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View All Filing, Individual Income Tax FAQs

Does Alabama have a simplified or EZ form?

The Simplified Short Form or 40EZ is available online to taxpayers who meet all of the following requirements:
• Is an Alabama resident.
• Has filed an Alabama Income Tax Return in a prior year or has a valid Alabama Driver’s License.
• Has a filing status of either Single or Married Filing Jointly.
• Has not made any estimated tax payments for the tax year.
• Has a total combined wage income of less than $100,000.
• Has no reportable income other than wages (no interest, dividends, retirement, pension, rents, gains, losses, etc.).
• Will claim no dependents.
• Will claim no itemized deductions.
• Will claim no federal income tax deduction.
• Will claim no income tax credits or adjustments to income.

Go to https://myalabamataxes.alabama.gov/ under “Quick Links” for Individuals, select the “File a Simplified Short Form 40EZ”. Note: The link may not be available before the IRS opens for e-file opens or after the due date of the return.

Since the only deductions allowed filing the simplified short form are the optional increased standard deduction and personal exemption, a taxpayer may benefit from filing a Form 40 rather than a Form 40EZ. The Form 40EZ is beneficial to those who have only wages and meet the requirements shown above. If you need to amend your Form 40EZ for any reason you will need to submit a paper Form 40 or Form 40A.

Additionally, by filing a Form 40EZ you agree to the following statement before submitting your return.

“Pursuant to Act 2017-405, Ala. Acts 2017, by claiming the optional, increased standard deduction, I acknowledge that I am knowingly and voluntarily foregoing any right to claim the federal income tax deduction otherwise allowed by section 40-18-15, Ala. Code 1975. I also acknowledge that I am knowingly and voluntarily foregoing the right to claim any and all other deductions, credits, and exemptions that would otherwise be available to me.”

The Simplified Short Form or 40EZ is available online to taxpayers who meet all of the following requirements:
• Is an Alabama resident.
• Has filed an Alabama Income Tax Return in a prior year or has a valid Alabama Driver’s License.
• Has a filing status of either Single or Married Filing Jointly.
• Has not made any estimated tax payments for the tax year.
• Has a total combined wage income of less than $100,000.
• Has no reportable income other than wages (no interest, dividends, retirement, pension, rents, gains, losses, etc.).
• Will claim no dependents.
• Will claim no itemized deductions.
• Will claim no federal income tax deduction.
• Will claim no income tax credits or adjustments to income.

Go to https://myalabamataxes.alabama.gov/ under “Quick Links” for Individuals, select the “File a Simplified Short Form 40EZ”. Note: The link may not be available before the IRS opens for e-file opens or after the due date of the return.

Since the only deductions allowed filing the simplified short form are the optional increased standard deduction and personal exemption, a taxpayer may benefit from filing a Form 40 rather than a Form 40EZ. The Form 40EZ is beneficial to those who have only wages and meet the requirements shown above. If you need to amend your Form 40EZ for any reason you will need to submit a paper Form 40 or Form 40A.

Additionally, by filing a Form 40EZ you agree to the following statement before submitting your return.

“Pursuant to Act 2017-405, Ala. Acts 2017, by claiming the optional, increased standard deduction, I acknowledge that I am knowingly and voluntarily foregoing any right to claim the federal income tax deduction otherwise allowed by section 40-18-15, Ala. Code 1975. I also acknowledge that I am knowingly and voluntarily foregoing the right to claim any and all other deductions, credits, and exemptions that would otherwise be available to me.”

Related FAQs in Filing, Individual Income Tax

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.