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Turbo tax incorrectly calculates Alabama state tax when non-taxable federal income shows NO state taxable income, TT STILL adds it to state form 40 W-@ worksheet as "OS".
The W-2 is blank in the boxes 15 thru 20 as this is non-taxable income in AL. HOWEVER, TT add this to AL Form 40 pg 1, line 5 totals which fails to reconcile with the W-2s, triggering an error upon e-filing. TT "assumes" this as another state, which it is not.
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‎February 7, 2023
12:05 PM