AL Form 40 Part-Year and Form 40 NR

[kaylagignac1]

I worked and was a resident in Alabama last year but also moved to Texas, while still working (remotely) in Alabama. I know I have to file both the Form 40 for part-year resident AND Form 40 NR for non-resident but I can't find out HOW. I have scoured the internet and there are no actual answers for how to file both, just info saying I have to. Even the Alabama website isn't helpful. Please help!

[AmyC]

Correct. On page 5 of Resident and PY 2023 there are more instructions for how to file and what is allowed. You will only be able to file one of them with TurboTax with your federal.  I would recommend filing the part-year return with federal  since it holds more information.  Make a copy of your tax return.

Now you have options on what to do with the NR:

 1. Return to your filed and accepted return and change AL to nonresident and print out those forms and mail them in.

2.  You could create a second dummy  federal with AL as nonresident. You would only have to enter things relevant to AL. 

For the NR, Form 40NR (Print Only) and  Instructions

[kaylagignac1]

Amy,

Thank you for this- it is very helpful. I am curious as to how to file NR since it asks for totals from all sources as well as Alabama income in columns B and C, respectively. Would I answer column B with the info on my Federal returns (which includes income from when I was in Alabama AND income remote/non-res) and C with just the wages I received while working remote as a non-res? 

Or if I were to do a dummy Federal, I would only put the non-res income into federal so that NR calculates properly, leaving out income from when I was part-year res & other income from Texas? 

I'm so sorry that I'm asking so much, the Alabama website and customer service are both equally unhelpful. I have been hung up on 3 times today with no more knowledge than I had going into it :(

[kaylagignac1]

I also feel that I should add that I have worked for the same company all year in AL, and thus, only have one W-2. Not sure if that is unusual or not. 

[AmyC]

There are several ways to look at this. The correct  way is to duplicate the federal and then do the NR AL so that all the columns are filled in correctly. Having only one w2 from AL may simplify things for you in dividing up the income and forms. It will also be easier for the state to compare and total. 

Believe it or not, AL is one of the better states for actually helping people and getting problems fixed. No agency is easy to get through to at this time of year. We are here to help.