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posted Feb 22, 2024 6:02:27 AM

Alabama Form RS 2023

On Alabama Form RS 2023, why is the Taxable to Alabama in Column I of Part II and Part III exactly double the gross distribution in column .  The gross distribution is the amount of a traditional IRA converted to a Roth IRA.  Why is the Taxable to Alabama twice the Roth Conversion amount?

0 3 1016
3 Replies
Expert Alumni
Feb 25, 2024 9:38:42 AM

It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

 

  1. From the left menu select Tax Tools. 
  2. Then select Tools below Tax Tools. 
  3. A window will pop up which says Tools Center.  
  4. On this screen, select Share my file with Agent. 
  5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
  6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

 

The instructions for TurboTax Download: 

 

  1. On your menu bar at the very top, click "Online"
  2. Select "Send Tax File to Agent"  
  3. Click "Send"
  4. The pop-up will have a token number
  5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

Level 1
Feb 25, 2024 12:25:31 PM

Token 1194569

 

The federal return does not increase my tax due to the ROTH conversion is covered by the basis in my trad IRA.

 

However, this year, the state tax increases due to the roth conversion. Note: Alabama does have a new form this year - RS form. Does the state not look at the 8606 forms to know that i have a basis?

 

Thanks

Doug

Expert Alumni
Feb 25, 2024 2:13:37 PM

Thank you, I reviewed you return, you will have to review your entry on the “Some or All of Your Distribution is Taxable” screen during the Alabama State interview:

 

  1. On your Alabama return click “Update” next to Income.
  2. Continue until the “About your retirement” screen and click "Edit”.
  3. Continue to the “Some or All of Your Distribution is Taxable” screen and edit the amount next to Taxable Roth IRA conversion.
  4. Repeat for the second entry.

 

@dougreed67