Income from another state

[Mike-GR]

I live in Arizona no income here but I have a 1099 -NEC by working in California what is the right way to file my taxes

[KeshaH]

If you were a resident of Arizona for all of 2024, you will need to file an Arizona resident return and report all of your income even though you didn't earn any of it in Arizona. This is because your resident state taxes all of your income regardless of where it's earned.

You'd also file a California nonresident return and report your income there since you earned it within the state. This means the same income would be taxed twice, but one of the states will give you a credit to avoid double taxation.

Usually, your resident state gives you this credit - but due to a special agreement between California and Arizona, you'll actually get the credit on your California nonresident return. This means you should file your Arizona return first so that TurboTax can correctly calculate your other state credit on your California return.