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AZ double taxation of CA income

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    AZ double taxation of CA income

    I have a client who has a wife and 2 kids living in a house they own in Arizona. He works full time in Los Angeles where he rents an apartment and commutes to Arizona most weekends. The wife doesn't work. She is on Social Security disability. He doesn't qualify for Temporary Living expenses unfortunately. Arizona doesn't allow a Credit for taxes paid to California. Is there anyway to avoid this double taxation of his state income by Arizona?? I'm filing him jointly with his wife as a California Non Resident and an Arizona resident.

    #2
    California will give a credit for taxes paid on the same income as AZ. Not sure of the forms but have done it several times. You will usually end up paying CA something because their taxes are higher than AZ

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      #3
      How about Schedule S?

      That ought to do it.
      Evan Appelman, EA

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        #4
        AZ is "one of those states"

        AZ, IN, OR, and VA are states for which the CA credit for double-taxed income is handled in the way described. Also Guam. With other states, the credit would have gone onto the return in the state of residence.

        EA in CA

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