I live in Colorado and have oil royalties from Kansas. Will I be able to file two states returns with your software?

Yes. Since you are using TurboTax desktop version, you will get one state included. You will want to choose your home state (CO) as your free state.

If you are required to file in KS as a nonresident, you can go under the state taxes tab and select KS from the dropdown list. You will be prompted on how to purchase and install this additional state on your computer.

According to the KS Department of Revenue, as a nonresident, you must file a Kansas income tax return if you have any income from Kansas sources.

You will want to work on your nonresident KS state income tax return first. You will then take a tax credit from your nonresident KS state income taxes on your resident CO state income tax return. (Please note that you will only get a tax credit for your KS state income taxes up to the amount of CO state income taxes that would have been paid if the income was earned in CO).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797