Actually, a number of states other than Colorado consider unemployment compensation to be "sourced" in their state if the unemployment was derived from a job located there, and therefore to be taxable to non-residents. Some examples are Illinois, Massachusetts, Iowa, South Carolina, Connecticut, and New York.
In those situations, the taxpayer would normally have to report the income to both states but would be able to claim a credit on their home state return for the tax paid to the non-resident state.
And unemployment compensation is always taxable by the recipient's home state at the time it is received, unless specifically excluded by state law. States that currently (2022) exclude unemployment from state income tax include Alabama, California, the District of Columbia, Montana, New Jersey, Pennsylvania, and Virginia.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
