TIP: If the W-2 has no entry for Box 16 - State Wages and there IS an amount in Box 18 - Local Wages, TurboTax will incorrectly treat the local wage amount as "Additional Taxable Wages - Other States" on Alabama Schedule 2, Column J.
The workaround I found that prevents this is to add the following entries to the W2 in Federal:
Box 15 - State: AL
Box 15 Employer State ID - Get it from the prior year's W2
Box 16: .01 (one penny)
This works because the presence of a value other than zero stops TurboTax from incorrectly reporting the local wages as "Additional Taxable Wages - Other States". I used a penny because that rounds down to zero dollars and TurboTax retains the .01 entry. Otherwise, if zero is entered, we observed that TurboTax Online will clear that zero it out while TurboTax Desktop will retain the zero that was entered.
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