Because employees pay half of the premiums, one-half of the income is taxable income. Because the 1099-G is the total you received, you can an adjustment under Miscellaneous Income.
When you get to the Colorado state section, you will have to make sure you make the right adjustment to exclude the one half amount as on the federal return (do not add another adjustment.)
Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C
On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
On the Any Other Taxable Income? screen, select Yes
On the Other Taxable Income screen enter the description "Adjustment for Colorado FAMLI," then one half as a negative. Select Continue
On the Other Miscellaneous Income Summary screen, select Done
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