Retirement tax questions
Yes, you must answer the question in the Alabama (AL) state return about the pension.
- As you go through the AL return, when you get to the retirement screen, you must select Edit beside the one from the AL Retirement System.
Once you do that, it will be nontaxable on the AL return. See the images below for your assistance.
Next, you will want to do an amended return for AL for both of the years you mention if the retirement payment was taxed in those years. They must be completed in the 2019 and 2018 TurboTax software as appropriate.
