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Frequently Asked Questions

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How can I check on my individual income tax refund?
How do I amend Form W-2?
I am a sole proprietor and have opened another business, do I need another withholding tax account number?
I have an active withholding tax account, but currently don’t have any employees. Do I need to file monthly or quarterly returns?
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?
I would like to begin filing and paying my withholding taxes electronically, where do I begin?
My business entity type (corporation, LLC, proprietorship, partnership, etc.) changed, but my federal employee identification number remained the same. Do I need a new state withholding tax account number?
My check for withholding tax has not cleared my bank, what should I do?
My employer is not withholding tax or will not provide me with a W2 form. What should I do?
My federal identification number has changed, do I need a new state withholding tax account number?
We have a Section 125 Cafeteria Plan available to our employees, does the State of Alabama recognize this exclusion from gross income?
What are the filing requirements when filing on behalf of an employer or withholding agent.
Why are there 2 penalties on this notice from the Department of Revenue?
How do I obtain a copy of my W2?
Can this fee be paid with my withholding tax return?
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?
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?
If tax is withheld from a nonresident seller who is a partnership, S corporation, or limited liability company, how does the seller claim credit for the withholding?
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?
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?
Are any employees exempt from withholding tax?
Do I need a withholding tax account number?