Active Duty that Retired with intent to return to SLR. Part-time or Non-Resident or Both in this situation?

[LocAltax237]

Active duty military with SLR Florida.  During the last year of Active duty, was residing in Alabama while stationed across the border working in Florida.  Retired 1 August 2022 with the intent to move and return to FL as soon as possible.  Worked a job from 1 August to 1 October that took AL taxes out then got a new job based in FL where I was training (and physically located) through the end of the year (but dependents resided physically at our Alabama address), this job took AL taxes out.  Was able to finally move everyone physically back to FL March 2023.

My questions—for filing 2022 Alabama taxes, does the situation fall under Non Resident or Part Time Resident (August through end of Dec) or their “Special” where I need to file both the 40NR and 40 part time.

Also is it correct to assume this same filing will be done for 1 Jan-1 March for 2023 taxes?

Thank you.  

[ErnieS0]

You will only need to file a part-year Alabama return if I understand your question correctly.

 I’m assuming from 1 January to 1 August 2022 you were active duty military and had no other pay. Non-resident military personnel merely having a duty station within Alabama (whose legal residence is not Alabama) are not required to file an Alabama income tax return unless they have earned income from Alabama sources other than military pay.

Upon retiring from the military on 1 August you became an Alabama resident because that was your physical and permanent residence. Alabama taxes all income, so your Florida employer correctly withheld Alabama tax.

You would also file a part-year AL return in 2023 and report as AL income your FL earnings until you became a FL resident. Be sure to tell your employer so they will stop withholding AL tax.

Thank you for your service.