MFJ resident st TX but one spouse worked in AZ

[AZ-Tax]

MFJ with residence in TX throughout tax year but one spouse worked in AZ all tax year and lived in extended stay motels. AZ income tax was withheld from W-2. Actually this is a 2010 tax return prepared by one of the chains and preparer filed an AZ resident tax form. I am trying think of way if possible to amend 2010 to refund all AZ income tax that was withheld. Appreciate any suggestions.

[David1980]

Well, extended stay hotels - and I'm assuming the assignment was temporary and they intended to return to Texas (or they would have found more permanent housing) - sounds like they were a nonresident of Arizona.

Certainly it can be amended. Can it be amended and ALL Arizona tax withheld refunded? I doubt it. When you work in a non-resident state they generally tax you on any income from that state. So they probably do have a tax liability for Arizona, but probably not as much as would be on a Resident return (specifically if the spouse that remained in Texas had much income at all.)

[Gary2]

AZ uses a nine-month rebuttable presumption of residency rule. Based on the information so far, they may be able to successfully argue non-residency.

[joanmcq]

Actually if they were there all year, looks like resident. And don't forget, both TX & AZ are community property states.

Have fun!!!!

[Gary2]

Actually if they were there all year, looks like resident.

I don't see anything in the information that's been provided and the AZ rules that would lead to this conclusion. It's possible that there's missing information that would compel this, or else I'm misreading the AZ residency test procedure.