Do you have to file state taxes in Alabama?

Do I Need to File an Alabama State Tax Return? If you are an Alabama resident, you will need to file a tax return if you earn more than the minimum income requirements for your filing status. If you are a part-time resident, you have to file if you earn more than the minimum requirement while you are living in Alabama.

Who needs to file taxes in Alabama?

All Alabama residents who earn at least $5,200 (or $10,500 as a married couple) are required to file their Alabama income tax return. If you are an Alabama resident and have been working in a different state, you also need to file your return.

Does everyone have to file state taxes?

Not everyone has to file state taxes. Typically, the need to file is triggered if you live in a state (see below) and you meet certain criteria. … Filing a federal return – Many states will require you to file state taxes if you’re also required to file federal taxes.

Can you be exempt from Alabama state taxes?

If you had no Alabama income tax liability last year and you anticipate no Alabama income tax liability this year, you may claim “exempt” from Alabama withholding tax. To claim exempt status, check this block, sign and date this form and file it with your employer.

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What income is taxable in Alabama?

All income is subject to Alabama income tax unless specifically exempted by state law. The term “income” includes, but is not limited to: Wages including salaries, fringe benefits, bonuses, commissions, fees, and tips.

Who is exempt from filing taxes in Alabama?

Alabama’s personal exemption is $1,500 if your filing status is single or married filing separately, or $3,000 if your status is married filing jointly or head of family with a qualifying person.

Is Social Security taxed in Alabama?

Social Security Benefits: Alabama doesn’t tax Social Security benefits, though. That’s another big plus for retirees in the state.

How much does it cost to file a state tax return with TurboTax?

Using the desktop editions of TurboTax there is currently a $19.99 fee to e-file a state income tax return. This fee can be avoided by printing and mailing the state tax return.

What happens if you dont file state?

Just like other crimes, the punishment can include time in jail. However, the majority of taxpayers who don’t file their state returns are subject to penalties, interest and other fees in addition to the amount of tax due. And since your account is charged on a monthly basis, the longer you wait, the more you’ll pay.

Do I have to pay Alabama state taxes if I work in another state?

If you are an Alabama employer with Alabama residents working outside the state of Alabama, you will need to withhold Alabama income tax on those residents unless you are withholding tax for the state in which the employee is working in.

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Is Alabama a mandatory withholding state?

Alabama is one of many states which impose a state tax on personal income. State withholding tax is the money an employer is required to withhold from each employee’s wages to pay the state income tax of the employee. … Alabama income tax is required to be with- held from wages paid to employees who are withheld.

Are there local payroll taxes in Alabama?

Alabama does not have any reciprocal agreements with any other states. There are local income (or occupational) taxes imposed in certain Alabama cities and counties. Please contact your municipality for more information.

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