topic Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software. in Retirement tax questions

Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

gs_robinson — Wed, 28 Jan 2026 06:58:22 GMT

The software has an issue with leaving off Social Sec Income on State Return. Software support needs to investigate and fix this issue.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

xmasbaby0 — Sun, 26 Jan 2025 22:47:00 GMT

Alabama does not tax Social Security benefits.

There are 9 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

gs_robinson — Mon, 27 Jan 2025 16:06:57 GMT

I appreciate your response.

Even though Alabama does not tax Social Security income, it does require it to be reported on Form 40 on Part IV line 5. Line 5 states: Do you have income which is reported on your Federal Income tax, but not reported on your Alabama return (other than state tax refund)? Yes or No. The software incorrectly selected No. On my past Alabama state returns, TurboTax selected Yes and added my Social Security income. So, there is an issue with Form 40 for the 2024 tax year for the Alabama return. The software support team needs to correct this issue. Otherwise, I will have to manually correct this information when I print my Alabama State Return. Then, I will have to mail my return instead of using Efile. I reported this issue on a chat with Turbo Tax Support. I posted this issue in the community forum to make other people aware of it.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

VolvoGirl — Mon, 27 Jan 2025 16:50:26 GMT

Maybe it's because your SS is not taxable income on your federal return? Check your 1040 line 6b and see if anything is taxed this year.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

gs_robinson — Mon, 27 Jan 2025 17:37:43 GMT

I appreciate your response.

My Social Security income is taxable on my federal tax return. Line 6b on my Form 1040 does show taxable Social Security income. The issue is a software issue with TurboTax on Form 40 for the Alabama state return.

Please note that Form 40 Line 5 states: Do you have income which is reported on your Federal return, but not reported on your Alabama return? Yes or No. TurboTax entered No. That response is incorrect because I have Social Security income on my Federal Return that TurboTax has not entered on my Alabama return. Software personnel need to investigate and fix this issue. The Social Security income has been entered on my 2023, 2022, etc. Alabama tax returns on line 5. The Alabama requirement for reporting that income has not changed. Form 40, line 5, has not changed for 2024. It is a software issue. If it is not fixed, I must correct the issue manually when I print out my Alabama Return and mail in my return instead of using Efile.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is w...

KeshaH — Wed, 05 Feb 2025 14:58:10 GMT

We can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Once you've got your tax return open,

- click Online in the top menu bar

- Choose Send Tax File to Agent

- Log in to your Intuit Account (if you're not already)

- you'll see a message explaining that you will be providing a diagnostic copy of your return - your personal details will be changed so we will not be able to see any private information

- click send and you'll get another message with a token

Reply to this message with your token and we'll take a look to see what we can find. Please let us know if there are any states included with your return other than Alabama.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

Cindy456 — Fri, 14 Feb 2025 23:35:26 GMT

Has this issue been addressed? I am encountering the same problem. My Alabama return is lumping in non-taxable Social Security payments with taxable income.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

xraytech_2 — Sun, 08 Feb 2026 21:04:15 GMT

gs_robinson, I just wanted to give you a heads up that I just completed my 2025 taxes on TurboTax and encountered this issue. So it is still a problem this year. After reading your question I went back to look at my 2024 return and I did not catch it then, so now I have to send in an amended return. I am currently waiting on a call from TurboTax customer service to see if maybe they can forward the error to the correct person or department.

For anyone coming here to say it is not needed because Alabama does not tax SS payments, you are partly correct. While they do not tax SS payments, we are REQUIRED to include them on our tax form.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

xraytech_2 — Sun, 08 Feb 2026 21:32:18 GMT

gs_robinson, I just got off the phone with a TurboTax representative. There is a section on our Alabama taxes titled "Federal Income Not Taxed by Alabama". In this section is where you will include your SS benefits. The program is not carrying it over automatically because it is not taxed by Alabama, but because we are required to disclose this income, this would be the section where you do that. I hope this helps you for 2025 and maybe even someone else who comes here searching for this question.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is w...

JamesG1 — Mon, 09 Feb 2026 00:48:24 GMT

Alabama does not tax Social Security benefits which were taxable on the Federal 1040 income tax return. The computation is made automatically within the Alabama income tax return software.

In TurboTax, in the Alabama income tax return, the screen Federal Income Not Taxed by Alabama states:

If you reported income on your Federal return that is not taxed by Alabama and not reported elsewhere on your Alabama return, enter it below.

Such entries are reported on the Alabama Information Worksheet under Part V and are not reflected in the computations on the Alabama income tax return.

@gs_robinson

@xraytech_2

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

kp8491 — Sun, 15 Feb 2026 23:46:58 GMT

As of 2/15/26 it has not been corrected. TT apparently did not have it programmed correctly last year, either.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is w...

JamesG1 — Mon, 16 Feb 2026 00:08:39 GMT

Alabama does not tax Social Security benefits which were taxable on the Federal 1040 income tax return. The computation is made automatically within the Alabama income tax return software.

In TurboTax, in the Alabama income tax return, the screen Federal Income Not Taxed by Alabama states:

If you reported income on your Federal return that is not taxed by Alabama and not reported elsewhere on your Alabama return, enter it below.

Such entries are reported on the Alabama Information Worksheet under Part V and are not reflected in the computations on the Alabama income tax return.

@kp8491

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is w...

kp8491 — Mon, 16 Feb 2026 17:15:38 GMT

Perhaps I should clarify:

-using TT desktop

-not electronically filing Fed or State – printing and mailing returns

-TT has all the relevant SS income information

-TT does NOT transfer information to Form 40, Part IV, line 5, where the state wants to know, “Do you have income which is reported on your Federal return, but not reported on your Alabama return (other than your state tax refund)? If yes, enter source(s) and amount(s) below:” Instead, TT erroneously checks the box “NO”

-After entering all information, TT does a check for Accuracy, and says Yes to accuracy of calculations, missing information, and errors. Of course, we know that is not true, because TT has incorrectly reported Alabama’s Part IV, line 5.

This is essentially the same type issue TT has on the 2025 Federal 1040, where TT ignores the question “check here if your main home….was in the U.S. for more than half of 2025.” All the relevant information is entered, TT declares it checked for accuracy, but TT fails to populate the check box.

I have no idea if TT is sending complete and accurate information for those who file electronically, and suggest that neither do the taxpayers who do so.

Re: Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is w...

BillM223 — Fri, 20 Feb 2026 15:54:17 GMT

TurboTax does not automatically populate the list of income items taxed on the federal return that are not taxed on the Alabama return, but you are able to populate this list in Part IV of the form 40 yourself.

In the Alabama interview, proceed to the screen titled "Federal Income Not Taxed by Alabama". At the bottom of this screen, there is a table in which you can enter the description of the income item and the amount. These entries are carried directly to Part IV on the Form 40.

In addition, if any entries are made here, then the YES box on line 5 is checked.