gtohhhh
New Member

Do I enter the gross distribution amount or zero on my alabama return? I am a retired federal employee and do not know?

As a retired federal employee in Alabama, my retirement income is not taxed by the state. On the state return, what do I enter as income? I put in the amount on my 1099R, and TurboTax says I owe a substantial amount. Do I enter my income as zero or what?

JulieH1
New Member

Retirement tax questions

Are you filing a joint return or separately?
gtohhhh
New Member

Retirement tax questions

Separate, I am divorced. Thank you for the quick reply!
JulieH1
New Member

Retirement tax questions

If the retired federal employee income is all you have to report in AL, then you do not need to do a return at all.  If you have other income and must do a return then you do not enter the retired income.  I have attached a link to the Alabama Department of Revenue guidance on this.  See page 7.  

https://revenue.alabama.gov/wp-content/uploads/2017/08/08f40bk.pdf

If your other income is above the amount below for your filing status you need to file:

Full year residents whose filing status is “Single” must file if gross income for the year is at least $4,000. Full year residents whose filing status is “Married Filing Separate Return” must file if gross income for the year is at least $5,250.  Full year residents whose filing status is Head of Family” must file if gross income for the year is at least $7,700.  Those whose filing status is “Married Filing Joint Return” and whose gross income for the year is at least $10,500 must file an Alabama income tax return.

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