This is a known issue for the state of Michigan. The engineers are working on it as fast as possible so you can proceed.
This is what is happening: Every state is different. Michigan does conform to the federal rule about an early pension/IRA withdrawal. The 10% early withdrawal penalty is waived and the tax on the withdrawal is paid over three years. Other states do not conform at all, some states conform to part of the new legislation.
Form MI-1040 brings over the Federal Adjusted Gross Income as usual, which would include only one third of the total early pension/IRA withdrawal. The Pension worksheet will be updated as soon as possible to match this. Since the worksheet currently does not match the state form, TurboTax is warning you to wait for that the worksheet before e-filing the state.
For more information, see: How are my taxes affected by the coronavirus (COVID-19) pandemic?
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