Daughter is a resident of Colorado but a student with earned income in Texas

[RPHammer]

My daughter is a resident of Colorado and a full-time college student in Texas.  She  earned income in Texas as an intern in 2024.  I understand that Texas has no state taxes but while preparing her CO state taxes, due to unearned income, in TurboTax I did not find the ability to deduct/delete her income earned in Texas.   

Is this correct?  I understand the CO state tax is based on your federal tax return, but does Colorado tax income earned in other States or is there the ability to deduct that income from CO income tax?

[MindyB]

You cannot deduct the income earned in Texas. You must report all of your wages to your state of residence.  You will then be taxed on them.  If you paid taxes to another state, you can take a credit for those out-of-state taxes to reduce your Colorado liability.  Since Texas doesn't have an income tax, any money you made working there wouldn't generate a credit to offset your Colorado tax liability.

You can read more about living and working in different states here: Multiple States—Figuring What's Owed When You Live and Work in More Than One State

[RPHammer]

Thank you for the reply!