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FAQ Categories / Tax: Individual Income Tax

Individual taxpayers needing assistance with the credit claim process or who have questions about available tax credits should call the Individual Income Tax Audit and Appeals Division at 334-353-9770.

Individuals that have a My Alabama Taxes account should complete the following steps:

  • Log in to using your user ID and password.
  • Scroll to the Individual Income Tax portion of the page and select “Submit a Credit Claim” located in the Tax Incentives box.
  • Enter the information requested for the credit claim: Credit Type, Filing Period, Credit Amount, and upload attachments (include documentation received to verify the authorization of the credit). Select “Next.”
  • Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

 

Individuals that do not have a My Alabama Taxes account and are unable to create one should complete the following steps:

  • Go to the My Alabama Taxes homepage (www.myalabamataxes.alabama.gov).
  • Scroll to the “Individuals” box and click “Submit an Individual Credit Claim.”
  • Enter the requested taxpayer information: full legal name, Social Security number, email address, and contact number. Select “Next.”
  • Enter the requested information for the credit claim: Credit Type, Filing Period, Credit Amount Requested, and upload attachments (include documentation received to verify the authorization of the credit). Select “Previous” to return to Step 3 to edit the information or “Next” to review the credit claim.
  • Review the information entered in Step 4. Select “Previous” to edit the information or select “Submit” to send the credit claim through for review.

If the credit is from a Schedule K-1 issued by a pass through entity, the credit claim will be submitted by the pass-through entity, and no action is required by the individual. The credit claim must be submitted by the entity and approved by the Alabama Department of Revenue before the credit will be allowed on an individual’s income tax return. The pre-certification process must be completed by each entity that was allocated a credit until the credit is allocated to the individual claiming the credit. Additional information about credit pre-certification for pass-through entities can be found at https://revenue.alabama.gov/tax-incentives/.

These credits will be subject to an approval process when the tax return is filed claiming the credit. The following are credits that do not require pre-certification by an individual income taxpayer through My Alabama Taxes:

 

  • Alabama Adoption Tax Credit
  • Credit for Transferring from Failing Public School to Nonfailing Public or Nonpublic School
  • Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion*
  • Investment Credit (Alabama Jobs Act)**
  • Port Credit
  • Credit for Taxes Paid to Other States
  • Dual Enrollment Credit
  • Growing Alabama Credit***
  • Innovating Alabama Credit***
  • Rural Physician Credit
  • Alabama Enterprise Zone Act Credit
  • Credit for Taxes Paid to a Foreign Country
  • Income Tax Capital Credit

 

*Alabama Accountability Act Credit – Scholarship Granting Organization (SGO) portion - The process for reserving a donation to an SGO remains unchanged. Only pass-through entity filers are required to complete the new pre-certification process in My Alabama Taxes for donations made to an SGO when the Alabama Accountability Act Credit is passed through to its members.

 

**Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce. Once the Department of Commerce has approved the annual certification, ALDOR will notify the investing company to complete an allocation schedule through My Alabama Taxes. See https://revenue.alabama.gov/tax-incentives/.

 

***Growing Alabama Credit and Innovating Alabama Credit – The process for reserving a donation to an EDO remains unchanged.

All credits that require pre-certification must be submitted through My Alabama Taxes. Individual filers can remit the necessary information through their individual income tax account in My Alabama Taxes, or by selecting the “Submit a Credit Claim” option from the “Other links” menu in My Alabama Taxes. The credits that require pre-certification by individual income tax filers are:

 

  • Coal Credit
  • Full Employment Act of 2011
  • Veterans Employment Act – Employer Credit
  • Veterans Employment Act – Business Start-up Expenses Credit
  • Qualified Irrigation/Reservoir System Credit
  • 2013 Alabama Historic Rehabilitation Tax Credit
  • Apprenticeship Tax Credit
  • 2017 Alabama Historic Rehabilitation Tax Credit
  • Railroad Modernization Act of 2019
  • Storm Shelter Credit
  • Volunteer Emergency Responders Tax Credit
  • Neighborhood Infrastructure Incentive Plan Credit*
  • Alabama Film Rebate

 

*The Neighborhood Infrastructure Incentive Plan Credit – This credit expired in 2015. However, there may be some individual income tax filers that still qualify to claim this credit since there is a 10-year period over which the credit can be claimed.

 

Ex-spouses remain individually liable on a final assessment entered on a joint tax return, even if the parties have mutually agreed that only one of the parties will be responsible for payment. Such decisions are not binding on the Alabama Department of Revenue.

Follow the instructions at the bottom of the most recent billing letter you receive from the Collection Services Division. If you have any questions, contact a Revenue Compliance Officer by calling 334-353-8096. Checks or money orders should be made payable to the Alabama Department of Revenue. Always write your assessment number and account number on the check. When using a social security number, mask the number using the following format: XXX-XX-1234.

Mail your payment to the following address:
Alabama Department of Revenue
Collection Services Division
P. O. Box 327820
Montgomery, AL 36132-7820

To make payments and view your account online, visit My Alabama Taxes.

Need to visit in-person? Click here to locate your nearest Taxpayer Service Center location and make an appointment.

Any company signed up to use My Alabama Taxes with a Master Web Login should submit garnishment answers and/or payment online directly through the My Alabama Taxes website.

Identity theft occurs when someone obtains your personal information - such as your social security number, credit card or bank account numbers, passwords, etc. to defraud or commit crimes. You might be a victim of identity theft if:

  • Someone else has filed a tax return in your name;
  • You have an overdue balance or collection action from a year you did not file a tax return;
  • You find confirmed IRS records of wages from an employer you never worked for.

 

IDENTITY THEFT PREVENTION TIPS:

Taxes. Security. Together.

The Security Summit launched an awareness campaign www.irs.gov/individuals/taxes-security-together to better inform you about the need to protect your personal, tax and financial data online and at home. People continue to fall prey to clever cybercriminals who trick them into giving up Social Security numbers, account numbers or password information. In turn, criminals use this information a variety of ways, including filing fraudulent tax returns.

Protect Yourself from Identity Theft

Identity thieves have many ways to obtain your personal information. However, there are a number of precautions you can take to minimize your risk. This video provides five tips you can use to protect yourself against identity theft and fraud.

Other Resources

  • Identity Theft.gov (Federal Trade Commission)
  • Recovering from Identity Theft (Federal Trade Commission)
  • IRS Identity Protection Tips (IRS)
  • Protecting Your Investment (Social Security Administration)
  • Identity Protection: Prevention, Detection and Victim Assistance (IRS)
  • FTC: Tax-Related Identity Theft (Federal Trade Commission)

If you were affected by the IRS Get Transcripts breach, please know that we have taken internal steps within our system, noting that you were affected by the IRS Get Transcripts data breach. You will automatically be notified when ALDOR receives a tax return that has been filed using your Social Security number, alerting you to the possibility that criminals have your information and are using it to steal money from you and the state. You will be sent a verification code and will be asked to verify whether or not you filed a return by going to My Alabama Taxes and clicking on the "Verify My Return" link.

  • Respond immediately to any notice received from ALDOR; follow the notice instructions or call the number provided.
  • If you have not received a notice, contact our Compliance Unit at 334-353-9770.
  • Complete Form INV ID1 - Identity Theft Affidavit and mail to the address on the form.
  • Continue to pay your taxes and file your tax return, even if you must do so by paper. Include with the paper return: the Identity Theft Affidavit; a copy of your picture ID (driver's license or non-driver's ID); and one additional form of identification, such as a utility bill or bank statement.

Once your return is accepted by ALDOR, you may be asked to complete a five-minute ID Confirmation Quiz. The ID Confirmation Quiz is part of an effort designed to protect your identity and your tax refund. Once you have completed the quiz and your identity has been confirmed, ALDOR will continue processing your tax return. Those taxpayers asked to take the quiz will receive notification by mail sent to the address on the return. The notification will include specific instructions for completing the quiz.

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Generally, a criminal will use your SSN to file a false return early in the year. You may be unaware you are a victim until you receive a notice from ALDOR or try to file your taxes and learn one already has been filed using your SSN.

If you have registered at My Alabama Taxes and have access to your Individual Income Tax account, you can opt-in to a service that will notify you when ALDOR receives Individual Income Tax returns that have been filed using your Social Security number. This service can help alert you to the possibility that criminals have your information and are using it to steal money from you and the state. You can opt-in by logging into your My Alabama Taxes account and following the link "Notify Me of Filed Returns."

My Alabama Taxes is the convenient and secure way to access a variety of ALDOR's online services. In My Alabama Taxes you can quickly and easily file tax returns, make payments, view letters, manage your accounts, and conduct other common transactions with ALDOR.

For single persons, heads of families, and married persons filing separate returns:

2% First $500 of taxable income

4% Next $2,500 of taxable income

5% All taxable income over $3,000

For married persons filing a joint return:

2% First $1,000 of taxable income

4% Next $5,000 of taxable income

5% All taxable income over $6,000

Certain taxpayers are eligible to contribute funds to a special savings account to save funds for a down payment and closing costs on the purchase of a first home in Alabama. Contributions up to $5,000 for a single taxpayer or $10,000 for married couples filing a joint return to this account may be deductible and earnings are tax free if all the requirements are met. The deduction is available for the 5 years in which deposits were made into a first time and second chance home buyer savings account.

Information about the Alabama First-Time and Second Chance Home Buyer Savings Account

Taxpayers using the Single and Married Filing Separately filing statuses are entitled to a $1,500 personal exemption. Taxpayers using the Married Filing Jointly and Head of Family filing statuses are entitled to a $3,000 personal exemption.

Part year residents are entitled to the full exemption amount. A dependent or student may claim a personal exemption even if claimed by someone else.

For information on who qualifies as your dependent for Alabama Income Tax purposes, go to: Information about dependents

Prior to submitting debts to the U.S. Department of the Bureau of the Fiscal Service-Debt Management for inclusion in TOP, the Alabama Department of Revenue is required to notify each debtor that it intends to refer the debt for federal offset. If you received the LOI (Letter of Intent) notice, you have 60 days to do one of the following:

Pay your debt in full. A payment coupon is attached to the bottom of each notice for your convenience, or you can go to https://myalabamataxes.alabama.gov/, click on the “Pay a bill I received” link, to make a payment.
Provide proof of payment. If you believe that all or part of this debt has already been paid, fax your documentation to 334-353-2282.

It may take several weeks for the funds offset from your Federal tax refund to be applied to your State of Alabama debt.

The U.S. Department of the Bureau of the Fiscal Service-Debt Management will notify you in writing that an offset has occurred. TOP will provide information regarding the amount and date of the offset, the state to which the offset was paid, and a phone number to call where individuals may address your concerns and questions regarding the debt associated with the offset. The telephone number (334-353-0775) on the letter is to the Alabama Department of Revenue’s Examiner line.

Yes. The Alabama Department of Revenue will continue to offset federal income tax refunds and state refunds even though you are meeting your payment arrangements. Alabama statute allows for the offset of an Income Tax refund until the account is paid in full even if you are on an approved Payment Plan. Your regular monthly payment must still be made to avoid defaulting on your Payment Plan which could lead to enforcement action.

The Alabama Department of Revenue cannot stop an offset once you are notified by the U.S. Department of the Treasury’s Bureau of the Fiscal Service –Debt Management. We will refund any overpayment to you once it has been posted to your account.

Complete IRS Form 8379, Injured Spouse Allocation, and send it to the Internal Revenue Service (IRS) to get your share of the refund. You can download the form at http://www.irs.gov/pub/irs-pdf/f8379.pdf . You can also call the IRS at 800-829-3676, or visit a local IRS office.