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dj4
Level 1

Filing taxes in multiple states

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?
1 Best answer

Accepted Solutions
TomD8
Level 15

Filing taxes in multiple states

"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.

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3 Replies
Anonymous
Not applicable

Filing taxes in multiple states

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.  

TomD8
Level 15

Filing taxes in multiple states

"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.
dj4
Level 1

Filing taxes in multiple states

Many, many thanks for the excellent answer & support.

 

dj4

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