JosephS1
Expert Alumni

Deductions & credits

Yes, Alabama is one of the states that allows for a deduction for Federal Income Tax.  So as we have discussed, lowering your Federal Income Tax will lower the deduction from income for Alabama taxable income.  I have enclosed a link to the AL Form 40A instructions.  On Page 11 of the Instructions it shows that on Page 2, Part III of the return what you can list as your Federal Tax Deduction if you would like to read the instructions.

 

Form 40A Instructions

 

@harbintb

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