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  • 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?

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?

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.
The employee is NOT a military service member.
The military service member spouse has a current military order assigning him or her to a military location in Alabama.
The employee and military servicemember reside at the same address.
The employee’s domicile state is a state other than Alabama.
The employee’s and military service member’s domicile is the same.
The employee is present in Alabama solely to be with the military service member spouse.
In addition, the qualifying spouse should complete a Form A4-MS (https://revenue.alabama.gov/wp-content/uploads/2019/09/FA4MS9_19-1.pdf) with their employer claiming withholding tax exempt status.

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.
The employee is NOT a military service member.
The military service member spouse has a current military order assigning him or her to a military location in Alabama.
The employee and military servicemember reside at the same address.
The employee’s domicile state is a state other than Alabama.
The employee’s and military service member’s domicile is the same.
The employee is present in Alabama solely to be with the military service member spouse.
In addition, the qualifying spouse should complete a Form A4-MS (https://revenue.alabama.gov/wp-content/uploads/2019/09/FA4MS9_19-1.pdf) with their employer claiming withholding tax exempt status.

Related FAQs in Income Tax Questions, Individual Income Tax

All income is subject to Alabama income tax unless specifically exempted by state law. For examples of taxable income go to: Listing of taxable income

Interest on obligations of the State of Alabama or any county, city, or municipality of Alabama, and interest on obligations of the United States, or any of its possessions.

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