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

[BMcCalpin · Accepted solution]

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]

[drw5979]

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.