topic Alabama Form 40 in Get your taxes done using TurboTax

Alabama Form 40

Springs01 — Wed, 11 Feb 2026 08:42:50 GMT

Aabama Form 40 not showing income reported on federal return (defined benefit plan payments taxable) but not reported on Alabama return (defined benefit plan payments not taxed in Alabama).

Re: Alabama Form 40

DavidD66 — Tue, 09 Apr 2024 00:23:06 GMT

If you received Income from a traditional pension, a defined benefit plan, they are exempt from Alabama’s state income tax, and have been for decades. That includes pensions from both public and private employers. Beginning with tax year 2023, Alabama also exempts the first $6,000 in income from 401(k)-type accounts and individual retirement accounts (IRAs), known as defined contribution retirement plans, for taxpayers 65 and older.

Re: Alabama Form 40

Springs01 — Tue, 09 Apr 2024 17:32:19 GMT

I agree that Defined Benefit Plan payments are exempt in Alabama, but shouldn't that income and source be listed on Form 40, Part IV, line 5 (Do you have income which is reported on your Federal return but not reported on your Alabama return)?

Re: Alabama Form 40

AmyC — Sun, 14 Apr 2024 22:25:37 GMT

Yes, it should be listed there. If not, follow these steps:

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