Hello @n1njah , under General > Miscellaneous there is an Accrued Taxes section.  Selecting the box for Accrue state tax option 2 should automatically generate the amount on Schedule M-1 line 5.  If not using the Accrue state tax options, an entry will need to be made in the Schedule M-1 screen for State taxes (automatic if using state tax accrual option 2).

Thanks!