How do I handle taxes in this situation: I live and work in AZ, but my employer is in UT and my paycheck has UT tax withholding?

[brettcthorpe-gma]

Question says it all--just trying to figure out why in the world it looks like I have to pay taxes in both states when I literally never place a foot in UT.

[xmasbaby0]

File a non-resident tax return for Utah, then file your AZ return.

[Hal_Al]

Q. Just trying to figure out why in the world it looks like I have to pay taxes in both states when I literally never place a foot in UT.

A. Identify your UT salary as not being UT source income.  You should get a full refund.  But, as a full year AZ resident, you will pay AZ tax on that income. 

Ask your employer to stop withholding UT tax, so you don't have to file a UT return every year.

[TomD8]

Your income is not taxable by UT, but it is fully taxable by AZ.  Ask your employer to cease withholding for UT and - if they are not doing so already - to start withholding for AZ.

If your employer is unable to withhold AZ taxes, you'll need to begin making quarterly estimated tax payments to AZ.  See this for details:

 https://www.azdor.gov/sites/default/files/media/PUBLICATION_2013_012.pdf