No, you should not add up your total payment and withholding amounts. It is asking for your state refund amounts as that can become taxable income if you itemized and took a deduction for it and then received a refund for it.
So, if last year, one of you itemized and the other did not, you would only enter the refund amount of the person who itemized. If neither of your or both of your itemized, then you can add the amount together for the state refunds.
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