TurboTax often incorrectly imports the state on a 1098-T due to auto-parsing errors where the software misinterprets the document layout, even if the zip code is correct. This occurs because the program sometimes fails to match the scanned zip code with the correct state abbreviation, requiring manual correction or deleting the form and re-entering it manually.
Since you stated that you deleted the 1098-T form and manually re-entered it, I would suggest you delete the form once more, close the program, clear your Cache and Cookies and retry. Something appears to be 'sticking' from the original imported form.
@ashleyhawkins3
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