Alabama Code AL40-050 is a rejection on your return because your total Alabama Wages must equal the total amount of all State Wages and distributions (including income earned out of state) as reported in Box 16 of the Federal 1040 W-2 or on your 1099-R form, Box 16.
Since this income was not sourced in Iowa (the address of the payer does not impact anything in this situation), you should input Alabama in Box 15. As an Alabama resident, all of your income is subject to tax in Alabama. This error is mandating that your Alabama wages must total all of your state wages on your W-2's and your 1099's (whether sourced in your resident state or not).
Therefore, please ensure that your 1099-R input states the following:
- BOX 14: $0 (if not tax was withheld)
- BOX 15: Choose Alabama and input the FEIN as shown in the box Payer's TIN (if there is no state identification number on your 1099-R).
- BOX 16: Enter the amount as shown in Box 1.
If this is what is entered, then you need to go back through your W-2's or any other 1099's, if applicable.
Fixing every W-2 or 1099-R that is on your return should fix your error. If not, then we will need a diagnostic copy to assist you further. Comment below if you have further trouble and instruction will be provided on how to send us a diagnostic copy.
@CamelliaCity83
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
