Is he in a combat zone? why are his military wages not taxable?

Is he a resident of a different state for military purposes?

No.  That is not the issue. His w2 is fine showing no state taxable wages. The problem is this flows to the state return and the wants it there to match. I don’t know how to tell the state notvtaxable

He has a letter exempting him. This is not the issue. We filed last year single and the same W2. The issue is how do I get this on the state non taxable. I was on the phone with intuit on Saturday what we did was no good. The only option is to mail it in. Not good. 

Let me explain. The W 2 is coming from the base. So the tax software is missing something. 

When you are entering the w2 information while doing the state information show state as alabama and zero for wages. That should take care of the problem,

Are you saying when I enter the W 2 in the federal return there is nothing to fill out for the state as there is nothing for wages. You want me to enter state of Alabama?

Yes that is what I am saying. You might have to file by mail rather than E filing because I know that with intuit  the federal wages and state wages have to equal or it says there is an error on the return which provents you from being able to E. File,

Ok