@Critter-3 wrote "You ONLY file AZ."
Not correct. Colorado Code 39-22-109 states:
"Severance pay, paid-out sick and vacation leave pay, disability pay and unemployment insurance is Colorado-source income to the extent that the income is attributable to employment in Colorado regardless of whether the person is a resident when the benefit is paid."
https://casetext.com/regulation/colorado-administrative-code/department-200-department-of-revenue/di....
As @DawnC stated, you must file in both AZ and CO.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
