State Filing

Forum|Forum|5 years ago
May 4, 2021
1 reply
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If I lived in Arizona all of 2020 but worked in California for the entire year, do I have to file Arizona State Tas?

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DanielV01

Level 15

Yes. You actually will file both an Arizona resident return and a California nonresident return. Arizona and California have a hybrid reciprocal arrangement called a reverse credit. In this arrangement, you pay all of your state tax to Arizona. California will give you a credit for the taxes you pay to Arizona. (It's called a reverse credit, because normally it's the other way around. Normally your resident state gives you a credit for the taxes you pay to the non-resident state).

Prepare the Arizona return first, and when you get to the California return, pay attention to the screen that talks about Credit for taxes paid to another state. This will apply to you because of the situation I described above. If not pre-populated, enter all of the income you earned in California in that box and the amount of tax you paid to Arizona on that income. This will usually be the amount of Arizona tax withheld, plus any additional amount you must pay Arizona or minus any state tax refund from Arizona.

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minxAuthor

Level 2

Thank you for your reply. All of my income was made and taxes paid to California. There was no tax paid to Arizona so I'm not sure I understand what you said about entering amount paid to Arizona.