:57 GMT

If I pay Arizona taxes on rental income in Arizona, do I also have to pay taxes on the Arizona rental income in my home state of California?

Re: Filing taxes in multiple states

Anonymous — Fri, 20 Sep 2019 01:05:18 GMT

yes but you get a California credit for some or all of the taxes paid to AZ on the same income. california schedule S

but for TT to work correctly, the AZ return must be prepared first.

Re: Filing taxes in multiple states

TomD8 — Fri, 20 Sep 2019 14:56:43 GMT

"but for TT to work correctly, the AZ return must be prepared first."

Normally it is correct to prepare the non-resident state return first. However, California & Arizona are reverse-credit states. This means that the non-resident state, AZ, will allow you to take a credit for taxes paid to your home state of CA on income that is taxed by both. Therefore, in this case you would complete your CA return first, before you do your non-resident AZ return.

See page 2 of AZ Form 309, which you can view here: https://azdor.gov/forms/tax-credits-forms/credit-taxes-paid-another-state-or-country

Re: Filing taxes in multiple states

dj4 — Fri, 20 Sep 2019 20:59:40 GMT

Many, many thanks for the excellent answer & support.

dj4