I am assuming you live in Alabama? DId your W-2 have 2 states on it, one showing MS wages and the other showing AL wages with both amounts the same? If so, this would be the issue.
No, you can't separate state from federal. The import is automatic. But, you can go through and edit the income. As you walk through the screens, there should be an income screen that shows you your wages. On this screen click edit, then enter the correct income.
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