If indeed this is an exclusion, then I assume from what you are saying that your employer has indeed removed this amount from Wages in box 1 on your W-2. If so, then we want to just enter this amount as "Other (not classified)", so that TurboTax doesn't do anything else with it (your employer has already done it when they excluded it from your Wages).
If this is all true, don't worry about your state - nearly all states start with federal numbers that include the exclusion (which seem counterintuitive, I agree).
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