Alabama Exempt Income RS Form 2023

[dspb]

How do I change the Exempt amount on my Alabama RS Form.  I have income from military retirement, a small defined benefit plan, and I made a Qualified Charitable Distribution, all of which should be exempt income in Alabama.  But, Turbotax transferred all that income to my state return and I can't change it, even when I go into the form view.

Seems like a big glitch in Turbo Tax.

Any ideas on a fix, work-around, or different way to enter this income? 

[DMarkM1]

Yes, you are correct AL does not tax your military retirement benefits nor defined benefit plan distributions and the Qualified Charitable Distribution (QCD) is non-taxable at the federal level so does not transfer to your AL state return.  Below are the steps to verify your entries.

1. Click the "State Taxes" tab
2. Continue
3. Edit Alabama
4. Update the "Income" section
5. You will arrive at a page titled "About your retirement distributions" 
6. You will see the list of distribution sources 
7. The QCD should already be excluded from AL Taxable (If not see the steps below to verify federal entries)
8. Edit the Military Retirement
9. Alabama Special handling Select "Yes"
10. Select Military Retirement from the dropdown
11. Continue
12. Edit the Defined Benefit item
13. Alabama Special handling Select "Yes"
14. Select Defined Benefit from the dropdown
15. Continue

Assuming you meet the the age requirement- 70.5 for a QCD

1. In the step-by-step select the income tab
2. I'll choose what I work on
3. Retirement Plans
4. Update "IRA...1099R"
5. Edit the 1099R for the QCD
6. Verify the form entries
7. Continue to the page titled "About this Retirement Account"
8. Assuming you meet the age requirement you will be asked about Required Minimum Distribution (RMD)
9. Answer yes or no as applicable 
10. Again assuming you meet the the age requirement- 70.5
11. Next you will be asked about a Transfer to Charity
12. Select as applicable (All or Part)  (Reminder also, QCD cannot include any distributions from non-deductible contributions)
13. Continue through the RMD questions back  to the Summary Page
14. Now go back to the "State Taxes" tab
15. Continue
16. Edit Alabama
17. Update the "Income" section
18. You will arrive at a page titled "About your retirement distributions" 
19. You will see the list of distribution sources 
20. The QCD should now be excluded from AL Taxable

[dspb]

Thanks for the quick reply.  I figured it out by going into the "Forms" view and editing the "Pens Excl Wks.  On that form, I clicked the second box in the "Dist Code" "#" Column.  That solved it.

My desktop version of TT Home & Business, doesn't offer a step to "Update the Income."  I went around and around on that.

Thanks.