Where do you live?
Does your W-2 from the Department of Education have any Section 1127 wages or 1127 tax in box 14?
I don't understand why you think TurboTax is forcing you to file Form NYC-1127. On the New York credits and taxes screen you don't have to click the Start button for NYC-1127. Just click "Done with Credits" and proceed through the rest of the New York return. If you do click Start for NYC-1127, the first screen asks "Do you need to complete Form NYC-1127?" If you answer No it accepts that answer and you can just proceed.
If you still feel that you are being forced to file Form NYC-1127, please post specific detailed information about the steps you are taking in TurboTax, how you are answering each question, and the exact word-for-word message you are getting from TurboTax that prevents you from skipping the NYC-1127. If possible, post screen shots, but omit or remove any personal information. This is a public web site.
