My husband and I both won money at a casino in AZ, we received W-2G's, we live in CO, do we file a non resident AZ tax return or just add those W-2G's to our CO one????

[DoninGA]

Enter the W-2G in the federal section of the TurboTax program.  The income reported from the gambling winnings will flow to your state tax return.  If Arizona state income taxes were withheld from the winnings then you would file an AZ non-resident return.  You would receive credit on the Colorado return for the taxes paid to Arizona.

To enter, edit or delete Gambling Winnings and Losses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• On Gambling Winnings, click the start or update button

Or enter gambling winnings on w-2g in the Search box in the upper right of the program screen.  Click on Jump to gambling winnings on w-2g

[sdwilkins_97]

They did not hold out any taxes so that's where I was confused, I read somewhere that we did not need to file AZ because it was under the $3000 for joint but to just add it to our CO return??

[DoninGA]

The requirement to file an Arizona non-resident tax return if Married Filing Jointly is if you had Arizona sourced income greater than $11,000.  Since no AZ taxes were withheld from the winnings and the amount is less than $11,000 there is no requirement to file an Arizona return.
The TurboTax program will handle the winnings to be reported on the Colorado return after you enter the W-2G into the program in the federal section.

[sdwilkins_97]

Thank you so very much!!

[Opus 17]

If you didn't know the rules, you would start an AZ return for your non-resident income, and Turbotax would eventually tell you that you don't need to file it.  In your case since your winnings were under the limit, you can ignore Arizona.

You always enter all your world-wide income on your home state tax return, whether or not you are filing other state non-resident returns.

[sdwilkins_97]

Thank you!!

[Opus 17]

Both.  You need an AZ non-resident return to pay AZ tax on AZ-source income.  Then you need a CO resident return to pay income tax on all your world-wide income.  You get an offsetting credit on your CO return for taxes paid to AZ that mostly offsets the problem of double taxation.  Turbotax will do all this for you, just be sure to do the AZ non-resident return first so that the credit will flow properly to the CO return.