You are generally a resident of only one state.
When you complete the Personal Interview:
- Select Colorado as your state of residence on December 31, 2016;
- Answer "No" when asked if you "Lived in another state in 2016?" That question only applies if you changed your state of residence in 2016.
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Answer "Yes" when asked if you "Earned money in another state?", that state would be California.
The program will prompt you to prepare a resident Colorado tax return and a non-resident California return. Prepare the California return first.
You will pay CA tax on your CA income. CO will also want to tax that income, but will give you a credit (against CO tax), for the amount paid to CA on the same income.
