Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 27, 2021 3:16:44 PM

Can someone please help me with the following?: I am being asked about "Value of home" on State Tax Form 40 for Alabama but I live in an apartment.

0 3 1424
3 Replies
Level 15
Feb 27, 2021 3:30:16 PM

Where exactly are you being asked this?  It may related to determining if you provided more than 50% of support. Does it actually say Value of HOUSING?  If so, that would be your rent.

New Member
Feb 27, 2021 3:52:08 PM

It was under the Catastrophe Savings account section. However, I do not invest in this/ I do not have an account. 

When prompted to enter information at this section, I did not enter any numbers. 

I do not understand why it would ask for value of home 

Level 15
Feb 27, 2021 4:45:46 PM

Residents of Alabama can open a regular savings or money market account and deem it a Catastrophe Savings Account. Such a designation means that the contributed money and its earnings must go to cover repair costs and losses from damage to the account owner's principal residence.

 

The interest earned on the CSA is tax-free as long as the account owner doesn't exceed the maximum contribution levels. Residents can even claim a personal income tax deduction for CSA contributions, subject to a cap based on their homeowner's hazard policy's deductible amount.

 

I suspect that, when you entered a 1099-INT, it asked you if this was a CSA, and you accidentally checked Yes. So go back and check.