No, you should only pay income taxes to Arizona (AZ). If you live in AZ and work out of your home for the Colorado (CO) based company, you are a remote
employee and you should only have to pay state income taxes to AZ. If your employer withheld taxes for CO, you will need to file a CO nonresident income tax return to get your money refunded. Click on
More info
Generally, you’ll need to file a CO nonresident state
return if you made money from sources in a state you don’t live in. Some
examples are:
- Wages
or income you earned while
working in that state;
- Out-of-state
rental income, gambling winnings, or profits from property sales;
- S
Corporation or partnership income;
- Beneficiary
income from a trust or estate;
- For
active duty military: non-military income earned outside your state of legal residence.
You don't need to report interest income from an out-of-state
bank account on a nonresident return. It only needs to be reported on
your federal and resident state return.
Related
Information:
