Please check to see that there is no typo in the state tax ID number and that the state wages are the same as your federal amount in Box 1 of your W-2 if Alabama was the only state you worked in. If this does not resolve the issue please see the following FAQ for additional assistance:
I have two W-2s , one is for travel reimbursement that had no state taxes taken out. The AL total is correct, but the directions are unclear as to which box it is mismatching against.
It says 'Total Alabama Wages, Form 40 pg.1, line 5, must equal the total amount of all State Wages as reported in Box 16 of the Federal 1040 w2'
Somehow it is not accounting for the second W-2. HOW DO I FIX THIS???? It seems like a glitch in the software, which I have already paid for. Do I just input the state and amount onto the w-2, I don't have the State employer id, unless it's the same as salary. Do I need to fill out a 4852??
I'm certain it's a TurboTax glitch.
For three years in a row now, I've been unable to successfully transmit my AL state tax return using TurboTax because I get error AL40-050. I have a W-2 from a second state in addition to my AL W-2, and I'm certain this is the problem. TurboTax just doesn't seem to know how to handle it in accordance with AL tax code.
Please see KaturahLO's suggestion here.
If that doesn't work, please see the TurboTax Help articles "How do I fix a rejected return?" and "When a tax return can't be e-filed no matter what you do" for guidance.
If, in the end, you've verified that your information is correct as you entered it, and you e-file again, and Alabama's e-File system still rejects your state return, your only option will be to paper-file your return and send it in.
Please see the TurboTax Help articles "How do I print and mail my return in TurboTax Online?" or “How do I print and mail a return in the TurboTax for Windows CD/Download software?” as appropriate for guidance on paper-filing.
@JohnHornbuckle