Alabama State Tax Return

Alabama Individual Income Tax Provisions

States adopt different types of filing systems for their individual state income tax. There are three different types: joint, combined, or a combination of the two. Alabama uses a joint filing system, in which both spouses' incomes are added together and taxed as one amount, similar to the federal tax concept of taxing families as a single economic group.

Alabama uses the federal adjusted gross income as the base for figuring out the state tax, though variances occur when determining what income is subjected to tax and what which deductions are available.

Exemptions From State Taxation

Certain income is exempt from being taxed by Alabama, which is different than the federal guidelines. These include:

• Interest accrued on U.S Government bonds
• Private pensions payments from defined benefit plans
• Civil service and military pension payments
• Unemployment compensation
• Social Security Benefits
• Benefits from Alabama prepaid tuition and college savings plans (as well as up to $5,000 in payments to said benefit programs)

Other Differences From Federal Law

Interest earned on State or Municipal Bonds is taxable, with the exception of Alabama obligations. Capital gains and losses follow a similar structure to the federal law, though losses are deductible and gains taxable in the year in which they were incurred.

Exclusions exist for Up to $25,000 in severance pay as a result of administrative downsizing, as well as any income from the Department of Defense for a relative killed in action in a combat area, along with that military member's spouse's income during the year of death.

Deductions

The standard deduction for Alabama is based on a sliding scale, set at income over $30,000 per filer as follows:

• Single: $2,000 min/ $2,500 max
• Head of Household: $2,000 min/ $4,700 max
• Married, Joint: $4,000 min/ $7,500 max
• Married, Single: $2,000 min/ $3,750 max

State income tax and local sales tax is non-deductible, however FICA, federal self-employment tax and railroad retirement is deductible. Additionally, Medical expenses must exceed 4% of the resident's AGI with the exception of long-term care premiums, which are 100% deductible. Employees who relocate to Alabama for a job can deduct 100% of moving expenses as well.

2023 Alabama Tax Rates

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household

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Alabama	Services Available
Preparation	Preparation of a state tax return for Alabama is available for $29.95.
E-File	E-File is available for Alabama.
Direct Deposit	Direct Deposit is available for Alabama.
Non-Resident Preparation	Non-resident AL state return's are available upon request.
Non-Resident E-File	E-Filing non-resident AL state returns is not available.
Filing Deadline	4/18/2023

AL Counties	AL Cities
Autauga	Autaugaville, Billingsley, Booth, Jones, Marbury, Prattville
Baldwin	Bay Minette, Bon Secour, Daphne, Elberta, Fairhope, Foley, Gulf Shores, Lillian, Little River, Loxley, Magnolia Springs, Montrose, Orange Beach, Perdido, Point Clear, Robertsdale, Seminole, Silverhill, Spanish Fort, Stapleton, Stockton, Summerdale
Barbour	Clayton, Clio, Eufaula, Louisville
Bibb	Brent, Brierfield, Centreville, Green Pond, Lawley, Randolph, West Blocton, Woodstock
Blount	Allgood, Blountsville, Cleveland, Hayden, Locust Fork, Oneonta, Remlap, Trafford
Bullock	Fitzpatrick, Perote, Union Springs
Butler	Chapman, Forest Home, Georgiana, Greenville, McKenzie, Midway
Calhoun	Alexandria, Anniston, Bynum, Choccolocco, De Armanville, Eastaboga, Jacksonville, Ohatchee, Oxford, Piedmont, Weaver, Wellington
Chambers	Five Points, Lafayette, Lanett, Valley
Cherokee	Cedar Bluff, Centre, Gaylesville, Leesburg, Spring Garden
Chilton	Clanton, Jemison, Maplesville, Stanton, Thorsby, Verbena
Choctaw	Butler, Cromwell, Gilbertown, Jachin, Lisman, Melvin, Needham, Pennington, Silas, Toxey, Ward
Clarke	Alma, Campbell, Carlton, Coffeeville, Dickinson, Fulton, Gainestown, Grove Hill, Jackson, Morvin, Salitpa, Thomasville, Walker Springs, Whatley
Clay	Ashland, Cragford, Delta, Hollins, Lineville, Millerville
Cleburne	Edwardsville, Fruithurst, Heflin, Muscadine, Ranburne
Coffee	Elba, Enterprise, Jack, Kinston, New Brockton
Colbert	Cherokee, Leighton, Muscle Shoals, Sheffield, Tuscumbia
Conecuh	Brooklyn, Castleberry, Evergreen, Lenox, Range, Repton
Coosa	Equality, Goodwater, Kellyton, Rockford, Weogufka
Covington	Andalusia, Florala, Gantt, Lockhart, Opp, Red Level, River Falls, Wing
Crenshaw	Brantley, Dozier, Glenwood, Highland Home, Honoraville, Luverne, Petrey, Rutledge
Cullman	Baileyton, Bremen, Crane Hill, Cullman, Garden City, Hanceville, Holly Pond, Joppa, Logan, Vinemont
Dale	Ariton, Clopton, Daleville, Fort Rucker, Midland City, Newton, Ozark, Pinckard, Skipperville
Dallas	Marion Junction, Minter, Orrville, Plantersville, Safford, Sardis, Selma
De Kalb	Collinsville, Crossville, Dawson, Fort Payne, Fyffe, Geraldine, Groveoak, Henagar, Ider, Mentone, Rainsville, Sylvania, Valley Head
Elmore	Coosada, Deatsville, Eclectic, Elmore, Kent, Millbrook, Tallassee, Titus, Wetumpka
Escambia	Atmore, Brewton, Flomaton, Huxford
Etowah	Altoona, Attalla, Boaz, Gadsden, Gallant, Rainbow City, Walnut Grove
Fayette	Bankston, Belk, Berry, Fayette, Glen Allen
Franklin	Hodges, Phil Campbell, Red Bay, Russellville, Spruce Pine, Vina
Geneva	Bellwood, Black, Chancellor, Coffee Springs, Geneva, Hartford, Malvern, Samson, Slocomb
Greene	Boligee, Clinton, Eutaw, Forkland, Knoxville, West Greene
Hale	Akron, Greensboro, Moundville, Newbern, Sawyerville
Henry	Abbeville, Headland, Newville, Shorterville
Houston	Ashford, Columbia, Cottonwood, Cowarts, Dothan, Gordon, Pansey, Webb
Jackson	Bridgeport, Bryant, Dutton, Estillfork, Fackler, Flat Rock, Higdon, Hollytree, Hollywood, Langston, Paint Rock, Pisgah, Princeton, Scottsboro, Section, Stevenson, Trenton, Woodville
Jefferson	Adamsville, Adger, Alton, Bessemer, Birmingham, Brookside, Cardiff, Clay, Docena, Dolomite, Dora, Fairfield, Fultondale, Gardendale, Graysville, Kimberly, Leeds, McCalla, Morris, Mount Olive, Mulga, New Castle, Palmerdale, Pinson, Pleasant Grove, Sayre, Shannon, Trussville, Warrior, Watson
Lamar	Beaverton, Detroit, Kennedy, Millport, Sulligent, Vernon
Lauderdale	Anderson, Cloverdale, Florence, Killen, Lexington, Rogersville, Waterloo
Lawrence	Courtland, Hillsboro, Moulton, Mount Hope, Town Creek
Lee	Auburn, Auburn University, Cusseta, Loachapoka, Opelika, Phenix City, Salem, Smiths, Valley, Waverly
Limestone	Ardmore, Athens, Belle Mina, Capshaw, Elkmont, Lester, Madison, Mooresville, Tanner
Lowndes	Fort Deposit, Hayneville, Letohatchee, Lowndesboro, Tyler
Macon	Fort Davis, Hardaway, Notasulga, Shorter, Tuskegee, Tuskegee Institute
Madison	Brownsboro, Gurley, Harvest, Hazel Green, Huntsville, Madison, Meridianville, New Hope, New Market, Normal, Owens Cross Roads, Ryland, Toney
Marengo	Demopolis, Dixons Mills, Faunsdale, Gallion, Jefferson, Linden, Magnolia, Myrtlewood, Nanafalia, Sweet Water, Thomaston
Marion	Bear Creek, Brilliant, Guin, Hackleburg, Hamilton, Winfield
Marshall	Albertville, Arab, Boaz, Douglas, Grant, Guntersville, Horton, Union Grove
Mobile	Axis, Bayou la Batre, Bucks, Chunchula, Citronelle, Coden, Creola, Dauphin Island, Eight Mile, Grand Bay, Irvington, Mobile, Mount Vernon, Saint Elmo, Saraland, Satsuma, Semmes, Theodore, Wilmer
Monroe	Beatrice, Burnt Corn, Excel, Franklin, Frisco City, Goodway, Megargel, Mexia, Monroeville, Perdue Hill, Peterman, Uriah, Vredenburgh
Montgomery	Cecil, Grady, Hope Hull, Lapine, Mathews, Montgomery, Mount Meigs, Pike Road, Pine Level, Ramer
Morgan	Danville, Decatur, Eva, Falkville, Hartselle, Laceys Spring, Somerville, Trinity, Valhermoso Springs
Perry	Marion, Sprott, Uniontown
Pickens	Aliceville, Carrollton, Ethelsville, Gordo, McShan, Reform
Pike	Banks, Brundidge, Goshen, Troy
Randolph	Graham, Newell, Roanoke, Wadley, Wedowee, Woodland
Russell	Cottonton, Fort Mitchell, Hatchechubbee, Holy Trinity, Hurtsboro, Phenix City, Pittsview, Seale
Saint Clair	Ashville, Cook Springs, Cropwell, Margaret, Moody, Odenville, Pell City, Ragland, Riverside, Springville, Steele, Wattsville
Shelby	Alabaster, Birmingham, Calera, Chelsea, Columbiana, Harpersville, Helena, Maylene, Montevallo, Pelham, Saginaw, Shelby, Siluria, Sterrett, Vandiver, Vincent, Westover, Wilsonville, Wilton
Sumter	Bellamy, Cuba, Emelle, Epes, Gainesville, Livingston, Panola, York
Talladega	Alpine, Bon Air, Childersburg, Lincoln, Munford, Sycamore, Sylacauga, Talladega
Tallapoosa	Alexander City, Camp Hill, Dadeville, Daviston, East Tallassee, Jacksons Gap
Tuscaloosa	Abernant, Brookwood, Buhl, Coaling, Coker, Cottondale, Duncanville, Echola, Elrod, Fosters, Kellerman, Northport, Peterson, Ralph, Samantha, Tuscaloosa, Vance
Walker	Burnwell, Carbon Hill, Cordova, Eldridge, Empire, Goodsprings, Jasper, Kansas, Nauvoo, Oakman, Parrish, Quinton, Sipsey, Sumiton, Townley
Washington	Calvert, Chatom, Deer Park, Frankville, Fruitdale, Leroy, Malcolm, McIntosh, Millry, Saint Stephens, Sunflower, Tibbie, Vinegar Bend, Wagarville
Wilcox	Alberta, Annemanie, Arlington, Boykin, Camden, Catherine, Coy, Furman, Lower Peach Tree, McWilliams, Oak Hill, Pine Apple, Pine Hill, Snow Hill
Winston	Addison, Arley, Delmar, Double Springs, Haleyville, Houston, Lynn, Natural Bridge