Alabama RS Form 2023

[dougreed67]

Roth Conversion taxed in Alabama RS form even though basis exists in the Trad IRA.  No tax on the federal.

[dougreed67]

Note: RS form is new in 2023

[DanaB27]

It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[Cana140]

I seem to have the same issue as dougreed67, how do I fix this?

[DanaB27 · Accepted solution]

You will have to review your entry on the “Some or All of Your Distribution is Taxable” screen during the Alabama State interview:

1. On your Alabama return click “Update” next to Income.
2. Continue until the “About your retirement” screen and click "Edit”.
3. Continue to the “Some or All of Your Distribution is Taxable” screen and edit the amount next to Taxable Roth IRA conversion (should match line 18 of Form 8606).

@Cana140 

[Cana140]

I did what you recommended. It did not fit the issue. I compared my AL Form 40 line 7  from 2022 (turbo tax) to AL Form 40 line 7 2023 (turbo tax). In 2022 line 7 was 0 (Part 1 line 4b =0), but in 2023, with form RS calculation (Part 1 line 4) , line 7 included the amount, making it taxable in Form 40. It should be 0, not taxable in Federal tax and as I understand AL tax, it is also not taxable. 

[DanaB27]

It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@Cana140 

[Cana140]

Token: 

1202263

[DanaB27]

Thank you, I reviewed your return. You will have to edit your entry on the “Some or All of Your Distribution is Taxable” screen during the Alabama State interview for you and your spouse. Your Form 8606 show $4 as taxable, therefore, you need to enter $4 next to "Taxable Roth IRA conversion".

1. On your Alabama return click “Update” next to Income.
2. Continue until the “About your retirement” screen and click "Edit”.
3. Continue to the “Some or All of Your Distribution is Taxable” screen and edit the amount next to Taxable Roth IRA conversion ($4).
4. Repeat for spouse.

@Cana140