How do I amend my tax return to correct the Alabama Taxable Retirement Income?
Due to a TurboTax error, Alabama taxpayers who received an IRA Distribution and converted it to a ROTH IRA were double taxed on the income for Alabama income tax purposes. As a result, some Alabama taxpayers have overpaid their state income taxes.
If we notified you, we recommend you review your return and amend your return as soon as possible.
To review your return, follow the steps below:
Sign in to TurboTax or open TurboTax on your computer before following the instructions to amend your Alabama state tax return:
Use TurboTax to amend your state tax return
On the Tell Us Why You’re Amending screen, enter "TO CORRECT TAXABLE RETIREMENT DISTRIBUTION" as the reason for amending
On the Let’s Make Sure You’re Ready to Review screen, select No, I still have state amend info to enter, then select Continue
On the Let’s review your amended return screen, select I’ll choose what I work on
On the You’ve Finished Your Alabama Return screen, select Start next to Income
On the About Your Retirement Distributions screen, select Edit next to the distribution with the Taxable Roth IRA
Continue through the screens until you reach Some or All of Your Distribution is Taxable
Reduce the amount of the Taxable Pension or IRA by the amount showing in the Taxable Roth IRA Conversion box (for example, if $132,000 shows as Taxable Pension or IRA and $100,000 shows as Taxable Roth IRA Conversion, subtract $100,000 from $132,000 and enter $32,000 as Taxable Pension or IRA; if both amounts are the same, enter $0)
Check the Alabama Refund counter. If a refund is showing, continue through the screens. If no refund shows after making this adjustment, your return doesn't need to be amended and you can stop here
Continue through the screens until you reach You’ve Finished Your Alabama Return, scroll to the bottom, and select Done with Alabama
Follow the instructions provided by TurboTax to print, sign, and date your amended state tax return, then mail it to the address provided in the instructions
Save a copy of your amended state tax return for your records
Note: If you're a nonresident or part-year resident of Alabama and claimed a tax credit on your resident state tax return for taxes paid to Alabama, you might also need to amend your resident state return.
If you have questions, you can call us at 844-333-2161 (Monday–Friday, 8 AM to 8 PM ET). When you speak with a TurboTax expert, mention Alabama Taxable Retirement Income so they know what you’re calling about.
