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View All Income Tax Questions, Individual Income Tax FAQs

Does Alabama allow an adjustment for Firefighter’s Insurance premiums?

Yes. Beginning with the tax year 2020, qualifying firefighters may exempt the following benefit payments from income to the extent the payments are included in their federal adjusted gross income:

Lump sum benefit payments to a firefighter as a result of a cancer diagnosis up to a lifetime benefit of $50,000.
Monthly benefit payments as a result of a specific injury or illness of $3,000 per month for 36 consecutive months to a career firefighter or certified volunteer firefighter or $1,500 per month to a non-certified volunteer firefighter otherwise not eligible for employment benefits.
In addition, firefighters may take a deduction for 100% of the insurance premiums they paid with after tax dollars to the extent the premiums have not been deducted from the federal adjusted gross income.

Yes. Beginning with the tax year 2020, qualifying firefighters may exempt the following benefit payments from income to the extent the payments are included in their federal adjusted gross income:

Lump sum benefit payments to a firefighter as a result of a cancer diagnosis up to a lifetime benefit of $50,000.
Monthly benefit payments as a result of a specific injury or illness of $3,000 per month for 36 consecutive months to a career firefighter or certified volunteer firefighter or $1,500 per month to a non-certified volunteer firefighter otherwise not eligible for employment benefits.
In addition, firefighters may take a deduction for 100% of the insurance premiums they paid with after tax dollars to the extent the premiums have not been deducted from the federal adjusted gross income.

Related FAQs in Income Tax Questions, 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.