Do I need to file a state of Alabama return? Both parents passed in 2021 at the age of 68. I have last year's taxes and they didn't file but it looks like they owe now.

[DavidD66]

Can you clarify your question.  Are you asking if you should file an Alabama return for your parents who both passed away in 2021?  Were they Alabama residents?  If so, then probably.  You said you have last year's taxes and they didn't file... What do you mean you have last year's taxes?  What did they not file?  

[DTGo261510]

Yes, they both were lifelong residents of Alabama. I have their 2020 tax papers but there is no state tax forms with it. They paid a tax professional to prepare it for them. I've started a return for them on TurboTax and have started the state form, but it is telling me "Last year's AL tax liab must be entered". "Enter tax liability from 2020 tax return Form 40, line 18, or Form 40NR line 20".  I'm assuming that Form 40 is the 1040 form? I'm not sure why they wouldn't have filed a state return last year. Last year's income was more than it was this year since they both passed away in September. He had a pension and both received social security. From what I've been able to find on Google, they are above the income threshold and should have filed last year and this year, but then again, I'm no expert. 

[AmyC]

For AL, a return is required for MFJ with gross income over $10,500. There are many exclusions including most pensions. See Form 40 Instructions. They may not owe money, but should file.

You will want to contact AL about last year's return.  You may be able to get  a copy from the state. You can delay filing the 2021 Alabama return since the laws changed in February, The ARPA Tax Relief – Alabama Department of Revenue should not affect your parents other than an automatic six-month extension is granted until October 17, 2022, for 2021 individual income tax returns.  However, there is no extension for payments. You can pay an estimated amount to avoid penalties.

If you need to file a state return for last year, Turbo Tax prior year products can be purchased here.

I am very sorry for your loss.