Alabama Act 2022-37

[cprug1]

Has turbo tax been updated for the Alabama Act 2022-37

[AmyC · Accepted solution]

No, it is not calculating the credits on line 12 of AL Form 40 for the federal tax deduction. AL has granted an automatic extension of 6 months until Oct 17 for these returns. If a payment is due, it must still be paid by April 18, 2022.

The ARPA Tax Relief – Alabama Department of Revenue has a  worksheet to determine the line 12 federal tax deduction. You may want to go through it and see if it will affect you. If so, you can wait to file or you can file now and amend later. I recommend waiting, if possible.

[cprug1]

Thank You!

[FlyingAce111]

Has this been fixed now? I see when I go to amend my return  it has the work sheet pop up in turbotax now.

It auto populated it with information can I just hit contine? It does have a notice saying come back after April 7th though am I supposed to enter anything here manually don't under stand the worksheet.  Considering turbotax doesn't show all the forms its referring to all that stuff is filled in by using their UI instead of forms before.  

Or is it good to go? It looks like it filled in info already automatically and asks to just check it 

[ErnieS0]

Alabama recently passed new legislation that impacts users with the child tax credit, earned income credit, or dependent care credit. As a result, those affected won’t be able to file their return until the product update is available on April 7 .

Those who have these credits and have already e-filed will automatically have their returns recomputed by the AL DOR. From there, it will be determined if it provides a higher Federal Income Tax Deduction.

[keb4au]

It is after April 7 and this message still shows up in my Turbo Tax return for Alabama.  What am I supposed to do?  I would like to go ahead and submit it but it acts like it will be a mistake.  

[AmyC]

AL issued the change during tax season and gave an automatic 6 month extension because they had to change their e-file system as well as the software companies. 

See ARPA Tax Relief – Alabama Department of Revenue which states:

What types of Federal American Rescue Plan Act (ARPA) funds might qualify me for an increased federal income tax deduction?

• Federal child tax credit (including advanced payments received in 2021)
• The earned income tax credit
• Federal child and dependent care credits

If you did not claim any of the above credits on your federal return, then you are not eligible for the enhanced Alabama Federal Income Tax Credit.

An automatic six-month extension is granted until October 17, 2022, for 2021 individual income tax returns.  However, there is no extension for payments. 

@keb4au if the credits apply, you should wait.