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Not applicable
posted Jun 5, 2019 11:47:38 PM

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

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1 Best answer
Level 13
Jun 5, 2019 11:47:40 PM

 

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]

2 Replies
Level 13
Jun 5, 2019 11:47:40 PM

 

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]

Level 1
Oct 12, 2020 12:04:52 PM

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.