Live in AL work in TN - error code AL40-050 ?

Forum|Forum|6 years ago
March 26, 2020
4 replies
74 views

My Alabama state return was rejected with error code AL40-050: This return could not be processed for electronic filing by the state. Alabama Department of Revenue has returned the file with the following message: "Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. Note: plus/minus +/- $3.00 variance allowance has been added to allow for rounding errors.

I'm wondering if the error has something to do with my situation -- I live in Alabama, but work out of Tennessee. I entered everything exactly as it appeared on my W2. My W2 has boxes 15-20 blank, so I left the corresponding boxes in TurboTax blank as well. Should I instead have entered my Tennessee wages there, as Alabama wages?

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Best answer by AmyC

Please go back and add your TN wages in the bottom of the W2. Use the federal ID number for the TN ID.

You could not have a correct AL ID number for your TN job. AL should be taxing all income without your having to do that. Once you pick resident for the state, all income should automatically go on that state return.

Your error means AL wages plus out of state wages. By adding TN on your W2, this should solve the problem.

:"Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2.

JamesG1

Level 15

Do you have only W-2 income? It sounds like you had no state income tax withheld of any kind withheld on your W-2's? is that correct?

AL has a claim on all your income, even what you earned in TN. Under My Info, you should list AL as your Resident state. Under your state return, you should file an AL Resident tax return. There will be no TN tax return.

Make sure that the TN income makes it to your AL tax return. I do not think you will, but you may have to make the changes that you talked about on lines 15-20 of your W-2.

To view your state tax return, follow these steps.

Down the left side of the screen, click on Tax Tools.
Click on Tools.
Under Other helpful links, click on View Tax Summary.
Down the left side of the screen, click on State Tax Summary to see the actual tax return that you prepared.
Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
Down the left side of the screen, click Back to return.

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emilyharris904Author

Level 2

Hi James,

Thank you so much for your response! I only have W-2 income, and it doesn't look like any state income tax was withheld -- only federal.

AL is already listed as my resident state under My Info. I don't see any options under State to bring my TN income into my AL return. So I'm still thinking I will need to enter my TN wages as AL wages under the Federal section in TurboTax, even though it won't match my W2. What are your thoughts?

Again, I really appreciate your time and advice!

Best,

Emily

AmyCAnswer