A taxpayer has retired and moved to a state with no income tax (WA) from a state with income tax (AZ) in December of 2022.  They closed on the AZ house on January 6, 2023.  They received a distribution from incentive compensation in 2023 and it is on a W-2.  The state wages and withholding are listed on the W-2 as AZ income. They have lived in WA for the entire year (2023).  Should the compensation be taxed in AZ thus meaning they will have to file an AZ tax return?  If they continue to receive distributions from their former employer, should it always be taxed in AZ meaning they will continue to file AZ tax returns? 

I couldn't find the regulations for this and would appreciate it if you know where I can find them. 

Thanks in advance for your help.