What should I do for the "Enrolled members of Native American tribes can deduct any wages earned while living and working on their tribes' reservations"? What do i enter?

To clarify your question, for what state are you filing a return as an Enrolled member of a Native American Tribe?

I have same question.. I worked and lived on the reservation in Arizona but my employers headquarters were in New Mexico. How would I know what I can deduct and for which state?

This income is for the state of Arizona. You would be able to deduct all of the income that you earned while living and working on the reservation in Arizona as a Native American.

Native Americans living and working on a reservation are allowed to exempt their (reservation) W-2 wages from Arizona state taxation, under Arizona state law. TurboTax supports this exemption, and here are the instructions to enter.
 

• Finish your federal tax return, as your reservation wages are still taxable by the federal government
• Begin your Arizona state tax return
• When you reach the screen with a list of items that has the title "Do These Apply to You?"   check the one that is labeled "I Have Adjustments to Federal Income."
• Continue until you reach  "Any Income Adjustments"
•  Scroll down and select  "I Am a Native America Who Earned Wages While Living and Working on a Reservation"
• Click Continue and on the very next screen you should have the option to enter the dollar amount of your wages that are eligible for the Arizona exclusion

@austinb111