For NYC 1127.2 withholding in box 14 of your W-2 select the category "Other (not classified)." TurboTax will not automatically enter it on your NYC-1127 form. You will have to enter the amount of withholding again when you prepare your NYC-1127 in the New York interview.
NYC 1127.2 withholding is a payment towards the amount you have to pay on your NYC-1127 return, like the withholding for federal and state income tax. The Section 1127 payment is a payment you have to make as a non-resident employee of the City of New York. You can read more about it at this link on the NYC Department of Finance web site.
