Deductions & credits

I am assuming that your return is showing a deduction for saving the money rather than a penalty for cashing it out. Follow these steps:

1. Open your return
2. Edit AL
3. continue through to You've Finished Your Alabama Return
4. Select Income to update/ revisit
5. continue through until you reach First Time Second Chance Homebuyer Accounts
6. Select Yes
7. Make any corrections necessary

@cecegrin