did you prepare Iowa first? Turbotax requires the nonresident state to be prepared first. both CO and IA will tax the income but on CO you'll get some credit for the taxes paid to IA.

we can't see your returns so don't know exactly what you are doing so you may need to contact support.

I did not see at the time that I was supposed to complete the out of state first, I wasn't even sure if I needed to file it until after I had complete the instate. In any case I need to correct it now. I have been trying to allocate the appropriate out of sate income but can't find where to do this unless I go into the state forms and add it there, which doesn't seem correct. Please direct me to the appropriate step by step forms where I can make this change. 

@DeanW60 - you should not have to 'allocate' anything; TT should be performing that function for you. 

on the Iowa return, did you desingate yourself as a non-resident? 

Yes, I designates myself as a non resident in Iowa. I had assumed that since I indicated that the rental income was from Iowa that it would automatically be associated with that state, but it does not look like that is the case.

After searching through the step by step process for the Iowa return with the help of TT phone support it was determined that the software was not handling this case correctly and the only way to force the income to be associated with the Iowa return was to do directly on the Iowa forms. This then required an amended return to file with both Iowa and Colorado to correct the error.