When you enter the AL, go through the income section. It will ask you about each type of income on your return. You can enter the AL portion. If done, you can go through and see a screen You've Finished Your Alabama Return. You can update the Income section.
Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions.
You will need to prepare the states in a special order. You may need to delete resident state and begin again.
- First, prepare your non-resident returns. This creates your tax liability for the non-resident states. How do I file a nonresident state return?
- THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
If prepared out of order, verify your resident return is showing credit for each of the other states.
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