what category do we select for box 14 if the description said AL EX OT and $....?

I believe you are referring to box 14 on your W-2 form. That is mostly for reporting miscellaneous information regarding things entered elsewhere on your W-2 form. As such, it usually doesn't affect your income tax.  You would have to ask your employer if you don't know what the abbreviations stand for, and then you can see if the entry fits any of the categories provided in the drop down menu you see in TurboTax.

There are no rules or standards for the information in box 14, or for any codes or abbreviations that are used. The employer can put pretty much whatever they want in that box. If there is something you don't understand, you have to ask the employer what it means.

I am certainly no expert, but I think it may be that over time wages are tax exempt in Alabama? In such case this box would not affect your federal, but may be circle back to when filing state.

That would be the amount of overtime pay.

The income for overtime pay is exempt on your Alabama return. 

Box 16 for state wages should already be adjusted and not include the income for those hours. 

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