jbilla
New Member

State Tax Refund

While entering information for my wife's sales income the amount of refund from taxes I paid in Alabama was reduced. The income for my wife had nothing to do with the taxes I paid in Alabama in 2020. Why is this affecting the tax refund?

ThomasM125
Expert Alumni

State tax filing

If you are entering income on a federal return, it will also be considered income on your state return, so I don't think I understand what you are asking. Can you clarify please?

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jbilla
New Member

State tax filing

Thank you for responding to my email. The question is in regard to taxes I paid on income I earned while working in Alabama while living in Florida. The income my wife made was in Florida and had nothing to do with Alabama, she never lived in Alabama.

LenaH
Employee Tax Expert

State tax filing

If Alabama state tax was withheld from your spouse's W-2, you will have to file a nonresident Alabama return, even if she never lived there.

 

In addition, if she did not work or commute to Alabama and she made her income from Florida, then the employer withheld state taxes in error. Make sure you enter 0 on the screen that asks for the income earned in Alabama. This will eliminate your tax liability for Alabama and you will get a full refund of taxes paid to Alabama. 

 

@jbilla

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