Unfortunately, this is a common problem with the state being listed incorrectly on your W-2 form. The best way to resolve this problem is to get your employer to issue a corrected W-2 form.
If you pay taxes in more that one state, your resident state will usually allow you a credit for taxes paid to another state. You should look for that option in TurboTax on the state tax return that you are completing for your resident state.
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