Fed 1040 Sch 1-A, Part 5, line 37, Enhanced Deduction for Seniors is correctly showing $12,000 for our joint return, both over 65.
However, the state is only calculating a single $6000 deduction. Alabama Sch RS, Part 2, Line 10 is marked yes (...if “Yes”, each taxpayer is eligible up to $6,000). State is identified as a joint return and the ages enter on Fed are correct.
How do I edit this, so the State return correctly shows $6,000 each for a total of $12,000?
Thanks!
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You are confusing the federal enhanced $6000 deduction with the Alabama $6000 exclusion from retirement income which applies only to those with retirement income. Alabama has nothing to do with the extra standard deduction on the federal side.
Under Alabama’s Retirement Exclusion, even if only one spouse has a qualified retirement income distribution, if both are over 65 and married filing jointly, Alabama allows each spouse to claim the $6,000 per-person exclusion for a total of $12,000 (See Alabama sch RS) as long as it does not exceed the total taxable income (which is does not). However, I can't seem to correct the form.
Any help out there for this software issue, please?
Bsch4477... thank you for your reply! You are correct, I should have said Alabama’s Retirement Exclusion.
Resolved - I read the Alabama Tax code again and now I get the impression the $6000 deduction is per individual. So, each spouse would have to have had a qualified distribution to claim a total of $12000.
Gotta love taxes.
Thanks again for any reviews.
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