You have to enter state withholding on the W2 box 17 and pick the right state in box 15. Or from a 1099 box 12. You enter most things on the federal side to flow to the state.
what is the withholding from? Go back to the W2 input screen,
Federal Taxes on the left side
Wages & Income
Then Wages and Salaries- Click the Start or Update button
