Live in CA, work in AZ.

[kkirkaldy00]

I live in CA, but the hospital I work for is in AZ so I am classified as an AZ employee that works remote.  Do I have to pay both AZ and CA income taxes.  My employer says taxes only come out of the state you work in, not the state you live in.

[Critter]

If you worked in one state and lived in another, you will need to file a Non-resident return for the state where you worked and a Resident return for the state where you live.  Some states, e.g. Florida, Nevada, Texas, Washington, do not have a state tax, in which case you will only file a return for the state that has a tax.

Don't worry - you'll only pay taxes on your state earnings to one state.  Your Resident state must offer you a credit for the taxes you pay to other states. 

Remember to let TurboTax know you worked in other states - edit "My Info" in your Federal online return - and to complete your Non-resident return before beginning your Resident return, in order to properly calculate the credit your home state owes you.