Why does Turbo Tax SHOW i OWE TAX ON MY Alabama return when my income is Military Retirement pay and NOT TAXABLE in Alabama.

[IsabellaG · Accepted solution]

You have to make sure that you mark your retirement as military retirement in your Alabama return.

When you go through your AL tax return, you will reach the screen About Your Retirement Distributions. Choose to edit your retirement distributions. Then say Yes to the question: Is your distribution from one of the pension plan systems that is not taxed by Alabama? See the screenshots below.

[navyharley]

When I finished my federal return turbo tax would not let me into the state income program, looks as though the program copied my federal and was in the review stage of the state return. WTF 

[SusanY1]

The federal data does copy initially to your state program, but you should be able to edit or review before the state return is filed.  Follow these steps to reset your state program and edit any areas that need adjustment prior to filing:

1. Click on State - this can be on the left of your screen or the center, depending on the version that you have. 
2. Click Review/Edit.
3. On the screen Status of your state return Click Delete beside your State and then click "Add another state" to add it back. This will reset it entirely; OR
4. Click Edit to go back over the entries in the program.
5. If you see the option Start, then TurboTax is displaying an estimated state refund number but has not done the customized interview for you yet.  

@navyharley

[LJerdon]

When I look at my retirement distributions on my 2022 Alabama return, the Payer column states "untitled" rather than the payer name reflected on my Federal Return. The system gives me the option to "edit" but can't change the payer. How do I correct that entry?

[ThomasM125]

@LJerdon You can only enter that information in the federal section of TurboTax. You can try deleting the form and re-entering it.

[LJerdon]

Thanks for your response. I did enter the "Payer" information on my Federal information but it did not transfer to my State data. The Payer column on all of my income does not show a Payer. I contacted Turbo Tax; the representative could not correct it so told me it wouldn't matter! 

[AnnetteB6]

You can try to go over the Alabama return again from scratch. 

Choosing 'Go Over Alabama Again' might fix the payer names. 

If it does not, then in order to get the Federal information to re-populate your state return you would need to delete the state return and start it again.  

@LJerdon

[LJerdon]

Come on Turbotax; don't revive questions from 2021 tax returns! :(