It depends. If your situation is as you describe it, then yes, this could be correct. In the scenario you present, Colorado gives you a credit for the tax you pay to Massachusetts for the income you earn in Massachusetts while living in Colorado. If this amount is equal to or greater than the amount of tax Colorado assesses on that income, then you would in fact have no Colorado tax.
However, this is not your situation. Once you moved from Massachusetts, the income you receive telecommuting actually belongs to Colorado and only Colorado. For Massachusetts, Massachusetts-sourced income is income earned while physically present in Massachusetts only. There are states (NY for example), that would tax your telecommuting income. But Massachusetts does not. This website provides more information on this: http://www.thetaxadviser.com/issues/2010/feb/apractitionersguidetothetaxationoftelecommuting.html
Therefore, you actually file part-year returns (only) for Massachusetts and Colorado. You will allocate, apportion, or designate, the amount earned telecommuting in Colorado as Non Massachusetts Portion Income. If unsure of the amount, then use percentages. Determine the percentage of the year you were living in Colorado, and multiply your entire income from that job by this percentage. This amount will be taxed in Colorado.
Obviously, you may see a Colorado tax due as the tax credit no longer would apply. However, your Massachusetts refund should increase by at least that amount, and likely more. More importantly, it is the correct way to file this year.
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