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Solved

Filing taxes in multiple states

Forum|Forum|6 years ago
September 20, 2019
3 replies
29 views

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?

Best answer by TomD8

"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

A

Anonymous

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.

Answer

Alumni - Champ

"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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

dj4Author

Level 2

Many, many thanks for the excellent answer & support.

dj4