Non resident income California and New Mexico
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Returning Member

Non resident income California and New Mexico

My home state is Arizona, but I worked as a travel nurse in California and New Mexico. I have entered State tax returns for Arizona (resident) and California and New Mexico (non-resident). The Arizona state tax return is showing a balance due, and not applying a tax credit for the taxes I paid to California and New Mexico.  Should I have done the non resident returns before entering my resident state return?  I tried to delete the Arizona (resident) return and start over but there is no option to do this. 

3 Replies
Employee Tax Expert

Non resident income California and New Mexico

Yes, you should prepare your non-resident states first, then add your Arizona resident return.  To delete a state return in TurboTax Online, while logged in to your return:


  • Click on "State" on the hand side of your screen
  • You should be on the page that says "Let's get your state taxes done right"
  • In the upper center of the page, click on "Your State Returns"
  • You should see a list of states in your return, with the option to Delete.  Cick on Delete and confirm that's what you want to do.
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Level 15

Non resident income California and New Mexico

@miller4mi -- Here is the complication in your situation:  California and Arizona are "reverse-credit" states.  That means that your non-resident state of CA will give you a credit for the taxes paid to AZ on the portion of your income taxed by both.  ("Reverse-credit" because normally it's the home state that gives the credit.)


Therefore you should complete your home state AZ return before you do your non-resident CA return.


CA currently has reverse credit with Arizona (AZ), Guam (GU), Oregon (OR), and Virginia (VA).


See "California Nonresidents" in this reference:

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

Returning Member

Non resident income California and New Mexico

Hi thanks for this info.  I am using a downloaded version, not the online version.

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