MarilynG1 - Thank you for your quick reply! Those links are very helpful. My remaining concern is that, according to the DC D-40 tax booklet, given his 365 days living/working in DC, they seem to want to classify my spouse as a non-domiciled Statutory Resident and they equate that to a full-year resident who must report "his/her entire income for the taxable year". CO also wants to classify him as full-year resident. I don't think I can appease both states. It would definitely be to our advantage to 'assign' his non-wage income to CO as their tax rates are lower.
