1099 field box numbers may vary from one type to another.
I suggest leaving step-by-step and going to Forms to find the 1099 Turbo tax created for you.
Look for the labels that pertain to this error:
x. state tax withheld ($40 in your example)
y. state & state id (must be filled in)
z . state distribution (amount you received subject to tax in this state,)
turbo tax's checksum says you can't have paid more in tax than the income you received,
in their words:
"withholdings can not be greater than or equal to gross distribution or state distribution"
your error seems to be not filling in box Z,
which in your example, probably would be the total amount received from box 1
the error I encountered was filling in box Y with a state and leaving x and z blank
which resulted in turbo tax saying that 0 in X is greater than or equal to 0 in Z
