I need assistance to understand what these mean under : LET'S CHECK
for any Alabama Deductions Section...
The Misc. Itemized deductions subject to the 2% Ala. AGI
and the Other Itemized deductions not subject to 2% Ala. AGI
Many thanks
If you did not enter all your itemized deductions in Deductions & Credits, you have another chance to enter those expenses on the Alabama screen Let’s Check for any Alabama Deductions. Enter these expenses—if you want—in Alabama if you did not enter them in Deductions & Credits in Federal.
Miscellaneous Deductions Expenses Subject to the 2% Limit include:
Miscellaneous Deductions Expenses NOT Subject to the 2% Limit include:
The majority of your itemized deductions will flow from your federal itemized deductions. Items such as medical and dental expenses, property taxes, state tax and charitable contributions are items not subject to 2% of your AGI. In other words, you would get the full deduction.
On the other hand, most miscellaneous deductions cannot be deducted in full and must be reduced by 2% of your Alabama adjusted gross income. Generally, the 2% limit applies to job expenses you paid for which you were not reimbursed. The limit also applies to certain expenses you paid to produce or collect taxable income.
In order to get a tax benefit on your Alabama return, 2% of your state adjusted gross income would have to be greater than the deduction. Whatever deduction remains, is your deduction on your Alabama return.
The miscellaneous itemized deductions that are NOT subject to the 2% limit are as follows:
I appreciate the feedback but I'm still at a loss of what I should do...or what to input if anything.
If you did not enter all your itemized deductions in Deductions & Credits, you have another chance to enter those expenses on the Alabama screen Let’s Check for any Alabama Deductions. Enter these expenses—if you want—in Alabama if you did not enter them in Deductions & Credits in Federal.
Miscellaneous Deductions Expenses Subject to the 2% Limit include:
Miscellaneous Deductions Expenses NOT Subject to the 2% Limit include: