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Live in CA, work in AZ.
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.
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Live in CA, work in AZ.
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.
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