Hi qbteachmt, thanks for taking the time to reply during these busy times. Most of my state returns are NJ/PA, so my experience in this area is limited. 

The CO wages are due to her performing services in CO. I do understand the 1040 and NM allocation/preparation, just haven't been able to find specific guidance on how to prepare their CO return(s).

I know CO filing status will have to be MFS; I would assume that a marital property state would not follow 8958 allocations and thus she would report her actual own amounts on her CO return - but it won't be consistent with her federal AGI...