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Level 2

Reporting income from an Alabama estate on 2020 Alabama 40NR

We had a small amount of income from an Alabama estate that must be reported on 2020 Alabama 40NR.

 

Because Alabama has a higher estate tax exemption than the Federal, the income from an Alabama estate (reported on Alabama K-1) is slightly lower than the Federal income (reported on the corresponding Federal K-1).

 

Should the Federal K-1 amount be reported on Alabama 40NR Schedule E, Part II, Line 6, column B?  Or should it be the amount from the Alabama K-1?

 

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Employee Tax Expert

Reporting income from an Alabama estate on 2020 Alabama 40NR

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Employee Tax Expert

Reporting income from an Alabama estate on 2020 Alabama 40NR

The 40NR Schedule E, Part II Line 6 Column B is the federal amount.  The Alabama amount is in Column C.

 

Nonresidents are taxed on income from estates and trusts only to the extent that the income was earned in Alabama. The administrator, executor, or trustee should advise you of the amount to report.

 

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Level 2

Reporting income from an Alabama estate on 2020 Alabama 40NR

So if for the same estate, the Federal K-1 shows $1,500 in income, and the same estate issues an Alabama K-1 showing $1,100 in income, then column B = $1,500 and column C = $1,100?

Employee Tax Expert

Reporting income from an Alabama estate on 2020 Alabama 40NR

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