You need to compare the items on your Colorado K-1 to the Federal K-1 and report any differences. You don't say if your K-1 is from a partnership (federal Form 1065) or an S-Corp (federal Form 1120S), but you will compare box 1 from your federal form and line 1 from your Colorado form and will only report an amount in either the Increases section or Decreases section depending on if the federal K-1 is higher or lower.
For example, if your Box 1 on your Federal K-1 is $10,000 and line 1 of your Colorado K-1 is $7,000, you will enter $3,000 in the Decreses section of your Colorado individual return with a description of "Ordinary Business Income".
Then do the comparison for lines 5, 7, 10, 11, and 13.
You will enter the amount from line 15 of your Colorado Schedule K-1 on the Take a look at Colorado credits and taxes screen, under the Business and investment credits section for Electing Pass-Trough Entity Owner Credit when you go through your state tax return.
@sconmifi
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