Is there any problem with this software that it doesn't take Self-employment tax into consideration for Alabama State deductions?

[BMcCalpin · Accepted solution]

I am not sure what you mean by "it doesn't take Self-employment tax into consideration for Alabama State deductions".

Please note that the current year's (2018) self-employment tax is actually deductible in 2019, per the Alabama Department of Revenue. They say:

"The self-employment tax must be deducted as an itemized deduction on the cash basis.  The Department’s position has been that the self-employment tax is considered paid when the federal tax return is completed and filed, whether the monies used to pay it came from estimated payments, withholding or money paid with the return.  When the tax return is completed and filed the taxpayer is able to determine how much of his estimate and/or withholding is used to pay federal income tax and how much is used to pay self-employment tax, and not until then." Please see https://revenue.alabama.gov/individual-corporate/faq/individual-income-tax/

This is why TurboTax asks you about 2017's self-employment taxes during the Alabama state interview. Since they were actually considered to be paid in tax year 2018, they will be deducted on the 2018 return.