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View All Withholding Tax FAQs

I overpaid my withholding tax, how should I handle this?

Overpayments may be taken as a credit on Line 5 of your next withholding tax return. The return on which a credit is claimed must be accompanied by a brief explanation of where the overpayment occurred in order for the Department to verify the overpayment. If filing electronically, please complete the credit claimed information before submitting your return. If a refund is preferred, Form IT:RE-2WH Application for Refund of Income Tax Withholding can be obtained by submitting a written request to the Department. The written request may be sent in MAT under “I Want To” then “Ask A Question”. Original IT:RE-2WH forms are required and photocopies will not be accepted. Refunds generally take anywhere from 10 to 12 weeks.

Overpayments may be taken as a credit on Line 5 of your next withholding tax return. The return on which a credit is claimed must be accompanied by a brief explanation of where the overpayment occurred in order for ALDOR to verify the overpayment. If you are filing electronically, complete the credit claimed information before submitting your return. If a refund is preferred, submit a written request to ALDOR for Form IT:RE-2WH Application for Refund of Income Tax Withholding. Submit the written request in My Alabama Taxes. After logging in, go to “Other Actions” and under the “Feedback” box click on “Ask a Question.” Original IT:RE-2WH forms are required, and photocopies will not be accepted. Refunds generally take 10 to 12 weeks to process.

Related FAQs in Withholding Tax

Yes. You will receive confirmation through My Alabama Taxes, and a letter confirming the closure will be mailed to you for your records.

 

 

No. Closing the account does not remove filing requirements for periods when the account was active. All required withholding tax returns must be filed, including the final A-3 when applicable.

The A-3 may only be filed on or after January 1 of the following tax year.

Example: If your withholding tax account is closed during 2026 and you filed one or more withholding tax returns for 2026, you must file a final 2026 A-3. The 2026 A-3 may be filed on or after January 1, 2027.

Yes, if any withholding tax returns were filed during the tax year. This includes returns reporting zero withholding tax.

If any returns were filed during the tax year, a final Form A-3, Annual Reconciliation of Alabama Income Tax Withheld, must be filed for that tax year.

Once the account has been closed, you will receive a response through My Alabama Taxes confirming the closure.

A letter confirming the account closure will also be mailed to you for your records.

To close your withholding tax account, log in to My Alabama Taxes and complete the following steps:

  1. Select Other Actions.
  2. Under Feedback, select Ask a Question.
  3. Select Withholding Tax.
  4. Select the filing period that should be the final filing period for the account.
  5. Select any available message type.
  6. Enter Close Withholding Tax Account in the Subject line.
  7. Enter a brief message requesting that the withholding tax account be closed.
  8. Submit the request.