What Documents Do I Need to File Taxes?
From Tax Guide.
Tax Guide · Arab, Alabama
How to File Taxes in Alabama
Alabama has its own income tax return. Learn who files Form 40 or Form 40NR, what you need, and how the state return relates to your federal return.
The short answer
How do I file taxes in Alabama?
To file taxes in Alabama, you complete your federal return and a separate Alabama income tax return, and the Alabama return is built largely from the numbers on the federal one.
Alabama has its own income tax, its own forms and its own rules. Filing the federal return with the IRS does not file your state return, so most people who live or earn income here prepare two returns for the same year.
The usual order is simple. Gather your income and deduction paperwork, prepare the federal return first, then prepare the Alabama return using the federal figures as a starting point. Most income that is taxable on your federal return is also taxable in Alabama, with some important exceptions covered below.
Which form
Do I file Alabama Form 40 or Form 40NR?
Alabama residents and part-year residents file Form 40, and nonresidents who earned income in Alabama file Form 40NR.
Which form applies depends on where you lived during the year and where your income came from. Someone who moved into or out of Alabama partway through the year is treated differently from someone who lived here all twelve months, and a person who lives in another state but works here may still owe Alabama tax on that work.
If your situation crosses state lines, the details matter. Wages, rental income and business income are each sourced in their own way, so this is a good place to ask before you file rather than after.
| Your situation | Alabama form |
|---|---|
| Lived in Alabama all year | Form 40 |
| Lived in Alabama for part of the year | Form 40 (part-year resident) |
| Live elsewhere, earned income in Alabama | Form 40NR |
General guide only. Your own facts decide which form applies.
What is different
What is different about Alabama income tax?
Alabama follows the federal return in many places but departs from it in a few important ways, and those differences can change your bottom line.
Alabama does not tax Social Security benefits, military retirement pay or unemployment compensation. Many traditional pensions are exempt, and people 65 and older get a partial exclusion for other retirement income, but IRA and 401(k) withdrawals can otherwise be taxable. Our guide on retirement income and Alabama taxes walks through this.
Alabama also lets you deduct federal income tax you paid. That means a change to your federal return, such as an amendment, can change your Alabama return too. If you fix a federal mistake, see our page on how to amend a tax return, because the state return may need to be amended as well.
One thing Alabama does not have is a state earned income credit. You may still qualify for the federal one, which is a separate matter.
- Social Security benefits are not taxed by Alabama
- Military retirement pay and unemployment compensation are not taxed by Alabama
- Federal income tax paid is deductible on the Alabama return
- There is no Alabama earned income credit
Getting ready
What do I need to file my Alabama return?
You need the same core paperwork as your federal return, plus anything specific to Alabama such as proof of residency dates if you moved.
Start with your income documents: W-2s from employers, 1099 forms for interest, dividends, retirement distributions or contract work, and records of any self-employment or rental income. Add your Social Security numbers for everyone on the return, last year's return if you have it, and bank details if you want a refund by direct deposit.
For deductions and credits, gather mortgage interest statements, property tax records, charitable giving records and childcare or education paperwork. Our checklist of tax documents to bring to your preparer covers the full list.
Please do not email or upload Social Security numbers or tax documents through a website contact form. Bring them to the office or call us first and we will tell you the safest way to get them to us.
After you file
How do I pay or check my Alabama refund?
The Alabama Department of Revenue runs an online service called My Alabama Taxes where you can check a refund, view a bill or respond to a letter.
If you owe Alabama tax, payment is due with the return or by the deadline the state sets, and an extension of time to file is not an extension of time to pay. If you are expecting a refund, the state processes it on its own schedule, which can differ from the IRS timeline. See how to check your tax refund status for both.
Our My Alabama page collects the refund, account and bill tools for the Alabama Department of Revenue and the IRS in one place.
Common questions
Do I have to file an Alabama return if I filed federally?
Generally yes, because the state return is a separate filing, though whether you are required to file depends on your income and residency.
Some people owe no Alabama tax and still have a reason to file, for example to claim back tax that was withheld from their pay. Others are not required to file at all. The rules turn on your filing status, your income and where it came from, so we confirm the current requirements each season instead of guessing.
Local rules can matter too. Some Alabama cities and counties have their own occupational taxes on payroll, which are separate from the state income tax return.
- Federal and Alabama returns are two separate filings
- You may want to file even if you owe nothing, to recover withholding
- Local occupational taxes are not part of the Form 40
How we can help
Help with your Alabama and federal returns in Arab
Melton Tax Services prepares individual, family, business and self-employed returns, including the Alabama return that goes with your federal filing.
Our income tax preparation service covers both returns together, so the numbers line up and the state differences are handled as part of the same visit. We serve Arab and the surrounding area.
To get started, call 256-586-4635 or use our contact page, and we will tell you what to bring.
Answers
Questions about filing in alabama
Do I have to file a state tax return in Alabama?
Most people who live in Alabama and have income above the filing threshold need to file an Alabama return. The threshold depends on your filing status and income, so we confirm the current requirements each year.
What is the difference between Form 40 and Form 40NR?
Form 40 is for Alabama residents and part-year residents. Form 40NR is for people who live in another state but earned income in Alabama.
Does Alabama tax Social Security?
No. Alabama does not tax Social Security benefits, although those benefits may be partly taxable on your federal return.
Can I file my Alabama return without filing a federal return?
The Alabama return is built from federal figures, so the two normally go together. If you are not required to file federally, we can look at whether the state still requires a return from you.
Where can I check the status of my Alabama refund?
You can check it through My Alabama Taxes, the Department of Revenue's online service. Our My Alabama page has links to that tool and to the IRS refund tool.
What if I made a mistake on my Alabama return?
Alabama returns can be amended, and this often happens alongside an amended federal return. Do not ignore the mistake; call us and we will explain the next step.
Read next
Related reading
Is Retirement Income Taxed in Alabama?
From Tax Guide.
How to Check Your Tax Refund Status
From Tax Guide.
How to Amend a Tax Return (Form 1040-X)
From Tax Guide.
Income Tax Services
A service Melton Tax Services provides.
Melton Tax Services
Questions about your taxes or your business?
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