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According to this: http://www.mass.gov/dor/docs/dor/forms/inctax16/f1-nrpy/form-1-nrpy-instructions.pdf it is MA source income. As a Connecticut resident, Connecticut tax will be calculated on it as well (since it's based on all your income) but then you will get a credit for the MA tax on it so you are not double taxed.
According to this: http://www.mass.gov/dor/docs/dor/forms/inctax16/f1-nrpy/form-1-nrpy-instructions.pdf it is MA source income. As a Connecticut resident, Connecticut tax will be calculated on it as well (since it's based on all your income) but then you will get a credit for the MA tax on it so you are not double taxed.
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