It depends. Alabama income tax must not be withheld when exempt severance payments are made. Also, the amount of the exempt severance payments should not be included in Alabama taxable wages (box 16) of the employee W-2 form, but should be disclosed in box 14 (Other) of the W-2 as exempt severance payments.
If your W-2 has severance payments in the wrong box, you will need to contact your employer to obtain a correction. There is no way to tell TurboTax to overlook what is in the boxes of your W-2. The employer would have been required to apply for approval to exempt the severance payments.
Here is a link to the Alabama Department of Revenue with more information.
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