Arizona doesn't tax an inheritance, but any interest or other income from the Arizona-source inheritance is taxable. See the 2016 Nonresident Personal Income Tax Return instructions for the filing thresholds to see if you need to file a return:
https://www.azdor.gov/Portals/0/ADOR-forms/TY2016/10100/140NRBooklet.pdf
Thanks so much Turbotax Anna! My Mum held a note for a property she had sold so the interest income on it was $10,530 for my share as reported on the k-1. Do you think I'm under the limit to have to file in AZ ? Thanks!
It depends on your filing status and gross income. Please scroll down to the seventh page of the Booklet in the link to the "Do you have to file?" chart. For your filing status, if either box applies to you, then you have to file.
Arizona doesn't tax an inheritance, but any interest or other income from the Arizona-source inheritance is taxable. See the 2016 Nonresident Personal Income Tax Return instructions for the filing thresholds to see if you need to file a return:
https://www.azdor.gov/Portals/0/ADOR-forms/TY2016/10100/140NRBooklet.pdf