Remote Work AZ/SD

[EstebanF]

I didn't find a specific question regarding this, so I thought I would ask...

I live in South Dakota (no state tax), and work remotely for a company in Arizona. 

I was told by the payroll department that they needed to deduct state taxes, even though I don't live in Arizona. Regardless of whether I live in South Dakota that doesn't have individual state tax.

I did live in Arizona this year (2022), from January to July, and moved to South Dakota in July. I have worked remotely since then. Not sure if this info is relevant, but just in case it is; I wanted to share my residency status.

Thanks.

[R-SchuleCPA]

Sorry to say but - Nonresidents are subject to Arizona tax on any income earned from Arizona sources. 

[EstebanF]

Thank you very much for the quick response. That is what I thought. But, I just wanted to confirm.  Many thanks!