"When I try to enter the income allocation in turbotax's state refund" - did you mean "state return"?
"when it reviews the entire refund" - did you mean "entire return"? If so, was this in the federal or final review or in the state review?
"North Carolina auto-corrects my earned income back to what is on the federal W2 section" - this does not sound right, something else must be going on.
"Can I get around this or do I need to get a corrected W-2?" Do NOT get a corrected W-2 - I assume that the W-2 accurately reflects to whom what amounts of state withholding were sent.
Does TurboTax really change the amount of income for North Carolina after you entered the apportioned amounts? That would be very odd behavior.
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