Retirement tax questions

There is not a bug, you are required to enter that it is nontaxable. The program has a place in the state section for you to enter that it is exempt.

Please follow these steps:

1. Return to the state of AL and edit/ update/ review
2. Continue through until you see About Your Retirement Distributions
3. The screen shows all distributions.
4. Click EDIT next to the exempt pay
5. Special Handling of This Distribution screen
6. Is this income not taxed by AL? Select YES
7. Summary screen shows zero for AL taxable
8. Edit each income which is exempt.

The actual list of qualified plans is over 25 pages long, A consolidated version is Income Exempt from Alabama Income Taxation.