In the main Dividend entry screen, click the box "My form has info in other boxes" to open up the entire 1099-Div screen and enter your state in the state in box 13 then continue. This seems to clear the error and allows the US Govt portion of the dividend to no be taxed at the state level.
The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020 taxes.
