The IRS has a $13,850 threshold on the need to file a return or if you earn less than that, then you would get all of your income taxes withheld back. Alabama does not follow the same rules as the IRS. Alabama does not have a rule that says a student or minors wages receives special treatment. In fact, the rule states that a students income is treated as any other individual who has a requirement to file a return. This means if they are an Alabama resident who had income of more than $4,500 as a single individual, they are required to file an Alabama state return and pay taxes on their income in the same manner that everyone else does.
"Dependent’s and Student’s Income. Dependents who are residents of Alabama must file a return if they meet the requirements under You Must File A Return If… on this page. A student’s income is fully taxable to the same extent as other individuals who are required to file a return. The dependent or student can claim a personal exemption of $1,500, and his or her parents may claim a dependent exemption if they provided more than 50% of his or her total support"
The IRS has a $13,850 threshold on the need to file a return or if you earn less than that, then you would get all of your income taxes withheld back. Alabama does not follow the same rules as the IRS. Alabama does not have a rule that says a student or minors wages receives special treatment. In fact, the rule states that a students income is treated as any other individual who has a requirement to file a return. This means if they are an Alabama resident who had income of more than $4,500 as a single individual, they are required to file an Alabama state return and pay taxes on their income in the same manner that everyone else does.
"Dependent’s and Student’s Income. Dependents who are residents of Alabama must file a return if they meet the requirements under You Must File A Return If… on this page. A student’s income is fully taxable to the same extent as other individuals who are required to file a return. The dependent or student can claim a personal exemption of $1,500, and his or her parents may claim a dependent exemption if they provided more than 50% of his or her total support"
I am not sure if I buy that as Section 40 of the Alabama Code that defines taxes states "Income shall be computed on the basis of the same taxable year and in accordance with the same method of accounting that the taxpayer properly employs for federal income tax purposes." I did notice however that the definition section of net income for individuals 40-18-12 was repealed so maybe something else is in the works with the changes to overtime wages that was passed recently.
As Vanessa A indicates above, there's no special treatment of the income of a student on an Alabama return.
A student's income is not listed as excludable on the Alabama Department of Revenue's Income Exempt from Alabama Income Taxation page.