Do I need to file an Alabama tax return? ; Texas resident and made money from sale of Alabama property in Family partnership; Partnership Fed. & AL K1 has been filed and I have a copy,so do I really need to file with the state of Alabama?

[Patrice · Accepted solution]

Do you have to file Alabama taxes? It depends on how much income (gain) you had from the sale of the property in AL, relative to your other income.

From the AL DOR website:  Nonresidents must file a return if Alabama income exceeds the allowable prorated personal exemption. 

If you didn't report a gain on the sale on your federal return, you don't need to file an AL return.  

If you did report a gain on your federal return, you have to calculate whether the prorated AL exemption will eliminate the gain for AL tax purposes.