TurboTax does not automatically populate the list of income items taxed on the federal return that are not taxed on the Alabama return, but you are able to populate this list in Part IV of the form 40 yourself.
In the Alabama interview, proceed to the screen titled "Federal Income Not Taxed by Alabama". At the bottom of this screen, there is a table in which you can enter the description of the income item and the amount. These entries are carried directly to Part IV on the Form 40.
In addition, if any entries are made here, then the YES box on line 5 is checked.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
