Alabama – Part-Year Income Allocation
If you were a part-year resident of Alabama, you need to allocate your AL income correctly to avoid being taxed twice on income earned as a part-year resident of another state.
To allocate your part-year Alabama source income:
- From within your TaxACT return (Online or Desktop) click on the State Q&A tab and then click Alabama right below the blue tabs at the top of the screen
- Select Continue with Step-by-Step
- Verify that Part-year Resident Only (Form 40) is selected and click Continue
- Enter your residency dates and click Continue
- Click Yes if you need to review your basic information, otherwise click No
- On the screen titled Alabama – Wage Income click Review to review the AL wage worksheet and allocate the AL resident wages correctly.
- Review the allocation of other income types as AL resident income.