Alabama form 40 and 40NR required by Alabama special rules???

[smiley2021]

Turbo Tax is saying I need both forms but it is not supported by Turbo Tax.

We lived in Georgia from 1/2019 - 3/2019 and moved to Alabama in 4/2019.   My wife worked in Alabama all of 2019 and I worked in Georgia all of 2019.   So do we really need to file but both a Form 40 and 40NR?  

[SusanY1]

Yes, since you were a part-year resident and you also had income from Alabama sources while a non-resident during the same tax year.

In your case, if I understand correctly you were a part-year resident but your wife had Alabama income during the period of non-residence (January - March) which requires you to use both forms according to Alabama's instructions.

The instructions are here: Alabama Form 40NR Booklet for reference (this issue is addressed at the top of the middle column on page 5.)

[smiley2021]

Thanks.   So I wasted my money on Turbo Tax since they don't support this, right?   Is this something a person can do on their on?  Or do I need to go to a tax place?

[dephi]

I'd like an answer from the TT team on this?  This should have EASILY been something to warn customers BEFORE we paid. Why is this issue being show to users AFTER we paid?

[DawnC]

You can file an Alabama non-resident return (40NR) using TurboTax.  

How do I file a state nonresident tax return?    @dephi 

[dephi]

not according to TT. It would not let me continue filing both 40 (part time) and 40NR.  see screenshot.

1. how would someone proceed?

2. if pushed forward without 40NR, how does one go back to TT and file the 40NR?

thanks

[MarilynG1]

You can't be both a Non-Resident and a Part-Year Resident at the same time; if you lived in Alabama at all during 2024, file a Part-Year Resident Return.

Here's more info on How to File a Part-Year Resident Return and  Allocating Income for a Part-Year Resident..

Details from Alabama Dept. of Revenue.

@dephi 

[zbonn181]

This is inaccurate and untrue. They were not a nonresident and a part-year resident at the same time, they were one each for a distinct portion of the year. The original poster is correct that both form 40 and form 40NR are required by AL in the situation they have described, as per outlined below:

You MUST Use Both Form 40 and Form 40NR If:
You had sufficient income to require the filing of
a part-year return and also had income from Alabama
sources while a nonresident during the same tax year. In
this case, both the total personal exemption and the dependent exemption must be claimed on the part-year
resident return. No exemption can be claimed on the
nonresident return. The part year resident return should
include only income and deductions during the period of
residency, and the nonresident return should include
only income and deductions during the period of non -
residency.

[zbonn181]

@dephi 

I have also encountered your exact situation with turbotax refusing to file both Form 40 and 40NR. Unfortunately, the only option appears to be to print your AL forms and mail them in. If you have already e-filed form 40, but you are certain you did so correctly, only including income and deductions from during the period of residency, then I believe all you should need to do is mail in an accompanying form 40NR as an amendment to the following address:

Alabama Department of Revenue, P O Box 327469, Montgomery, AL 36132-7469 in that one ensuring you only include income and deductions from during the period of nonresidency.

I am not an accountant so I would recommend still doing your due diligence, but I have done extensive research on this exact situation for myself and this is what I did and would recommend.

I realize a good amount of time has passed since your comment, so I would also appreciate if you would be able to share if you did the above or anything different and if it worked. Thanks!

[dephi]

Thanks, but, this is not an accountant issue... jts a business practice issue.  I only discovered this AFTER I paid TurboTax, otherwise I would NOT have paid for state and used a professional.  This coat me over $700.

My solution is easy. Lawsuit. 

 Find all incidents where TurboTax failes to notify a filer before payment of a situation they cannot address. This should easily be thousands.