DawnC
Expert Alumni

Retirement tax questions

The answer was for a taxpayer with only one distribution that was a full rollover.   Your situation seems different.  Alabama exempts most retirement income, so you need to tell TurboTax how much taxable retirement income you had on your federal return, so it can be subtracted off of your Alabama return.   You can preview your Form 1040 and look on line 4b or 5b to find the taxable amount.

 

If you had no taxable income from the distributions on the federal return, as the OP here did, you would enter zero to the question.  But if you do have an amount in 4b or 5b, you should enter those amounts so they are not taxed on your Alabama return.  https://www.revenue.alabama.gov/individual-corporate/income-exempt-from-alabama-income-taxation/

 

Preview Form 1040 in TurboTax Online.

 

Use Forms Mode if you are using the desktop software.  @Alabama user 

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