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
Yes. Alabama residents will be allowed to deduct contributions made on or after January 1, 2018, by or on behalf of such individual to a health savings account of such individual to coincide with annual amount allotted by federal law or regulation.
The Alabama standard deduction is based on the filing status used by the taxpayer. For tax years ending 12/31/2007 and forward, the Standard Deduction Chart is used to determine the Standard Deduction allowable on your return.
Military personnel who list Alabama as their home of record are required to pay Alabama income tax regardless of where they are assigned, or the length of time spent in Alabama. Alabama income tax law does not exempt active duty military.
Yes. Report your income on a Form 40NR. You can get a copy of this form on this website. Exception: Under the Military Spouses Residency Relief Act (MSRRA), the spouse of an armed forces member is exempt from Alabama income tax when: The employee’s spouse is a military service member.
No, you can use the Married Filing Separately filing status.
Yes, with a few exceptions. In Alabama, a foster child does not qualify a taxpayer to claim “Head of Family.” Also, you must be unmarried in order to qualify for “Head of Family” filing status with the state.
You may use either method. Compute your deduction using both methods and compare the results. Base your deduction on the method resulting in the greatest advantage to you.
Contributions: Contributions to an individual retirement arrangement (IRA) may be taken as an adjustment to income, the same as for federal tax purposes. These deductible contributions represent a deferral of tax on a portion of your income. Distributions: At the time funds are distributed from these IRA accounts, the amount
