Flag_of_Alabama.svg
An official website of the Alabama State government.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Frequently Asked Questions

Filter FAQs

Categories
Sub Categories
Service
Showing (127) FAQs
QuestionCategoryRead More
How can I check on my individual income tax refund?
How do I amend Form W-2?
I have hired a sitter or someone to help in my home, am I required to withhold Alabama income tax from their wages?
I overpaid my withholding tax, how should I handle this?
Is withholding required from 1099 Distributions?
We have a Section 125 Cafeteria Plan available to our employees, does the State of Alabama recognize this exclusion from gross income?
We have employees who will be receiving severance pay. Is this income taxable to the recipient?
How do I obtain a copy of my return? I don’t see it on My Alabama Taxes
If I have other questions about my Alabama Individual Income Tax Return, who should I contact?
What happens if I am no longer married to the person with whom I filed an Individual Income Tax return?
Can I file my Alabama Individual Income Tax Return electronically from my home using my personal computer?
Can my Alabama Individual Income Tax Return be filed electronically?
Does Alabama have a simplified or EZ form?
How can I get Alabama tax forms?
I do not see my tax return on My Alabama Taxes, how do I obtain a copy of my return?
If I am a resident of Alabama, but work in another state or country, am I required to file an Alabama tax return?
If I am not a resident of Alabama, but earned income from Alabama sources, am I required to file an Alabama tax return?
When should I file my Alabama Individual Income Tax Return?
Who must file an Alabama Individual Income Tax Return?
Can I pay my income taxes due with a credit card?
Can I pay my income taxes online?
Can I set up a payment plan?
Does Alabama offer a payment plan option?
How can I view previous estimate payments I have made?
Can I deduct childcare expenses on my Alabama Individual Income Tax Return?
Does Alabama allow an adjustment for Firefighter’s Insurance premiums?
I am in the military and a legal resident of Alabama, but I do not live in Alabama. Do I have to pay Alabama income tax?
I am in the military and not a legal resident of Alabama. If my spouse and/or I also have civilian jobs in Alabama, should we report that income to Alabama?
What are the limitations on my IRA deduction?
What expenses are deductible as Adoption Expenses?
What income is exempt from Alabama income taxation?
What income must I report on my Alabama return?
What interest income is exempt from Alabama taxation?
What is Alabama’s Individual Income Tax Rate?
Who qualifies as my dependent?
How can I avoid having my federal income tax refund intercepted for payment of my state tax debt?
I have a payment plan in effect with the Alabama Department of Revenue. Will my federal refund still be offset?
What is an offset?
What is the legal authority to take my federal tax refund and apply it to my state debt?
What is the Treasury Offset Program (TOP)?
Whom should I contact regarding the offset?
Will the Alabama Department of Revenue charge me any fees if my federal refund is offset to my state income tax debt?
What taxpayers must file an Alabama Business Privilege Tax return?
Does the Alabama Business Privilege Tax return require any attachments?
I understand that under Alabama Income Tax Law an amount up to $10,000 for taxpayers filing Married filing Joint can be deducted on your Alabama tax return if you contribute to a College Counts Alabama 529 Savings Plan, but does each taxpayer have to write a check for $5,000, or is one check for $10,000 from either spouse acceptable?
What is an Electing Family Limited Liability Entity?
Are qualified 529 Saving Plan withdrawals exempt from Alabama income tax?
What is a Determination Period?
Is a rollover from an out‐of‐state qualified 529 plan into another qualifying Alabama 529 plan by an individual that files a joint Alabama State income tax return eligible for an Alabama State income tax deduction of up to a $5,000 or $10,000?
How is the rate for the Business Privilege Tax determined?
When rolling over an out of state 529 plan to an Alabama qualifying plan, is the roll over into the Alabama qualifying plan (both the contributions and earnings portion) exempt from any current year Alabama income tax?
How is the federal taxable income for S corporations and limited liability entities determined?
Does Alabama income tax law recapture previously deducted contributions when withdrawing money from my Alabama 529 Savings Plan for non‐qualified reasons?
What do I need to do if I received this notice in error?
How do I obtain a Certificate of Compliance from Alabama Department of Revenue?
So the nonresident seller is still required to file an Alabama income tax return, even with the withholding?
Are only transactions which result in taxable income to the seller subject to withholding?
Can a corporation elect to file a consolidated Alabama corporate income tax return?
Can a corporation request a waiver of penalties incurred for corporate income taxes?
Does Alabama have a contribution deduction limit?
Does Alabama have a minimum corporate income tax?
Does Alabama provide for a federal income tax deduction?.
If the seller is a corporation, how does it claim the withholding credit since the corporation income tax return does not have a line for tax withheld?
Does our corporation have Nexus in Alabama?.
Does the corporation have to file corporate income tax if there is no business activity or never began, but is registered with the Alabama Secretary of State?
One of the conditions for a nonresident seller to be considered a deemed resident under Section 40-18-86, Code of Alabama 1975, is that the seller has filed Alabama income tax returns, or appropriate extensions, for the two income tax years immediately preceding the year of the sale. What if the sale occurs before the due date for the previous year’s income tax return?
Is there a filing extension available for corporate income tax returns?
Is a single-member limited liability company (SMLLC) whose status is disregarded for federal income tax purposes considered to be the seller for purposes of Section 40-18-86, Code of Alabama 1975?
Is there a time limitation to file my corporate income tax return with a request for a refund?
What are the filing requirements for a corporation operating in Alabama as a partner in a partnership?
What are the filing requirements for an exempt organization operating in Alabama?
What are the reporting requirements as the result of an IRS audit?.
Section 40-18-2, Code of Alabama 1975, imposes a tax on every nonresident individual receiving income from property owned or business transacted in Alabama. Also, Section 40-18-14 states that the taxable income of a nonresident individual includes only income from property owned or business transacted in Alabama. An installment note, held by someone who is not in the business of holding installment notes, derived from the sale of investment real property or rental real property by a nonresident individual, would be intangible property that was acquired as income from property held in this state or as a result of business done in this state. “Business income” is defined in Section 40-27-1, Code of Alabama 1975, as income arising from transactions and activities in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade of business operations. Accordingly, interest that is attributable to the installment note in this situation is taxable for Alabama purposes. Is the interest from the installment note subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975?
What is the corporate income tax rate?
What is the due date for filing a corporate income tax return?
When are corporations required to pay electronically?
Where can I find more information pertaining to consolidated corporate returns?
Who must file a Corporate Income Tax return (Form 20C)?
What are the recent law changes that affect filing a financial institution excise tax return?
If I am not a resident of Alabama, but earned income from Alabama sources, am I required to file an Alabama tax return?
What is Financial Institution Excise Tax?
Does our financial institution have Nexus in Alabama?
What types of interest income is taxable?
Where can I find more information pertaining to consolidated financial institution excise tax returns?
Who may file consolidated returns?
Who should you contact for assistance with the credit submission process and/or questions about business income tax credits?
Can a financial institution elect to file a consolidated Alabama Financial Institution Excise Tax Return?
Does Alabama have a minimum financial institution excise income tax?
What is the current tax rate?
What is the correspondence mailing address for the Financial Institution Excise Tax Section?
What is the mailing address for Form ET-1/ET-1C?
How should financial institutions treat NOLs?
Does Alabama provide for a federal income tax deduction?
How do I claim a business credit?
Are deductions for dividends allowed?
Is interest expense allowed as a deduction?
Is there a limitation on the amount of contributions deductible?
What are the reporting requirements as the result of an IRS audit?
Since Credit Unions do not have Federal Taxable Income, what should a credit union report on the Form ET-1 line 1 Federal Taxable Income?
Does our partnership have Nexus in Alabama?
How does a preparer know if he or she is required to electronically file a corporate/partnership return next year?
How does a preparer know if he or she is required to electronically file a corporate/partnership return this year?
When is a self-prepared corporate or partnership return included in the mandate?
When is the Corporate/Partnership Income Tax e-file mandate effective?
How does a partnership file for an extension?
Is a single member LLC required to file a separate Alabama income tax return?
What is a QIP (Qualified Investment Partnership)?
What is the mailing address for Form 65?
What is the mailing address for Form PTE-C?
Does Alabama accept consolidated S returns?
Most of my business equipment has been fully depreciated on my income tax return; do I still list these items on the personal property return?
Does Alabama accept the federal extension for S corporations?
Does Alabama allow the filing of composite returns for S corporation shareholders?
Does our corporation have Nexus in Alabama?
How does a preparer know if he or she is required to electronically file a corporate/partnership return next year?.
How does a preparer know if he or she is required to electronically file a corporate/partnership return this year?.
When is a self-prepared corporate or partnership return included in the mandate?.
When is the Corporate/Partnership Income Tax e-file mandate effective?.
Are estimate payments required?
Can the federal income tax paid on federal Form 1041 be claimed as a deduction on the Alabama Form 41?
How does a preparer know if he or she is required to electronically file a Fiduciary return?
Is the Fiduciary Income Tax Return, Form 41, under the e-file mandate?
When is a self-prepared Fiduciary return included in the mandate?
How does a disregarded entity (without an income or excise tax filing requirement) pass a business credit that requires pre-certification through MAT to its owner?
1099-NEC Filing
Are any employees exempt from withholding tax?
Do I need a withholding tax account number?