If you work remotely, the income is considered sourced where the work in performed. Therefore, the work you did remotely while in IA will be considered IA-sourced income. You will need to report any income earned while working in Iowa on a nonresident IA state return. Since you have no intention to change your state of residence, you will also need to file an AZ resident state tax return.
You
will need to file as non-resident for IA (for your IA source income only - your
IA remote wages). You will also need to file a AZ resident state tax return (for all
income from all sources including IA wages). You will get a state tax credit in
AZ for any IA state taxes that you paid on your nonresident IA state tax
return.
You
will want to work on your non-resident IA state tax return first. You will then
take a tax credit from your non-resident AI taxes on your resident AZ state tax
return. (Please note that you will only get a tax credit for your IA taxes up
to the amount of AZ taxes that would have been paid if the income was earned in
AZ).
Just
follow the TurboTax guide when working on your states (remembering to do your
non-resident state return first) and TurboTax will do all the calculations and
credits to your resident states return
Here
is additional information about filing in multiple states (select "see
more answer" to view the entire attachment)
https://ttlc.intuit.com/replies/3300797
