For AL, there is a maximum of $50,000 allowed for the severance pay exemption. Any amount over that would be taxable. Box 16 should be blank if less than $50k and you are right, no taxes. Please check your w2 entry is blank for for all state information if there is no taxable income.
In addition, the state tax form does have a line for income taxable on federal but not state. Continue through AL until you come to Federal Income Not Taxed by Alabama. Enter Severance Pay and the amount.
Related: Alabama Severance Pay Exemption
Why do you want to enter no taxable income? What are you trying to do?
what type of non-taxable income. in most cases nothing is entered but there are exceptions like municipal interest, retirement plan rollovers, social security.
you are right there no state tax taken on my W2 because my income is none taxable but when filing my taxes with turbotax they are charging me tax
I'm not sure what I need to do all I know is the state of Alabama had an agreement with Goodyear that they will not tax income we recieved after the plant closure but turbotax is taxing my state income . there was no state tax taken on my W2
For AL, there is a maximum of $50,000 allowed for the severance pay exemption. Any amount over that would be taxable. Box 16 should be blank if less than $50k and you are right, no taxes. Please check your w2 entry is blank for for all state information if there is no taxable income.
In addition, the state tax form does have a line for income taxable on federal but not state. Continue through AL until you come to Federal Income Not Taxed by Alabama. Enter Severance Pay and the amount.
Related: Alabama Severance Pay Exemption
I tried that still didn't work I think the turbotax disc is not make the adjustment that is needed.
It is a good idea to first clear your cache and cookies - which means removing all of the temporary programs that can gum up your web browser. If that doesn't work, try using a different web browser.
Here is a link on how to clear your cache and cookies.
You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.
Here is a link to finding a TurboTax expert.
However, that requires upgrading your product which may be an expense you don't want. In that case you can call an expert and ask questions over the phone.
Here is a link to the TurboTax Phone Number.