Anonymous
Not applicable

Alabama Teachers Retirement is not taxable by State of AL but turbo tax Is not excluding it how do I correct this

 

Retirement tax questions

 

Because Alabama does tax some retirement programs, you need to manually indicate that your retirement distributions are not taxable.

 

When you go through the Alabama interview, if you have entered a 1099-R of any sort, you will see a screen entitled "About Your Retirement Distributions".

 

Click the Edit button to the right of the distribution you want to alter.

This should give you a new screen called "Alabama Special Handling of This Distribution".

 

At the bottom of this screen, if your distribution qualifies to be non-taxable in Alabama, you can answer the question "Is your distribution from one of the pension plan systems that is not taxed by Alabama?" with a "yes".

 

Then you are returned to the screen with the table of distributions, only this time, you will see that the Alabama income is zero.

 

[Edited 3/23/2020 11:41 am CDT - removed screenshot references]

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Retirement tax questions

I can't get to the screen that ask for About your retirement distribution.  I have completed my Alabama return and gone through review then realized that my pension is being taxed.  I have not filed yet.