The IRA/SEP/Simple box is supposed to be checked. So the form is correct and you entered it correctly. Also, you are correct that Alabama does tax Traditional (but not Roth) IRA distributions. What Distribution Code is in Box 7 of your 1099-R?
On your Alabama Form 40, your taxable IRA distribution should appear on Page 2, Part 1, Line 4(b).
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
