Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

[gs_robinson]

The software has an issue with leaving off Social Sec Income on State Return. Software support needs to investigate and fix this issue.

[xmasbaby0]

Alabama does not tax Social Security benefits.

There are 9 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont  These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

[gs_robinson]

I appreciate your response.

Even though Alabama does not tax Social Security income, it does require it to be reported on Form 40 on Part IV line 5. Line 5 states: Do you have income which is reported on your Federal Income tax, but not reported on your Alabama return (other than state tax refund)? Yes or No. The software incorrectly selected No. On my past Alabama state returns, TurboTax selected Yes and added my Social Security income. So, there is an issue with Form 40 for the 2024 tax year for the Alabama return. The software support team needs to correct this issue. Otherwise, I will have to manually correct this information when I print my Alabama State Return. Then, I will have to mail my return instead of using Efile. I reported this issue on a chat with Turbo Tax Support. I posted this issue in the community forum to make other people aware of it.  

[VolvoGirl]

Maybe it's because your SS is not taxable income on your federal return?  Check your 1040 line 6b and see if anything is taxed this year.  

[gs_robinson]

I appreciate your response.

My Social Security income is taxable on my federal tax return. Line 6b on my Form 1040 does show taxable Social Security income. The issue is a software issue with TurboTax on Form 40 for the Alabama state return. 

Please note that Form 40 Line 5 states: Do you have income which is reported on your Federal return, but not reported on your Alabama return?  Yes or No.  TurboTax entered No. That response is incorrect because I have Social Security income on my Federal Return that TurboTax has not entered on my Alabama return. Software personnel need to investigate and fix this issue. The Social Security income has been entered on my 2023, 2022, etc. Alabama tax returns on line 5. The Alabama requirement for reporting that income has not changed.  Form 40, line 5, has not changed for 2024. It is a software issue. If it is not fixed, I must correct the issue manually when I print out my Alabama Return and mail in my return instead of using Efile. 

[KeshaH]

We can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Once you've got your tax return open,

- click Online in the top menu bar

- Choose Send Tax File to Agent

- Log in to your Intuit Account (if you're not already)

- you'll see a message explaining that you will be providing a diagnostic copy of your return - your personal details will be changed so we will not be able to see any private information

- click send and you'll get another message with a token

Reply to this message with your token and we'll take a look to see what we can find. Please let us know if there are any states included with your return other than Alabama.