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]
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]