You are only required to report state wages that were earned in the state (where you actually worked). Regardless the state you live in, will tax all of your federal earnings. States may have their own rules that apply to certain employee benefits.
I would need more information about all pay and benefits you received from your employer and the applicable state. You should also check your last pay-stub in 2017 and make sure that your total year-to-date wages for this state, match the amount on your W-2.
If you still aren't sure why there's a difference for your state wages, it may be fastest and easiest to ask your employer. You should especially do so, if you think it may be a mistake, because they should correct your form. It's not common for state wages to be different than box 1, but it does happen in certain circumstances.
You should enter your personal retirement contributions, under: Deductions & Credits >>> Retirement and Investments >>> Traditional and Roth IRA Contributions
