I have two W2 forms one for Yonkers and one 1127. Does this mean I have to fill out the NYC1127 form considering I already have a W2?

Yes, if you have a W2 with NYC income and tax withheld, you will need to file in both cities.  

Both returns can be prepared in TurboTax along with your NY return.

Here is a link with more details on those returns: City Returns in TurboTax