Was there an issue with the 2016 Tax year returns? My wife's income was input in a field box for medical expenses, causing us to get a state return, owing over $2800.

I haven't heard of any such, but we can't know all states in a community Forum 

(Annnnnnnnd you did not indicate what state was involved).

If you really want to check, you'd need to call TTX Customer support and ask.  Weekdays only 5am-5pm PACIFIC time:  You can get a phone number during those hours thru the FAQ below.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

and could you explain why you put your wife's income into a box for medical expenses.