I receive alimony from North Dakota. If I pay ND taxes on that, and Federal taxes, why do I also have to pay taxes on it in Arizona

[ToddL · Accepted solution]

You should not have to pay ND tax on alimony paid from that state. As a non-resident of ND, you are only subject to tax on gross income from North Dakota sources.

From the ND DOR website:

For a nonresident, “gross income from North Dakota sources” includes the following:

•  Compensation for services performed in North Dakota, such as wages, salaries, tips, commissions, and fees.

•  Income from tangible property in North Dakota, such as rents, oil and gas royalties, and gain from the sale or exchange of the property.

•  Income from a trade or business carried on in North Dakota, whether as a sole proprietorship, partnership, S corporation, or limited liability company treated like a partnership or S corporation.

•  Income from an estate or trust, but only to the extent the income is derived from tangible property or a trade or business in North Dakota.

•  Income from gambling activity carried on in North Dakota.