Alabama just changed their tax law, and it applies to 2021 tax year. Is TurboTax going to update the AL tax forms?
MONTGOMERY – Governor Kay Ivey on Wednesday signed House Bill 231, sponsored by Rep. Jim Carns (R – HD 48) and Sen. Dan Roberts (R – SD 15), into law, providing tax relief for Alabama families. By Governor Ivey putting her signature on this important piece of legislation, it is being projected that Alabamians will save tens of millions of dollars.
“I am proud to sign this needed tax relief into law so that money will return directly into the hands of hardworking Alabamians,” said Governor Ivey. “I commend the Alabama Legislature for their work on this and look forward to this benefitting Alabama families this tax season.”
Effective for the tax year ending on December 31, 2021, this act allows individual taxpayers to calculate their federal income tax deduction without consideration of certain items allowed under the American Rescue Plan Act. Any reductions to the federal income tax attributable to the federal child tax credit, the earned income tax credit and federal child and dependent tax credits, will be calculated under the provisions of the Internal Revenue Code in effect on December 31, 2020. The increased federal income tax deduction will reduce the amount of tax due on an Alabama individual income tax return.
