Alabama State Income TaxesThe state of Alabama collects income taxes on April 15th, much the way the IRS and 44 other states do.
This page:
• Lists basic Alabama state tax information
• Links to the major Alabama income tax forms
• Shows you how you can save time and money by e-filing
Alabama state taxes at a glance:
Tax Rate Range: Low - 2.0%; High - 5.0%
Income Brackets: *Lowest - $500; Highest - $3,000
Number of Brackets: 3
Personal Exemptions: Single - $1,500; Married - $3,000; Dependents - $300
Standard Deduction: Single - $2,000; Married filing joint return - $4,000
Medical/Dental Deduction: Limited to excess of 4% of adjusted gross income
Federal Income Tax Deduction: Full
*Note: Rates are doubled for joint filers with AGI of at least $3,750.
Filing your Alabama state tax returnWhen you begin your Alabama state income tax return, you may choose to file under any status regardless of how you filed on your deferral tax return. However, you must be eligible to file under the different status before doing so.
Similarly, you can choose to itemize your deductions on your state return even if you took the standard deduction on your federal return. Use the method that benefits you the most.
Besides the standard or itemized deductions, Alabama does not allow other deductions besides the federal tax liability deductions. However, there are some tax credits available to Alabama taxpayers. The most common include:
• taxes paid to another state credit
• basics skills deduction credit
• capital credit
As a resident of Alabama, retirement income from an out-of-state source is taxable to Alabama. This income, however, should not be taxed twice.
As a nonresident of Alabama earning income for a source located in Alabama, you are responsible for filing an Alabama state tax return if your compensation is over your allowable personal exemption amount.
Sidebar
You can work on your Alabama tax return online while filing your federal return (you can work on it for free, and pay nothing until you are ready to file).
Note: if you are filing more than one state return, you must file a paper return for each additional state, as TurboTax for The Web only allows one state prep.
Alabama income tax forms
The main Alabama tax forms are:
Form 40 | 2006 Alabama Individual Income Tax Return | Instructions
Form 40A | Short Form | Instructions
Schedule A, B & CR | Itemized Deductions, Interest and Dividend Income, and Credit for Taxes Paid to Other States (for the Form 40)
Schedule D & E | Profit from Sale of Real Estate, Stocks, Bonds, etc. and Income from Pensions, Annuities, Rents, Royalties, Partnerships, S Corporations, Estates & Trusts (for the Form 40)
If you need Alabama income tax forms that are not listed here, you can download them from the Alabama tax forms site.
Or, just simply e-file!
Additional AL state taxes help
If you need help with your federal tax return, start with our basic guide to tax filing.
For additional help with filing AL income tax returns, see the official site of the Alabama Department of Revenue.
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