Do I need to pay state tax to a state I lived in for only 2.5 months if I received no income from sources in that state?

[kritter-k]

I lived in AZ until 10/22/24 when I moved to CO. All of the state taxes that were withheld from my incomes sources in 2024 went to AZ; no taxes went to CO. In TurboTax Premier 2024, I entered my new CO address and I specified that AZ was a previous state of residence. 

When I went through the AZ portion of the TurboTax interview, TurboTax automatically completed Form 140PY - Part-Year Resident. In that form, it calculated a "2024 Arizona Amount Only" as a portion of my "2024 Federal Amount" for my various income source. I'm not sure how it derived the AZ amounts. Those amounts appear to be roughly (but not exactly) a percentage of the federal amount based on living in AZ for 294 days out of 365 days (from January 1, 2024 through October 21, 2024) in 2024. 

CO considers you a full-time resident for tax purposes if you lived in the state more than 6 months in a given year. Therefore, I would be considered a part-time resident. Furthermore, the CO Dept. of Revenue website's " Part-Year Resident/Nonresident Calculation Schedule" page says "Tax is prorated so that it is calculated only on income received in Colorado or from sources within Colorado."  

My questions:

1) Do I need to file a CO tax return or pay any CO taxes? TurboTax is recommending I download CO forms in addition to AZ forms.  None of my income came from CO sources, but I did receive Social Security payments in my national bank account for Nov. and Dec. while living in CO then.

2) Should I do anything different regarding the state residency information I entered in the Personal Info section of TurboTax? I think the fact that I specified my new CO address and I specified that AZ was a previous state of residence is why TurboTax thinks I should download CO forms. 

[MaryK4 · Accepted solution]

You might need to file a Colorado tax return if your social security was taxable, since you received some while a Colorado resident.  

You must file a Colorado income tax return you were a part-year resident of Colorado with taxable income during that part of the year you were a resident
AND

you are required to file a federal income tax return, or you have a Colorado income tax liability for the year.

If you know that you do not have to file the Colorado tax return, you can choose not t download it.