@JimO2 - okay ; I think I figured it out by replicating what you stated in TaxSlayer, which is a competing product
1) on the CO return, make sure you are tagged as a non-resident and your spouse is tagged as a resident. Look at Form 104PN. if you then review the CO return, you should see the subtraction for the non-resident income and then the tax is calculated on your spouse's income only.
2) then on the MI return; this is a little tricky. You must file with the same status as on the federal form. I indicated in Taxslayer that you both were non-residents. (I can't see a way of marking one as resident and one as non-resident, esp since the filing status has to follow the federal return.). Your spouse's income should automatically be subtracted from Line 13 and then the tax is calculated on Line 17 and Line 18 is blank! Further look at Schedule NR where your state standard deduction is adjusted to reflect only your income is taxable in MI
does that work?
