Hi,

I arrived on 7/18/2011 to AZ , USA on employment Visa. This is my first visit to USA with no history of prior arrivals. Also I have not left USA since my arrival (no gaps in physical presence)

Owing to my arrival date , I am a non resident alien for federal taxation as I don't satisfy SPT.

As per AZ State Tax Law , I am a part-year resident with residency starting from 7/18/2011.

As NRA , I am not taxed on Worldwide Income (including non US Foreign Bank Interest) for federal taxation. However , in case of AZ State Tax Law I am not sure about the treatment of Worldwide Income for Part-Year residents.

Should I report any Foreign Earned Bank Interest during my AZ residency as Interest Income although at a Federal Level I don't have to ?

As a NRA, you are required to pay Arizona taxes ONLY on income earned IN Arizona.