Alabama Resident Income Tax Return (Form 40A) Instructions

Resident Income Tax Return (Form 40A) Instructions
40A Booklet TY 2023_12-21-23_F.pdf
Form

40A

revenue.alabama.gov

Booklet

 Short Return  Full Year Residents  Forms and Instructions

2023

myalabamataxes.alabama.gov

Index
G

A
Address Change … 12
Addresses of Taxpayer Service
Centers … 3
Alabama Election Campaign Fund … 10
Amended Return … 12
Amount You Owe … 10

C
Consumer Use Tax … 8 and 9
Credit Card … 10

D
Death of Taxpayer … 12
Dependents —
Birth or Death of Dependent … 10 and 11
Children … 10
Other Dependents … 10
Support of Dependents … 11
Domicile … 4
Donations of Refunds … 11 and 12

R

General Information … 12

Records — How Long To Keep … 12
Refund Status … 4
Refund, When Should I Expect? … 4
Requesting a Copy of Your
Tax Return … 12
Rounding Off to Whole Dollars … 7

H
Head of Family … 6

I
Income (Examples) —
You Must Report … 7
You Do Not Report … 7
Income Tax Withheld (Alabama) … 7
Interest — Late Payment of Tax … 12
Interest and Dividend Income … 8

M
Married Persons — Filing Joint or
Separate Return … 6
Military Personnel —
Residents of Alabama … 5
Nonresidents of Alabama … 5

Extension of Time to File … 12 and 13

F
Federal Tax Liability Deduction …8, 11 and 20
Figuring Your Income Tax … 8, 14-19
Filing Information … 4
Filing Requirements —
When To File … 5
Where To File … 10
Which Form To File … 5
Who Must File … 5
Filing Status and Exemptions —
Which Box To Check … 6
Form W-2 … 6 and 7
Forms, How To Get … 23

Salaries … 7
Setoff Debt Collection … 4 and 13
Sign Your Return … 10
Single Person … 6
Social Security Number … 6
Specific Instructions … 6-12
Standard Deduction … 8 and 9
Steps For Preparing Your Return … 5 and 6
Students and Dependents … 5

T
Tax Assistance for Taxpayers … 3
Tax Tables … 14-19

N

E

S

Name and Address … 6
Nonresidents of Alabama —
Which Form To File … 5
Who Must File … 5

W
What’s New … 2
Where To File Form 40A … 10
Writing to the Alabama
Department of Revenue … 12

P
Payments —
Check/Money Order … 10
Credit Card … 10
ACH Debit (E-Check) … 10
Penalty —
Criminal Liability … 12
Late Filing … 12
Late Payment of Tax … 12
Personal Exemption … 6 and 8
Preparer, Tax Return … 10

What’s New For 2023
Website – Check out our updated website at www.revenue.alabama.gov for
downloadable forms, fill-in-forms, instructions, and the most accurate up-to-date information available. Our website also hosts links to PC on-line filing providers supporting the Federal/State electronic filing program.
Refund Status – For the most up-to-date information concerning the status of
your current year refund, call 1-855-894-7391 or check our website.
Identity Quiz – If you happen to receive a notice to complete an ID Confirmation Quiz, it is not because you are suspected of ID theft. The purpose of the quiz
is to protect your identity as the filer and prevent loss of taxpayer dollars to thieves.

Credits – Certain tax credits are now required to be pre-approved through
MyAlabama Taxes (MAT) at www.myalabamataxes.alabama.gov. Please see the
credit instructions in this booklet and Schedule OC instructions for more information.
Negative numbers – Please enter all negative numbers with negative signs
(-). Do not use parenthesis ( ).

Page 2

★

★ Huntsville

Shoals

★

Gadsden

Tuscaloosa

★

Jefferson/
★
Shelby
Auburn/Opelika

★
★

Montgomery

Dothan

★

Mobile

★

Physical Addresses of Taxpayer Service Centers
Alabama income tax assistance may be obtained by calling or visiting any of the Alabama Department of Revenue Taxpayer Service Centers listed below. Additional forms
and instructions may also be obtained from these centers.
 Montgomery Taxpayer Service Center
 Huntsville Taxpayer Service Center
 Auburn/Opelika Taxpayer Service Center
2545 Taylor Road
4920 Corporate Drive, Suite H
1800 Samford Trace Court, Suite 100
Montgomery, AL 36117
Huntsville, AL 35805
Auburn, AL 36830
Phone – (334) 242-2677
Phone – (256) 837-2319
Phone – (334) 887-9549
 Shoals Taxpayer Service Center
 Jefferson/Shelby Taxpayer Service Center
 Dothan Taxpayer Service Center
201 South Court Street, Suite 200
2020 Valleydale Road, Suite 208
121 Adris Place
Florence, AL 35630
Hoover, AL 35244
Dothan, AL 36303
Phone – (256) 383-4631
Phone – (205) 733-2740
Phone – (334) 793-5803
 Tuscaloosa Taxpayer Service Center
 Mobile Taxpayer Service Center
 Gadsden Taxpayer Service Center
1434 22nd Avenue
851 E. I-65 Service Road South, Bel Air Tower, Suite 100
701 Forrest Avenue
Tuscaloosa, AL 35401
Mobile, AL 36606
Gadsden, AL 35901
Phone – (205) 759-2571
Phone – (251) 344-4737
Phone – (256) 547-0554
Page 3

spouses must sign the return.

Refund Status
To check the status of your current year refund, go to our Website at www.revenue.alabama.gov,
then click on “Where’s My Refund,” or call the 24 hour toll free refund hotline at 1-855-894-7391.

How To Use This Instruction Booklet
The instructions for Form 40A are divided into four main sections.
 Section 1 contains information on who must file, how to choose the correct form, and when to file a
return.
 Section 2 contains useful steps to help you prepare your return.
 Section 3 contains specific instructions for most of the lines on your return.
 Section 4 contains general information about such items as amending your tax return, how long to
keep records, and filing a return for a deceased person.
If you follow the steps in Section 2 and the specific instructions in Section 3, you should be able to complete your return quickly and accurately.

When Should I Expect
My Refund?
Wait At Least 90 Days
For Your Refund
If you do not receive your refund within 90 days of
mailing your return, go to www.revenue.alabama.gov,
then click on “Where’s My Refund,” or complete Form
IT: 489. Form IT:489 may be obtained from the Department’s website under the Forms link or from any of our
Alabama Taxpayer Service Centers listed on page 3 of
this booklet. If you call about your refund, have a copy of
your return with you or the Department may be unable to
assist you.
Each year the Alabama Department of Revenue receives over 1.8 million income tax returns. Of this number, over 1 million taxpayers receive refunds. The
Department makes every effort to process your refund
as quickly as possible, and there are several things you,
the taxpayer, can do to help us accomplish this.
The date you file your return and how you file determines when you can expect your refund. For example,
electronically filed returns are received and processed
significantly faster than returns that are mailed to the Department of Revenue. Also, if you mail in an error-free return in January or February, you can expect to receive
your refund sooner than if you wait until March or April to
file. Returns filed this close to the deadline may require
90 days to process.

Common Mistakes
Which Delay Refunds
Incorrect Name. Your refund will be issued in the
name(s) appearing on your return. If your name is illegible or misspelled, your refund may be issued in the
wrong name.
Incorrect Address. Last year the U.S. Postal Service was unable to deliver thousands of refund checks
due to incorrect addresses, or because the taxpayer
moved and failed to leave a forwarding address.
Incorrect Social Security Number. Last year approximately 80,000 returns were received with missing or
incorrect social security numbers. Your social security

number is very important; it is used for identification of
your file. Please compare the number on your return with
the number on your social security card.
Show in the blocks provided the social security numbers in the same order as the first names. For example,
the social security number of the first name listed should
be entered in the box headed “Your social security number.” The social security number of the second name
should be entered in the box headed “Spouse’s social
security number.” If separate returns are filed, the person
filing the return should enter his or her social security
number in the box headed “Your social security number,” and enter the spouse’s social security number on
line 3. It is very important that the social security numbers be listed in this order so your refund will be issued
in the correct name.
Legibility. On many returns, the name, address, or
social security number is not readable. If this happens,
the wrong information may be recorded, and your refund
may be delayed. Make sure that the information you
enter on the return is readable.
Missing Withholding Statement (W-2). Make certain the “State Copy” of all forms W-2 wage and tax
statement are attached. The Department will consider
the return incomplete if all required information is not
included.
Incorrect Computation. Many returns must be corrected each year by the Department due to simple math
errors. Before mailing your return, double check the addition and subtraction to make sure the math is correct.
This is a good idea even if someone else prepares your
return.
Misdirected Mailing. Each year thousands of returns are mailed to the Internal Revenue Service instead
of the Alabama Department of Revenue.
Filing More Than One Return. File only one Form
40, 40A, 40EZ, 40NR or electronic return for each tax
year. If it is necessary to amend your original return you
must file a completed return with the “Amended Return”
box checked. The amended return will be processed
after your original return has been processed.
Filing Copies. A copy of a return is not acceptable
unless it has the taxpayer(s) original signature(s).
Missing Signatures. Thousands of unsigned returns are received each year by the Department. Before
we can process them, these returns must be returned to
the taxpayers for signatures. If a joint return is filed, both
Page 4

Other Reasons
For Refund Delays
You Have Not Paid All Taxes Due From a Previous Year. If you owe tax for a prior year, your refund will
be applied to pay that deficiency. Any amount remaining
will be refunded to you. This will generally delay your refund 12 weeks or more.
Setoff Debt Collection. If the Alabama Department
of Human Resources, Alabama Department of Labor,
the Administrative Office of Courts, the Alabama Medicaid Agency, the Alabama League of Municipalities or
Association of County Commissions or local governmental entities, has notified the Alabama Department of
Revenue that your account is delinquent on a debt repayment, any public assistance program (including the
Child Support Act of 1979, Chapter 10, Title 38), any
Medicaid assistance program, your refund will be applied
to that debt. See Setoff Debt Collection on page 13 for
further information.
Federal Refund Offset Program. Your 2023 federal
or state refund will be taken to satisfy any outstanding liabilities owed to the State of Alabama or to the Internal
Revenue Service.

SECTION

1

Filing
Information

First, be certain you need to file a tax return. Your
marital status, filing status, and gross income determine
whether you have to file a tax return. Gross income usually means money, goods, and property you received on
which you must pay tax. It does not include nontaxable
benefits. See page 7 of the instructions to find out which
types of income you should include.

Other Filing Requirements
Refunds. Even if your income was less than the
amounts shown, you must file a return to get a refund if
Alabama income tax was withheld from any payments
made to you.
Domicile. Individuals who are domiciled in (or residents of) Alabama are subject to tax on their entire income, whether earned within or without Alabama. This is
true regardless of their physical presence within Alabama at any time during the taxable year. Domicile is
where one lives, has a permanent home, and has the intention of returning when absent. Domicile may be by
birth, choice, or operation of law. Each person has one
and only one domicile which, once established, continues until a new one is established coupled with the abandonment of the old. Burden of proof regarding change
of domicile is on the taxpayer even though he/she owns
no property, earns no income, and has no place of
abode in Alabama.
If an Alabama resident accepts employment in a foreign country for a definite or indefinite period of time with
the intent of returning to the United States, the individual
remains an Alabama resident and all income, wherever
earned, is subject to Alabama income tax. This is true
even if the taxpayer leaves no property in Alabama.
If a citizen of a foreign country comes to Alabama to
work (no matter how long he stays), buys a home, secures an Alabama driver’s license, does not intend to
apply for U.S. Citizenship, and intends to ultimately re-

turn to the country of origin, the individual will be considered to have established domicile in Alabama. In
other words, a foreign citizen domiciled in Alabama is liable for Alabama income tax on income earned from all
sources.
Military Personnel (Residents). Military personnel
whose legal residence is Alabama are subject to Alabama income tax on all income regardless of source or
where earned unless specifically exempt by Alabama law.
Military personnel (Army, Navy, Marine, Air Force,
Merchant Marine, and Coast Guard) who were residents
of Alabama upon entering military service remain residents of Alabama for income tax purposes, regardless of
the period of absence or actual place of residence, until
proof regarding change of home of record has been
made. The burden of proof is on the taxpayer though he
owns no property, earns no income, or has no place of
abode in Alabama. Under the provisions of the Soldiers’
and Sailors’ Civil Relief Act, military personnel are not
deemed to have lost their permanent residence in any
state solely because they are absent in compliance with
military orders. In addition, persons are not deemed to
have acquired permanent residence in another state
when they are required to be absent from their home
state by virtue of military orders. If the husband and wife
are both in military service, each could be a resident of
a different state under the Soldiers’ and Sailors’ Civil Relief Act. A spouse not in military service has the same
domicile as his/her spouse unless proven otherwise.
Military Personnel (Nonresidents). Nonresident
military personnel merely having a duty station within
Alabama (whose legal residence is not Alabama) are not
required to file an Alabama income tax return unless they
have earned income from Alabama sources other than
military pay. If they have earned income in Alabama
other than military pay, they are required to file Alabama
Form 40NR. A married nonresident military person with
income earned in Alabama may file either a separate return claiming himself or herself only, or a joint return
claiming the total allowable personal exemption. The
“Military Spouses Residency Relief Act” (Public Law 11197) states that the income for services performed by the
spouse of a service member shall not be deemed to be
income for services performed or from sources within a
tax jurisdiction of the United States if the spouse is not
a resident of the jurisdiction in which the income is
earned because the spouse is in the jurisdiction solely to
be with the service member serving in compliance with
military orders.
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. If a return is required, 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. See
dependent exemption on page 8.

When To File
You should file as soon as you can after January 1,
2024, but no later than the due date of your federal return. If you file late you may have to pay penalties and interest. (See Penalties and Interest on page 12.) If you
know you cannot file your return by the due date, you do
not need to file for an extension. You will automatically
be granted an extension until October 15, 2024. If you
anticipate that you will owe additional tax on your return,
you should submit your payment with a payment voucher
(Form 40V) with the box “Automatic Extension Payment”
checked by the due date of your federal return.
Except in cases where taxpayers are abroad, no extension will be granted for more than 6 months.
An extension means only that you will not be assessed a penalty for filing your return after the due date.
Interest on the additional tax due from the due date of the
return and any penalties will be assessed, if applicable,
to your return.
Original returns must be filed within two years of the
date the taxes are paid to be eligible for a refund. Criminal Liability could result from a continued failure to file
returns. (Refer to “Criminal Liability” on Page 12.)

Which Form To File
You MAY Use Form 40A If You Meet
ALL Of The Following Conditions:
 You were a resident of Alabama for the entire
year,
 You do not itemize deductions,
 You do not claim any adjustments to income such
as an IRA deduction, alimony paid, Federal income tax
paid for a prior year, etc,
 You do not have income from sources other than
salaries and wages, except for interest and dividend income, which cannot exceed $1,500,
 You are not claiming income or a loss from
Schedules C, D, E, or F, and
 You are not claiming credit for taxes paid to another state.

You MUST Use Form 40 If:
 You were a full or part-year resident of Alabama
and do not meet ALL of the requirements to file Form
40A, and

 You are itemizing deductions.

You MUST Use Form 40NR If:
 You are not a resident of Alabama, you received
taxable income from Alabama sources or for performing
services within Alabama, and your gross income from
Alabama sources exceeds the allowable prorated personal exemption. Nonresidents must prorate the personal exemption. If your Alabama gross income exceeds
the prorated amount, or filing jointly under the Military
Spouses Relief Act, a return must be filed.

You MUST Use Both Form 40 and
Form 40NR If:
 You had sufficient income to require the filing of
a part-year return and also had income from Alabama
sources while a nonresident during the same tax year. In
this case, both the total personal exemption and the dependent exemption must be claimed on the part-year
resident return. No exemption can be claimed on the
nonresident return. The part year resident return should
include only income and deductions during the period of
residency, and the nonresident return should include
only income and deductions during the period of nonresidency.

SECTION

2

Steps for Preparing
Your Return

By following these five useful steps and reading the
line-by-line instructions, you should be able to prepare
your return quickly and accurately.

Step 1
Collect all your necessary records.
Income Records. These include any Forms W-2
and/or 1099 that you have. If you do not receive a Form
W-2 by February 1, or if the one you receive is incorrect,
please contact your employer as soon as possible. Only
your employer can give you a Form W-2, and only he or
she can correct it.
If you have someone prepare your return for you,
make sure that person has all your income and expense
records so he or she can fill in your return correctly. Remember, even if your return is prepared by someone
else, you are still responsible.

You Must File A Return If…
You were a:
Full Year
Resident

Part Year
Resident

Nonresident

and your marital status at the end of 2023 was:
Single (including divorced and legally separated)
Married and living with your spouse at the end
of 2023 (or on the date your spouse died)
Single (including divorced and legally separated)
Married and living with your spouse at the end
of 2023 (or on the date your spouse died)
Single (including divorced and legally separated)
Married and living with your spouse at the end
of 2023 (or on the date your spouse died)

and your filing status is:
Single
Head of family
Married, joint return
Married, separate return
Single
Head of family
Married, joint return
Married, separate return
Single or head of family
Married, joint return
Married, separate return
Page 5

and your gross income was at least:
$ 4,500
$ 8,200
$11,500
$ 5,750
$ 4,500 (while an Alabama resident)
$ 8,200 (while an Alabama resident)
$11,500 (while an Alabama resident)
$ 5,750 (while an Alabama resident)
Over the allowable prorated exemption:

Step 2
Obtain any forms or schedules you
may need.
Before filling in your return, look it over to see if you
need more forms or schedules.
If you think you will need any other forms, get them
before you start to fill in your return. Our Alabama Taxpayer Service Centers (see page 3 of these instructions
for addresses) can supply the additional forms you need.
Also see page 23 for more information. The fastest way
to obtain forms is to download them from our Web
site at www.revenue.alabama.gov.

Step 3
Sign and date your return.
Form 40A is not complete unless you sign it.
Please sign in black ink only. Your spouse must also
sign if it is a joint return. Original signatures are required
or the return will not be accepted.

Step 4
Attach all W-2 or 1099 forms
to your return.
Attach the copy of Form W-2(s) marked “To Be Filed
With Your State Income Tax return” to the front of your
return.

Step 5
Before mailing your return.
If you owe tax, complete Form 40V. Before mailing
your return, be sure to include a completed Form 40V
along with your payment loose in the envelope.
Make sure you have an exact copy of your return for
your records.

SECTION

3

Specific
Instructions

Name and Address
Please type or print your name, address, and social
security number in the appropriate blocks.
If you live in an apartment, please include your apartment number in the address. If the post office delivers
mail to your P.O. Box number rather than to your street
address, write the P.O. Box number instead of your
street address.

Social Security Number
Each year thousands of taxpayers file returns using
an incorrect social security number. Usually this number
belongs to another taxpayer. It is very important that you
file your return using the correct social security number.
Failure to use your correct social security number(s) in
the space(s) provided WILL DELAY the processing of
your refund. Listed below are a few of the common reasons why a social security number is reported
incorrectly:
 failed to enter number on return,






memorized wrong number,
copied number wrong,
gave an incorrect number to the tax preparer, or
gave your employer an incorrect number.

IMPORTANT: Check your W-2 forms. Your employer
may be reporting an incorrect number for you.
If you are married and filing a joint return, write both
social security numbers in the blocks provided.
If you are married and filing separate Alabama returns, write your spouse's social security number on line
3.
If your spouse is a nonresident alien, has no income,
does not have a social security number, and you file a
separate return, check the "NRA" box and leave the
block for your spouse's social security number blank. If
you and your spouse file a joint return, your spouse must
have a social security number.
If you or your spouse do not have a social security
number, please get Form SS-5 from a Social Security
Administration (SSA) office. File it with your local SSA
office early enough to get your number before April 15.
If you have not received your number before April 15,
file your return and write "applied for" in the block for your
social security number.
IMPORTANT: Please notify the Social Security Administration (SSA) immediately in the event you have
changed your name because of marriage, divorce, etc.,
so the name on your tax return is the same as the name
the SSA has on record. This may prevent delays in processing your return.

Filing Status and Personal
Exemption Lines 1 through 4
You should check only the box that describes your
filing status. The personal exemption will be determined
by your filing status on the last day of the tax year.

Single
Consider yourself single if on December 31, you
were unmarried or separated from your spouse either by
divorce or separate maintenance decree.
If you check box 1, enter $1,500 on line 10.

Married
Joint or Separate Returns?
Joint Returns. Most married couples will pay less
tax if they file a joint return. If you file a joint return, you
must report all income, exemptions, deductions, and
credits for you and your spouse. Both of you must
sign the return, even if only one of you had income. The
State of Alabama does recognize a common law marriage for income tax purposes. This only applies to common law marriages entered into before January 1, 2017.
Common law marriages entered into January 1, 2017
and later are no longer recognized by the state of
Alabama.
Caution: You cannot file a joint return if you are a resident of Alabama and your spouse is a resident of another state. You should file as “married filing separate.”
You and your spouse can file a joint return even if
you did not live together for the entire year. Both of you
are responsible for any tax due on a joint return, so if
one of you does not pay, the other may have to.
NOTE: If you file a joint return, you may not, after the
Page 6

due date of the return, choose to file separate returns
for that year.
If your spouse died in 2023, you can file a joint return
for 2023. You can also file a joint return if your spouse
died in 2024 before filing a 2023 return. For details on
how to file a joint return, see Death of Taxpayer on page
12.
If you check box 2, enter $3,000 on line 10.
Separate Returns. You can file separate returns if
both you and your spouse had income, or if only one of
you had income. If you file a separate return, report only
your own income, exemptions, deductions, and credits.
You are responsible only for the tax due on your own
return.
NOTE: Alabama is not a community property state.
If you file a separate return, write your spouse’s social security number on line 3 in the space provided. If
your spouse is not required to file a return, attach a statement explaining why.
If you check box 3, enter $1,500 on line 10.

Head of Family
An individual shall be considered “Head of Family”
if, and only if, such individual is not married at the close
of the tax year, is not a surviving spouse and their qualifying dependent is not a foster child.
You may check the box on line 4 ONLY IF on December 31, 2023, you were unmarried or legally separated and meet either test 1 or test 2 below.
Test 1. You paid more than half the cost of keeping
up a home for the entire year, provided that the home
was the main home of your parent whom you can claim
as a dependent. Your parent did not have to live with
you in your home.
OR
Test 2. You paid more than half the cost of keeping
up a home in which you lived and in which one of the following also lived for more than 6 months of the year
(temporary absences, such as for vacation or school, are
counted as time lived in the home):
a. Your unmarried child, grandchild, great-grandchild, etc., adopted child, or stepchild. This child does
not have to be your dependent.
b. Your married child, grandchild, great-grandchild,
etc., adopted child, or stepchild. This child must be your
dependent. But if your married child’s other parent claims
him or her as a dependent under the federal rules for
Children of Divorced or Separated Parents, this child
does not have to be your dependent.
c. Any relative you can claim as a dependent. (See
definition of a dependent on page 10.)
If the person for whom you kept up a home was born
or died during the year, you may still file as “Head of
Family” as long as the home was that person’s main
home for the part of the year he or she was alive.
If you check box 4, enter $3,000 on line 10.

Income
All income is subject to Alabama personal income
tax unless specifically exempted by state law. The term
“income” includes, but is not limited to, salaries, wages,
commissions, income from business or professions, alimony, rents, royalties, interest, dividends, and profits
from sales of real estate, stocks, or bonds. Military pay
is taxable income except for compensation received for
active service in a designated combat zone.

Examples of Income
You MUST Report
The following kinds of income should be reported on
Form 40, 40A, or 40NR and related forms and schedules. You may need some of the forms and schedules
listed below:
 Wages including salaries, fringe benefits,
bonuses, commissions, fees, and tips.
 Dividends (Schedule B).
 Interest (Schedule B) on: bank deposits, bonds,
notes, federal income tax refunds, mortgages on which
you receive payments, accounts with savings and loan
associations, mutual savings banks, credit unions, etc.
 Original Issue Discount (Schedule B).
 Distributions from an Individual Retirement
Arrangement (IRA) including SEPs and DECs, if you excluded these amounts in a prior year.
 Bartering income (fair market value of goods or
services you received in return for your services).
 Business expense reimbursements you received
that are more than you spent for these expenses.
 Amounts received in place of wages from accident and health plans (including sick pay and disability
pensions) if your employer paid for the policy.
 Alimony or separate maintenance payments received from and deductible by your spouse or former
spouse.
 Life insurance proceeds from a policy you cashed
in if the proceeds are more than the premium you paid.
 Profits from businesses and professions (Federal
Schedule C or C-EZ).
 Your share of profits from partnerships and S
Corporations (Schedule E).
 Profits from farming (Federal Schedule F).
 Pensions, annuities, and endowments.
 Lump-sum distributions.
 Gains from the sale or exchange (including
barter) of real estate, securities, coins, gold, silver, gems,
or other property (Schedule D).
 Gains from the sale of your personal residence
as reported on your Federal return.
 Rents and Royalties (Schedule E).
 Your share of estate or trust income (Schedule
E).
 Prizes and awards (contests, lotteries, and gambling winnings).
 Income from sources outside the United States.
 Director’s fees.
 Fees received as an executor or administrator of
an estate.
 Embezzled or other illegal income.
 Refunds of federal income tax if deducted in a
prior year and resulted in a tax benefit.
 Payments received as a member of a military
service generally are taxable except for combat pay and
certain allowances.
 Property transferred in conjunction with performance of services.
 Jury duty pay.
 Nonqualified Withdrawal from Alabama College
Counts 529 Fund.

Examples of Income
You DO NOT Report
Do not include these amounts when deciding if you
must file a return.
 United States Retirement System benefits.
 State of Alabama Teachers’ Retirement System
benefits.

 State of Alabama Employees’ Retirement System
benefits.
 State of Alabama Judicial Retirement System
benefits.
 Military retirement pay.
 Tennessee Valley Authority Pension System
benefits.
 United States Government Retirement Fund
benefits.
 Payments from a “Defined Benefit Retirement
Plan” in accordance with IRC 414(j). (Contact your retirement plan administrator to determine if your plan
qualifies.
 Federal Railroad Retirement benefits.
 Federal Social Security benefits.
 State income tax refunds.
 Unemployment compensation.
 Welfare benefits.
 Disability retirement payments (and other benefits) paid by the Veteran’s Administration.
 Workman’s compensation benefits, insurance
damages, etc. for injury or sickness.
 Child support.
 Gifts, money, or other property you inherit or that
was willed to you.
 Dividends on veteran’s life insurance.
 Life insurance proceeds received because of a
person’s death.
 Interest on obligations of the State of Alabama or
any county, city, or municipality of Alabama.
 Interest on obligations of the United States or any
of its possessions.
 Amounts you received from insurance because
you lost the use of your home due to fire or other casualty to the extent the amounts were more than the cost
of your normal expenses while living in your home. (You
must report as income reimbursements for normal living
expenses.)
 Military allowances paid to active duty military,
National Guard, and active reserves for quarters, subsistence, uniforms, and travel.
 Subsistence allowance received by law enforcement officers and corrections officers of the State of
Alabama.
 All retirement compensation received by an eligible peace officer or a designated beneficiary from any
Alabama police retirement system.
 All retirement compensation received by an eligible fire fighter or a designated beneficiary from any Alabama firefighting agency.
 Income earned while serving as a foreign missionary after first serving 24 months as a missionary in
a foreign country.
 Compensation received from the United States
for active service as a member of the Armed Forces in
a combat zone designated by the President of the United
States.
 Death benefits received by a designated beneficiary of a peace officer or fireman killed in the line of
duty.
 An amount up to $50,000 for Tax Years 2020 and
forward received as severance, unemployment compensation or termination pay, or as income from a supplemental income plan, or both, by an employee who,
as a result of administrative downsizing, is terminated, laid-off, fired, or displaced from his or her employment, shall be exempt from state income tax. If the
exempt severance pay is included in your state
wages, contact your employer for a corrected W-2.
 Beginning January 1, 1998, all benefits received
from Alabama Prepaid Affordable College Tuition ConPage 7

tracts (PACT).
 Qualified Withdrawal from Alabama College
Counts 529 fund.
 Income received from the Department of Defense
as a result of a member of the military killed in action in
a designated combat zone.
 Any income earned by the spouse in the year of
death of a member of the Military who has been killed in
action in a designated combat zone.
 Beginning January 1, 2016, all income, interest,
dividends, gains or benefits of any kind received from
ABLE (Achieving Better Life Experience) savings
account.
 Effective with tax year 2020, insurance benefits
received by a certified firefighter as a result of a cancer
diagnosis to any extent the amounts are included in the
federal adjusted gross income of the taxpayer and are
not exempt under any other law. For more information
please see Act 2019-361.

Rounding Off to Whole Dollars
Round off cents to the nearest whole dollar on your
return and schedules. You can drop amounts under 50
cents. Increase amounts from 50 to 99 cents to the next
dollar. For example: $1.39 becomes $1.00 and $2.69 becomes $3.00.

Line 5
Wages, Salaries, Tips, Etc.
Report all W-2 information on Schedule W-2. See
Schedule W-2 instructions for more information. On column B – “Income,” enter the amount from Schedule W2, Line 18, Column I plus Column J.
The amount shown in the box headed “State Wages”
may not be the same as the amount taxable for federal
purposes. Report all wages, salaries, and tips you received even if you do not have a Form W-2.
NOTE: State of Alabama employees will find that the
amount taxable for state purposes is, in most cases,
more than the amount taxable for federal purposes due
to the fact that amounts deducted from their wages as
“Contributions to the Alabama State Retirement System”
qualify for deferral on the Federal return but do not qualify for deferral on the Alabama return.

Alabama Income Tax Withheld
Alabama tax withheld information must be reported on Schedule W-2. (See Schedule W-2 instructions for more information.)
The amount withheld is shown on the state copy of
your Form W-2. This copy should be marked “To Be
Filed With Your Alabama Income Tax Return.”
NOTE: Do not change or alter the amount of tax withheld or wages reported on your Form W-2. If any amount
is incorrect or illegible, contact your employer and request a corrected statement.
Do not include the following as Alabama income tax:





Federal income tax,
FICA tax (Social Security and Medicare),
Local, city, or occupational tax, or
Taxes paid to another state.

In Column A – “Alabama tax withheld,” enter the total
amount from Schedule W-2, Line 18, Column G.

Line 6
Interest and Dividend Income
If income from interest and dividends is more than
$1500, you cannot file Form 40A but must file Form 40.

Line 8
Standard Deduction
Use the chart on page 9 to determine your Standard
Deduction and enter the amount on page 1, line 8.

Line 9
Federal Income Tax Deduction
See instructions for page 2, Part III on page 11.
Joint Federal and Separate Alabama Returns, or
Part Year Residents. If a married couple elects to file a
joint Federal return and separate Alabama returns, or if
filing as a part year resident, the Federal income tax
must be determined by a ratio of Alabama adjusted
gross income to Federal adjusted gross income. This
calculation is required regardless of the method used in
claiming other deductions.

Line 10
Personal Exemption
Enter the personal exemption from line 1, 2, 3, or 4.
A dependent or student may take the personal exemption even if claimed as a dependent by someone else.

required to collect Alabama tax. As the consumer, you
are responsible for ensuring that sales or use tax is paid
on your purchases. When you purchase merchandise
for storage, use or consumption in Alabama and the retail seller does not collect tax on the purchase, you must
report and pay consumer use tax on the purchase price.
Usually, these purchases are made from catalogs, over
the internet, or by telephone and include items such as:
 Clothing
 Books
 Computers
 Computer Software
 Furniture
 Magazine Subscriptions
 Sporting Goods
 Jewelry
 Electronic Equipment
 CDs, DVDs, Audio & Video Cassettes
 Photographic Equipment
 Musical Equipment
 Automotive Accessories and Parts
 ATVs
 Lawn and garden equipment

Applicable State Use Tax Rates
The general use tax rate of 4% applies to all purchases of merchandise, except where a different rate of
tax is expressly provided.
The automotive use tax rate of 2% applies to purchases of automotive vehicles. Where any used vehicle
is traded-in on the purchase of a new or used vehicle, the

tax is due on the trade difference, that is, the price of the
new or used vehicle purchased less the credit for the
used vehicle taken in trade. The county licensing official
will collect the tax due on purchases of automotive vehicles that are required to be titled or registered including purchases of automobiles, trucks, trailers, mobile
homes, and motor boats. Do not include purchases of
vehicles that are titled or registered in the calculation on
the worksheet on page 9. You must report and pay the
use tax due on other purchases of automotive vehicles including ATVs, off-road motorcycles, riding
lawnmowers, self-propelled construction equipment,
and other self-propelled instruments of conveyance.
The agriculture use tax rate of 1-1/2% applies to
purchases of machinery or equipment used in connection with the production of agricultural products, livestock, or poultry on farms and the replacement parts for
such machinery or equipment. Where any used farm machinery or equipment is traded-in on the purchase of new
or used farm machinery or equipment, the tax is due on
the trade difference, that is, the price of the new or used
machinery or equipment less the credit for the used machinery or equipment taken in trade.
Local Use Tax: City and County use tax may also be
due and should be reported and paid to the appropriate
local tax authority. For information about reporting local
use tax, please see the department’s website at
www.revenue.alabama.gov.
You can use either the Alabama Use Tax Table
below or the worksheet on page 9 if you only have internet or catalog purchases that do not include automo-

Line 11
Dependent Exemption
Complete page 2, Part II, and enter the amount from
line 2 on page 1, line 11.
Use the following chart to determine the per-dependent exemption amount.
Amount on
Page 1, Line 7
0 - 50,000
50,001 - 100,000
Over 100,000

Dependent
Exemption
1,000
500
300

Line 14
Figuring Your Tax
Find the tax for the amount on line 13. Use the Tax
Tables on pages 14 through 19.

Line 15
Consumer Use Tax
Review the purchases you made during 2023. If you
purchased items for use in Alabama from out-of-state
sellers who did not charge sales or use tax, you owe
consumers use tax on the items. If you made no purchases from out-of-state sellers, enter 0 (zero) on line
15 and check the box.
Use tax is the counterpart of the sales tax. State use
tax is imposed at the same rate and on the same type of
transactions as sales tax and is due from the consumer
when the sales tax is not collected. When you purchase
merchandise from a retail store or other business establishment in Alabama, the seller is required to collect
sales tax on the purchase. When you purchase merchandise from a business located outside of Alabama,
the seller might collect use tax on the purchase. However, not all out-of-state businesses are registered and

Alabama Use Tax Table
for General Internet and Catalog Purchases
Purchases Subject to Use Tax
At least
But less than
Use Tax Due
0 ........
50 . . . . . . . .
1
50 . . . . . . . .
100 . . . . . . . .
3
100 . . . . . . . .
150 . . . . . . . .
5
150 . . . . . . . .
200 . . . . . . . .
7
200 . . . . . . . .
250 . . . . . . . .
9
250 . . . . . . . .
300 . . . . . . . . 11
300 . . . . . . . .
350 . . . . . . . . 13
350 . . . . . . . .
400 . . . . . . . . 15
400 . . . . . . . .
450 . . . . . . . . 17
450 . . . . . . . .
500 . . . . . . . . 19
500 . . . . . . . .
550 . . . . . . . . 21
550 . . . . . . . .
600 . . . . . . . . 23
600 . . . . . . . .
650 . . . . . . . . 25
650 . . . . . . . .
700 . . . . . . . . 27
700 . . . . . . . .
750 . . . . . . . . 29
750 . . . . . . . .
800 . . . . . . . . 31
800 . . . . . . . .
850 . . . . . . . . 33
850 . . . . . . . .
900 . . . . . . . . 35
900 . . . . . . . .
950 . . . . . . . . 37
950 . . . . . . . . 1,000 . . . . . . . . 39
1,000 . . . . . . . . 1,050 . . . . . . . . 41
1,050 . . . . . . . . 1,100 . . . . . . . . 43
1,100 . . . . . . . . 1,150 . . . . . . . . 45
1,150 . . . . . . . . 1,200 . . . . . . . . 47
1,200 . . . . . . . . 1,250 . . . . . . . . 49

Purchases Subject to Use Tax
At least
But less than
Use Tax Due
1,250 . . . . . . . . 1,300 . . . . . . . . 51
1,300 . . . . . . . . 1,350 . . . . . . . . 53
1,350 . . . . . . . . 1,400 . . . . . . . . 55
1,400 . . . . . . . . 1,450 . . . . . . . . 57
1,450 . . . . . . . . 1,500 . . . . . . . . 59
1,500 . . . . . . . . 1,550 . . . . . . . . 61
1,550 . . . . . . . . 1,600 . . . . . . . . 63
1,600 . . . . . . . . 1,650 . . . . . . . . 65
1,650 . . . . . . . . 1,700 . . . . . . . . 67
1,700 . . . . . . . . 1,750 . . . . . . . . 69
1,750 . . . . . . . . 1,800 . . . . . . . . 71
1,800 . . . . . . . . 1,850 . . . . . . . . 73
1,850 . . . . . . . . 1,900 . . . . . . . . 75
1,900 . . . . . . . . 1,950 . . . . . . . . 77
1,950 . . . . . . . . 2,000 . . . . . . . . 79
2,000 . . . . . . . . 2,050 . . . . . . . . 81
2,050 . . . . . . . . 2,100 . . . . . . . . 83
2,100 . . . . . . . . 2,150 . . . . . . . . 85
2,150 . . . . . . . . 2,200 . . . . . . . . 87
2,200 . . . . . . . . 2,250 . . . . . . . . 89
2.250 . . . . . . . . 2,300 . . . . . . . . 91
2,300 . . . . . . . . 2,350 . . . . . . . . 93
2,350 . . . . . . . . 2,400 . . . . . . . . 95
2,400 . . . . . . . . 2,450 . . . . . . . . 97
2,450 . . . . . . . . 2,500 . . . . . . . . 99

If purchases are over $2,499 use the Alabama Use Tax Worksheet on page 9

Page 8

Standard Deduction
Married Filing Joint
____________________________
AL Total Income
Standard
(AL Line 7)
Deduction
$8,500
$ 0 – $25,999
$8,325
$26,000 – $26,499
$8,150
$25,500 – $26,999
$7,975
$27,000 – $27,499
$7,800
$27,500 – $27,999
$7,625
$28,000 – $28,499
$7,450
$28,500 – $28,999
$7,275
$29,000 – $29,499
$7,100
$29,500 – $29,999
$6,925
$30,000 – $30,499
$6,750
$30,500 – $30,999
$6,575
$31,000 – $31,499
$6,400
$31,500 – $31,999
$6,225
$32,000 – $32,499
$6,050
$32,500 – $32,999
$5,875
$33,000 – $33,499
$5,700
$33,500 – $33,999
$5,525
$34,000 – $34,499
$5,350
$34,500 – $34,999
$5,175
$35,000 – $35,499
$5,000
$35,500 and above

Married Filing Separate
____________________________
AL Total Income
Standard
(AL Line 7)
Deduction
$4,250
$ 0 – $12,999
$4,162
$13,000 – $13,249
$4,074
$13,250 – $13,499
$3,986
$13,500 – $13,749
$3,898
$13,750 – $13,999
$3,810
$14,000 – $14,249
$3,722
$14,250 – $14,499
$3,634
$14,500 – $14,749
$3,546
$14,750 – $14,999
$3,458
$15,000 – $15,249
$3,370
$15,250 – $15,499
$3,282
$15,500 – $15,749
$3,194
$15,750 – $15,999
$3,106
$16,000 – $16,249
$3,018
$16,250 – $16,499
$2,930
$16,500 – $16,749
$2,842
$16,750 – $16,999
$2,754
$17,000 – $17,249
$2,666
$17,250 – $17,499
$2,578
$17,500 – $17,749
$2,500
$17,750 and above

Head of Family
____________________________
AL Total Income
Standard
(AL Line 7)
Deduction
$5,200
$ 0 – $25,999
$5,065
$26,000 – $26,499
$4,930
$26,500 – $26,999
$4,795
$27,000 – $27,499
$4,660
$27,500 – $27,999
$4,525
$28,000 – $28,499
$4,390
$28,500 – $28,999
$4,255
$29,000 – $29,499
$4,120
$29,500 – $29,999
$3,985
$30,000 – $30,499
$3,850
$30,500 – $30,999
$3,715
$31,000 – $31,499
$3,580
$31,500 – $31,999
$3,445
$32,000 – $32,499
$3,310
$32,500 – $32,999
$3,175
$33,000 – $33,499
$3,040
$33,500 – $33,999
$2,905
$34,000 – $34,499
$2,770
$34,500 – $34,999
$2,635
$35,000 – $35,499
$2,500
$35,500 and above

Single
____________________________
AL Total Income
Standard
(AL Line 7)
Deduction
$3,000
$ 0 – $25,999
$2,975
$26,000 – $26,499
$2,950
$26,500 – $26,999
$2,925
$27,000 – $27,499
$2,900
$27,500 – $27,999
$2,875
$28,000 – $28,499
$2,850
$28,500 – $28,999
$2,825
$29,000 – $29,499
$2,800
$29,500 – $29,999
$2,775
$30,000 – $30,499
$2,750
$30,500 – $30,999
$2,725
$31,000 – $31,499
$2,700
$31,500 – $31,999
$2,675
$32,000 – $32,499
$2,650
$32,500 – $32,999
$2,625
$33,000 – $33,499
$2,600
$33,500 – $33,999
$2,575
$34,000 – $34,499
$2,550
$34,500 – $34,999
$2,525
$35,000 – $35,499
$2,500
$35,500 and above

Alabama Use Tax Worksheet

Column A

Column B

Column C

Report 2023 purchases for use in Alabama from out-of-state sellers
on which tax was not collected by the seller.

Total Purchase Price

Tax Rate

Tax Due –
(Multiply Col. A by Col. B)

1. All purchases EXCEPT automotive vehicles and farm machinery . . . . . . . . . . . . . .
2. ATVs, off-road motorcycles, riding lawnmowers, self propelled construction
equipment and other automotive vehicles that are not titled or registered by
the county licensing official . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.04

3. Farm machinery or equipment and replacement parts thereof . . . . . . . . . . . . . . . . . .

.015

.02

4. TOTAL TAX DUE (Total of Column C). Carry this amount to Form 40A line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page 9

tive vehicles, farm machinery, or farm machinery replacement parts; otherwise, use the worksheet on page
9 to compute Alabama Use Tax. For more information
regarding consumers use tax, call (334) 242-1490.

Line 16
Alabama Election Campaign Fund
If you wish to make a voluntary contribution to Alabama’s Democratic Party or Republican Party, indicate
the amount and party by checking the proper box(es) on
lines 16a or 16b.
Each individual may contribute $1 to either party. If
a joint return is filed, each spouse may contribute $1 to
either party. If you make a voluntary contribution to this
fund, it WILL INCREASE your tax.
The total amount entered on line 16a or 16b cannot
exceed $2 for a married couple filing a joint return, or $1
for all other filers.

Line 19
Automatic Extension Payment
Enter on this line any payment you made on your
Alabama automatic extension (Form 40V).

Line 20
Previous Payments
This line is for amended returns only. Enter the
amount of your previous payment made with your original return and/or billing notices and amended return(s).

Line 22
Previous Refund
This line is for amended returns only. Enter the
amount of your previous refund from your original return
and amended return(s).

Line 24
Amount You Owe
If the amount on line 17 is larger than the amount on
line 23, subtract line 23 from line 17 and enter the difference on line 24 — this is the amount you owe the
State of Alabama. It must be paid using Form 40V.
Pay the full amount by check or money order
payable to the “Alabama Department of Revenue.” On
your payment, write your social security number, daytime phone number, and “2023 Form 40A,” and remit
your payment with Form 40V.

Credit Card: For other payment options, please visit
our website for more information.
How do I pay by ACH Debit? You may pay by ACH
Debit by going to www.myalabamataxes.alabama.gov.
Do not use Form 40V when paying by ACH Debit. You
will need to have your bank routing number and checking account number to use this service. No fee is
charged for this service.
If payment for the full amount of tax due is not paid
by the due date of the return, you will be charged interest and will be subject to penalties. See Penalties and
Interest on page 12. More importantly, if you submit your
return without payment, a final assessment may be entered by the Department. A final assessment which is
not appealed is as conclusive as a judgment of a circuit

court. The Department may then proceed with collection
by issuance of legal processes including recording of tax
liens, garnishment of wages or bank accounts, levy,
or a writ of seizure directed to the county sheriff as provided by Sections 40-1-2, 40-2-11(16), and 40-29-23,
Code of Alabama 1975.
NOTE: Make sure you complete all fields on Form 40V
so that your payment can be properly credited.

Line 25
Overpayment
If the amount on line 23 is more than the amount on
line 17, subtract line 17 from line 23 and enter the difference on line 25 — this is the amount you overpaid.

Line 26
Donation of Refunds
Enter amount from page 2, Part IV, line 2.
NOTE: Amounts contributed to these funds WILL REDUCE your refund. Also, once an election is made to
contribute to these funds, that election is irrevocable and
cannot later be refunded. If your return is corrected by
the Department, the amount contributed cannot be used
to pay any additional tax due.

Line 27
Refunded to You
Subtract the amount on line 26 from the amount on
line 25. You should receive a refund for the overpayment. See When Should I Expect My Refund? on page
4 of this booklet for more information about your refund.

Sign Your Return
Form 40A is not complete until you sign it. Please
sign in black ink only. Your spouse must also sign if it
is a joint return. Original signatures are required or the
return will not be accepted. If you are filing a joint return
with your deceased spouse, see Death of Taxpayer on
page 12.
Did You Have Someone Else Prepare Your Return? If you fill in your own return, the Paid Preparer’s
Use Only area should remain blank. Someone who prepares your return but does not charge you should not
sign.
Generally, anyone who is paid to prepare your tax
return must sign your return and fill in the other blanks in
the Paid Preparer’s Use Only area of your return.
If you have questions about whether a preparer is
required to sign a return, please contact an Alabama
Taxpayer Service Center.
The preparer required to sign your return MUST:
 Sign, by hand, in the space provided for the preparer’s signature. (Signature stamps or labels are not
acceptable.)
 Give you a copy of your return in addition to the
copy to be filed with the Alabama Department of
Revenue.
BEFORE signing and mailing your return, you
should review it to make sure the preparer has entered
the correct name(s), address, and social security number(s) in the spaces provided and reported all of your income. REMEMBER, you are responsible for the
information on your return even if you pay someone else
to prepare it.
Please enter your daytime phone number. This will
enable us to contact you and help speed your refund
Page 10

along if there are any problems with processing your
return.

Where To File Form 40A
Mail your return to one of the addresses below:
If you are receiving a refund (Form 40A, line 27), mail
your return to:
Alabama Department of Revenue
P.O. Box 154
Montgomery, AL 36135-0001
If you are making a payment (Form 40A, line 24),
mail your return, Form 40V and payment to:
Alabama Department of Revenue
P.O. Box 2401
Montgomery, AL 36140-0001
If you are not receiving a refund or making a payment, mail your return to:
Alabama Department of Revenue
P.O. Box 327469
Montgomery, AL 36132-7469
Current year Form 40A returns should be mailed to
one of the above addresses. Prior year Form 40A returns, amended returns, and any correspondence pertaining to a previously filed return should be mailed to:
Alabama Department of Revenue
Income Tax Administration Division
P.O. Box 327464
Montgomery, AL 36132-7464

Page 2, Part I
General Information
Part I (General Information) must be completed by
all taxpayers. Please follow the line-by-line instructions
on Form 40A to complete this section.

Page 2, Part II
Dependents
A “dependent” as defined under Alabama law is an
individual other than the taxpayer and his or her
spouse who received over 50% of his or her support
from the taxpayer during the tax year and also has one
of the following relationships with the taxpayer:
Son
Daughter
Stepson
Stepdaughter
Legally adopted child
Parent
Grandparent
Grandchild
Brother
Sister
Stepbrother
Stepsister
Stepmother

Stepfather
Mother-in-law
Father-in-law
Brother-in-law
Sister-in-law
Son-in-law
Daughter-in-law
If related by blood:
Uncle
Aunt
Nephew
Niece

NOTE: You cannot claim a foster child, friend, cousin,
or your spouse as a dependent under Alabama law.
Birth or Death of Dependent. You can take an exemption for a dependent who was born or who died dur-

ing 2023 if he or she met the qualifications for a dependent while alive.
Support. You must have provided over 50% of the
dependent’s support in 2023. If you file a joint return, the
support can be from you or your spouse. You cannot
claim credit for a dependent if you gave less than 50%
of the support under Alabama law as you can under federal law, in certain conditions.
In figuring total support, you must include money the
dependent used for his or her own support even if this
money was not taxable (for example: gifts, savings, welfare benefits). If your child was a student, do not include
amounts he or she received as scholarships.
Support includes items such as food, a place to live,
clothes, medical and dental care, recreation, and education. In figuring support, use the actual cost of these
items. However, the cost of a place to live is figured at its
fair rental value.
In figuring support, do not include items such as income taxes, social security taxes, premiums for life insurance, or funeral expenses.
NOTE: If you used Federal Form 8332 (Release/Revocation to claim exemption for child by custodial parent),
or if you are NOT claiming a dependent as a dependent
for this tax year – DO NOT fill out (4) Did you provide
more than one-half dependent’s support.

Line 1a
Dependents
Column (1) Enter first and last name of each
dependent.
Column (2) Enter social security number for each dependent regardless of the dependent’s age.
Column (3) Enter your dependent’s relationship to
you.
Column (4) Enter yes or no to the question.

Line 1b
Enter total number of dependents claimed.

Line 2
Complete Part II and enter the amount from line 2 on
page 1, line 11.

Page 2, Part III
Federal Tax Deduction
Use your 2023 federal income tax return and the
worksheet on page 20 to determine your federal income
tax deduction.
PLEASE NOTE: The Federal line references were
correct at the time these forms and instructions were
printed. However, there may have been changes to Federal forms after our print deadline and the line numbers
referenced for our forms may have changed. If you have
questions as to the correct line number on the Federal
return, please feel free to call one of our taxpayer service centers listed on page 3.

Page 2, Part IV
Donation Check-offs
You may elect to donate all or part of your overpayment as shown on line 25 to one or more of the funds as

provided by the Alabama Legislature. The amounts entered on these lines will be paid to the programs you indicate. Any amount you contribute may be claimed if you
itemize deductions when you file your 2024 Alabama Income Tax Return. (Caution: When reporting your refund
on your 2024 Federal return, you should report the
amount of overpayment shown on line 25 before your
donation.)

Line 1a
Alabama Senior Services Trust Fund
This fund will assist in the support of programs for
the aging in Alabama. If you wish to make a contribution
to this program, enter a dollar amount.

Line 1b
Alabama Arts Development Fund
This fund provides for grants to tax exempt organizations or associations to encourage development of
quality arts activities or cultural facilities in local areas. If
you wish to make a contribution to this program, enter a
dollar amount.

Line 1c
Alabama Nongame Wildlife Fund
This is a program under the jurisdiction of the Game
and Fish Division of the Department of Conservation
which provides management of such nongame wildlife.
If you wish to make a contribution to this program, enter
a dollar amount.

Line 1d
Child Abuse Trust Fund
This fund encourages the direct provision of services
to prevent child abuse and neglect. If you wish to make
a contribution to this program, enter a dollar amount.

Line 1e

a contribution to this fund, enter a dollar amount.

Line 1h
Foster Care Trust Fund
The Foster Care Trust Fund provides educational,
athletic, artistic, and special occasion opportunities for
Alabama’s foster children. If you wish to make a contribution to this fund, enter a dollar amount.

Line 1i
Mental Health
This is a non-profit organization dedicated to the
eradication of mental illness and to the improvement of
the quality of life of those whose lives are affected by
these diseases. Your donation to this fund will help provide unconditional support to persons experiencing mental pain and those struggling toward recovery. If you wish
to make a contribution to this fund, enter a dollar amount.

Line 1j
Alabama Firefighters Annuity and
Benefit Fund
Your donations to this fund will be used to provide
retirement, disability and death benefits to firefighters
who are registered with this fund. If you wish to make a
contribution to this fund, enter a dollar amount.

Line 1k
Alabama Breast and
Cervical Cancer Research Program
The University of Alabama at Birmingham’s Comprehensive Cancer Center is a nationally funded leader
in breast and cervical research providing cutting edge
clinical care to the people of Alabama. Your donation to
this fund will help in the fight against breast and cervical
cancer. If you wish to make a contribution to this fund,
enter a dollar amount.

Alabama Veterans’ Program

Line 1l

This fund provides supportive assistance through
nursing and related health care for Alabama ailing and
aged veterans of the armed forces who have need of
special nursing and related health care services. If you
wish to make a contribution to this program, enter a dollar amount.

Donations to this fund will be used to provide services and aid to victims of crime. If you wish to make a
contribution to this fund, enter a dollar amount.

Victims of Violence Assistance

Line 1m

Line 1f

Alabama Military Support Foundation

Alabama State Historic
Preservation Fund

This fund was established to promote better relations
between employers and National Guard/Reserve
members. If you wish to make a contribution to this fund,
enter a dollar amount.

Your donations to this fund will be used by the Alabama Historical Commission to pay the costs of the
maintenance, acquisitions, preservation and operations
of its acquisitions. If you wish to make a contribution to
this fund enter a dollar amount.

Line 1g
Alabama State Veterans Cemetery at
Spanish Fort Foundation, Inc
Your donations to this fund will be used to promote
the mission of the cemetery and support other veteran
organizations, activities and programs which promote
the welfare of veterans and commemorate the honorable service provided by veterans. If you wish to make
Page 11

Line 1n
Alabama Veterinary Medical
Foundation Spay/Neuter Program
This fund provides assistance to low income residents to spay or neuter their dog or cat. If you wish to
make a contribution to this program, enter a dollar
amount.

Line 1o
Cancer Research Institute
This fund was established to improve cancer survival
rates for patients through research aimed at increasing
prevention and treatment. If you wish to make a contribution to this program, enter a dollar amount.

Line 1p
Alabama Association of
Rescue Squads
This fund provides training to member rescue squads
and inspections to insure that member’s equipment and
buildings meet standards. If you wish to make a contribution to this program, enter a dollar amount.

Line 1q
USS Alabama Battleship Commission
Donations to this fund will help in the preservation of
the USS Alabama Battleship Memorial Park for future
generations and to memorialize our Veterans of all
branches of the US Armed Services. If you wish to make
a contribution to this program, enter a dollar amount.

Line 1r
Children First Trust Fund
Your donations to this fund will go toward ensuring
that all of Alabama’s children are prepared for school
success and lifelong learning through voluntary, diverse,
high-quality early childhood programs.

SECTION

4

General
Information

This section contains general information about
items such as amending your tax return, how long to
keep records, and filing a return for a deceased person.

Direct Deposit Information
We are currently working to implement direct deposit
for all paper returns. However, for the 2023 tax year this
option will be available only for Alabama Form 40 Individual Returns. In order to receive a direct deposit refund, your paper return must be prepared using tax
preparation software that utilizes 2-D Bar Code
technology.

Penalties and Interest
Interest. Interest is charged on taxes not paid by
their due date even if an extension of time is granted. If
your return is not filed by the due date and you owe additional tax, you should add interest from the due date of
the federal return to date of payment. Submit payment of
the tax and interest with your return. The interest rate is
the same as currently prescribed by the Internal Revenue Service. Any of the Alabama Taxpayer Service
Centers listed on page 3 of this booklet can give you the
current rate of interest at the time your return is filed.
Failure To Timely File a Return. Alabama law provides a penalty of 10% of the tax due or $50.00,
whichever is greater, if the return is filed late. This

penalty does not apply to a tax return filed indicating no
tax due or a refund.
Failure To Timely Pay Tax. The penalty for not paying the tax when due is 1% of the unpaid amount for
each month or fraction of a month that the tax remains
unpaid. The maximum penalty is 25%.
NOTE: If you include interest and/or either of these
penalties with your payment, identify and enter these
amounts on the bottom margin of Form 40A, page 1. Do
not include interest or penalty amounts in “Amount You
Owe” on line 24.
Other Penalties. There are also penalties for filing a
frivolous return, underpayment due to negligence, underpayment due to fraud, substantial understatement of
estimated tax, and failure to file estimated tax.
Any person failing to file a return as required by Alabama law or filing a willfully false or fraudulent return will
be assessed by the Alabama Department of Revenue
on the basis of the best information obtainable by the
Department with respect to the income of the taxpayer.
Criminal Liability. Section 40-29-112, Code of Alabama 1975, as amended, provides for a more severe
penalty for not filing tax returns. Any person required to
file a return who willfully fails to file the return is guilty of
a misdemeanor and, if convicted, will be fined not more
than $25,000 or imprisoned not more than 1 year, or
both. Section 40-29-110 provides that any person who
willfully attempts to evade any tax or the payment of any
tax is guilty of a felony and, if convicted, will be fined not
more than $100,000 or imprisoned for not more than 5
years, or both. These penalties are in addition to any
other penalties provided