Note: The best practice when entering multiple state tax information into TaxSlayer Pro is to first create the nonresident return(s) and finish with the resident return. This allows the income tax data from the nonresident state(s) to transfer to the resident return. In TaxSlayer Pro, when creating the resident return you are prompted to pull in other state tax info, and by selecting "Yes" this info is pulled in and the credit for taxes paid to another state is automatically calculated.
Arizona filers may claim a nonrefundable credit for individual income tax paid to another state or country. The income must be taxed by both jurisdictions. However, taxes paid to the following states are not eligible for this credit: Alaska, California, District of Columbia, Florida, Indiana, Nevada, New Hampshire, Oregon, South Dakota, Tennessee, Texas, Virginia, Washington, and Wyoming.
Before starting the Arizona return, prepare the nonresident return(s). Once all nonresident returns are finished, create the Arizona resident return. TaxSlayer Pro will prompt to import any other state tax information found. Selecting Yes at this prompt will automatically calculate the credit for taxes paid to the other state.
Otherwise, to view or adjust the credit for taxes paid to another state in in the Arizona resident tax return in TaxSlayer Pro, from the Arizona Tax Return Menu select:
- Tax Minus Nonrefundable Credits
- Credits From Arizona Form 301
- Taxes Paid to Another State or Country (Form 309)
Additional Information:
Desktop: Which States does Arizona have a Reciprocal Agreement with?
Arizona State Tax Return Information
AZ DOR: Credit for Taxes Paid to Another State Instructions
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.