For AL, there is a maximum of $50,000 allowed for the severance pay exemption. Any amount over that would be taxable. Box 16 should be blank if less than $50k and you are right, no taxes. Please check your w2 entry is blank for for all state information if there is no taxable income.
In addition, the state tax form does have a line for income taxable on federal but not state. Continue through AL until you come to Federal Income Not Taxed by Alabama. Enter Severance Pay and the amount.
Related: Alabama Severance Pay Exemption
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