I have a client that is a California resident and won the lottery in Arizona. Does anyone know how the winnings would be taxed by the two states? The little bit of research I did found that the winnings are taxed by both states independent of each other.
As a CA resident, the taxpayer would be subject to tax on all income. I’m assuming that AZ would also tax the AZ lottery winnings. If so, taxpayer would be able to claim an other state tax credit on the CA resident tax return.