I am trying to do my daughter's taxes. She moved from HI at the end of 2006 but had vacation pay coming, so got a W-2 for 2007. She moved to ID but found a job in OR. She telecommutes so she can work wherever. She lived half the year in ID then moved to AZ. Her HR department just realized that they were sending state taxes to OR even though she never lived there. I think she has to pay taxes to HI, ID and AZ but should get back all taxes sent to OR if she files as a non-resident. Is this right? Does she have to file HI as part year resident or non resident since she moved by the end of 2006 but has income? Am I on the right track here?

That is correct. She files OR and HI as non-residents because she was NOT in either state for 2007.

For ID and AZ, she files as a part-year resident.