W-2 Shows AE (Armed Forces in Europe) in Box 15, Not in Drop down.

You don't need to include the AE line on the W-2 input screen since there would be no taxes withheld. You can leave that blank.

Thank you for the reply. One more thing I need to ask. So I'm active duty military, my state of residency is Minnesota. I pay my states to Minnesota, my wife's state was Virginia, but under the military spouse residency relief act she can use Minnesota now. She works as a government contractor in Europe with me and is tax exempt. Her employer put AE as the state on her W-2. I'm wondering if it should even be AE, and can I leave the whole state line blank in TurboTax even though it shows amounts in box 16, but shows 0.0 state income tax in box 17. Thank you.