Where do I enter the number that goes on AL Form 40, Part 1, Line 8. State of AL has ruled I can enter -25,000 in that line to make part of my severance tax free.

[AmyC]

Yes, that is the correct place. Our program offers you all the other things that go in part 1, that has names. Line 8 is a blank jungle and our program does not offer you the ability to go there without making sure that is what you really want to do. It is  not a straight path and there is an alternate route available. Here are your two options:

Option 1: Download the desktop software, go into the Forms mode, go to AL 40, part 1, line 8, right click and override the box, type in -25,000 and the description, court ruling. This will void your accuracy guarantee.The income is on line 8 of part 1 and totals on line 9.

Option 2: Enter the Alabama return from online or desktop, the program will ask about Business Expense Adjustments. The bottom line says Other Adjustments, you can enter -25,000 there. The money washes out just the same, it goes into the line 9 total of lines 1-8 for part 1.

With option 2,You will probably receive a letter from the state saying that you need to send your business, schedule C. Instead, you mail them the court ruling. It might not hurt to print this out and send it to them as well. Your accuracy guarantee is still in place.

[swellkarl]

I can't seem to find where to enter Business Expense Adjustments in the online version.  Where is it?

[JohnB5677]

To answer business related questions you will need either Self-Employed version of the software.

You would start out:

1. In the Self Employed section
2. I'll choose what I'll work on
3. Select Business Income and Expenses
4. Continue through the questions and complete your expenses.