Alabama Form 40

Forum|Forum|2 years ago
April 8, 2024
3 replies
29 views

Aabama Form 40 not showing income reported on federal return (defined benefit plan payments taxable) but not reported on Alabama return (defined benefit plan payments not taxed in Alabama).

DavidD66

Level 15

If you received Income from a traditional pension, a defined benefit plan, they are exempt from Alabama’s state income tax, and have been for decades. That includes pensions from both public and private employers. Beginning with tax year 2023, Alabama also exempts the first $6,000 in income from 401(k)-type accounts and individual retirement accounts (IRAs), known as defined contribution retirement plans, for taxpayers 65 and older.

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Springs01Author

Level 2

I agree that Defined Benefit Plan payments are exempt in Alabama, but shouldn't that income and source be listed on Form 40, Part IV, line 5 (Do you have income which is reported on your Federal return but not reported on your Alabama return)?

AmyC

Level 15

Yes, it should be listed there. If not, follow these steps:

Desktop version:

Save your return while closing the program.
Update the program
Open
Enter the information again.

Online version:

A full or corrupted cache can cause problems in TurboTax, so sometimes you need to clear your cache (that is, remove these temporary files).

For stuck information follow these steps:

Log out of your return and try one or more of the following:
- Don't use Internet Explorer.
- Clear cache and cookies,
- Sign in using a different browser.
- Sign in using a different device.
Log back into your return

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