No, there is not a reciprocal agreement between Georgia and Alabama. You will file the Georgia return as a nonresident and the Alabama return as a full year resident. Prepare the nonresident state return first.
Resident State: All income worldwide is required to be
reported on your resident state return. Any money that is also taxed in a
nonresident state allows you to use "credit for taxes paid to another state" when you complete your resident state return.
Your resident state does not want you to pay tax twice on the same
income. The credit will be the amount of tax charged by the nonresident
state or the tax that would have been charged by the resident state, whichever
is less.
Nonresident
State: Any money earned in a
nonresident state is required to be reported on that state tax return (with the
exception of reciprocal agreements which does not apply in this case).
The nonresident state will tax any income earned that is derived from that
state or while you were in that state for work.
You will allocate the taxable income for Georgia.
