Outline
The Alabama 40 form is a crucial document for residents and part-year residents filing their individual income tax returns for the year 2020. It captures essential information such as the taxpayer's personal details, including social security numbers and filing status. The form allows individuals to report various sources of income, including wages, interest, dividends, and other earnings. Taxpayers can also indicate adjustments to their income, claim deductions, and calculate their taxable income. Furthermore, the Alabama 40 form provides sections for reporting tax liabilities, payments, and potential refunds. It includes options for contributions to political parties and other charitable donations. Understanding the structure and requirements of this form is vital for ensuring compliance and maximizing potential tax benefits.
Sample - Alabama 40 Form
*21000140*
1 •
$1,500 Single 3 •
$1,500 Married filing separate. Complete Spouse SSN •
2 •
$3,000 Married filing joint 4 •
$3,000 Head of Family (with qualifying person). Complete Schedule HOF.
5a Alabama Income Tax Withheld (from Schedule W-2, line 18, column G)...........................
5b
Wages, salaries, tips, etc. (from Schedule W-2, line 18, column I plus J):...............................
6 Interest and dividend income (also attach Schedule B if over $1,500) ..........................................................
7 Other income (from page 2, Part I, line 9)...................................................................................
8 Total income. Add amounts in the income column for line 5b through line 7 ....................................................
9 Total adjustments to income (from page 2, Part II, line 16) ....................................................................
10 Adjusted gross income. Subtract line 9 from line 8 ........................................................................
11 Check box a, if you itemize deductions, and enter amount from Schedule A, line 27.
Check box b, if you do not itemize deductions, and enter standard deduction (see instructions)
• a Itemized Deductions • b Standard Deduction ..........................
12 Federal tax deduction (see instructions).......................................................
DO NOT ENTER THE FEDERAL TAX WITHHELD FROM YOUR FORM W-2(S)
13 Personal exemption (from line 1, 2, 3, or 4)....................................................
14 Dependent exemption (from page 2, Part III, line 2).............................................
15 Total deductions. Add lines 11, 12, 13, and 14 ............................................................................
16 Taxable income. Subtract line 15 from line 10 .............................................................................
17 Income Tax due. Enter amount from tax table or check if from •
Form NOL-85A ...........................................
18 Net tax due Alabama. Check box if computing tax using Schedule OC • , otherwise enter amount from line 17 ................
19 Additional taxes (from Schedule ATP, Part I, Line 3).........................................................................
20 Alabama Election Campaign Fund. You may make a voluntary contribution to the following:
a Alabama Democratic Party
$1
$2
none....................................................................
b Alabama Republican Party
$1
$2
none....................................................................
21 Total tax liability and voluntary contribution. Add lines 18, 19, 20a, and 20b.................................................
22 Alabama income tax withheld (from column A, line 5a) ........................................
23 2021 estimated tax payments/Automatic Extension Payment ....................................
24 Amended Returns Only — Previous payments (see instructions) .................................
25 Refundable Credits. Enter the amount from Schedule OC,Section F, line F4......................
26 Payments from Schedule CP, Section B, Line 1 ...............................................
27 Total payments. Add lines 22, 23, 24, 25 and 26 ...........................................................................
28 Amended Returns Only – Previous refund (see instructions)..................................................................
29 Adjusted Total Payments. Subtract line 28 from line 27 ....................................................................
30 If line 21 is larger than line 29, subtract line 29 from line 21, and enter AMOUNT YOU OWE and add line 31.
Place payment, along with Form 40V, loose in the mailing envelope. (FORM 40V MUST ACCOMPANY PAYMENT.)
31 Penalties (from Schedule ATP, Part II, line 3) (see instructions) ..................................
32 If line 29 is larger than line 21, subtract line 21 from line 29, and enter amount OVERPAID .........................
33 Amount of line 32 to be applied to your 2022 estimated tax .....................................
34 Total Donation Check-offs from Schedule DC, line 2 ...........................................
35 REFUNDED TO YOU. (CAUTION: You must sign this return on the reverse side.)
If line 32 is greater than zero, subtract lines 31, 33 and 34 from line 32 ..........................................
22
23
24
25
26
31
33
34
CHECK BOX IF AMENDED RETURN •
Alabama Individual Income Tax Return
RESIDENTS & PART-YEAR RESIDENTS
FORM
40 2021
Your first name Initial Last name
• • •
Spouse’s first name Initial Last name
• • •
Present home address (number and street or P.O. Box number)
•
City, town or post office State ZIP code
• • •
Check if address
Foreign Country
•
is outside U.S.
For the year Jan. 1 - Dec. 31, 2021, or other tax year: Beginning: Ending:
•
Box a or b MUST be checked
30
32
35
Donations
REFUND
5b
6
7
8
9
10
15
16
17
18
19
20a
20b
21
27
28
29
Filing Status/
Exemptions
Income
and
Adjustments
Tax
Staple Form(s) W-2,
W-2G, and/or 1099
here. Attach Schedule
W-2 to return.
5a
Payments
AMOUNT
YOU OWE
OVERPAID
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12
13
14
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ADOR
B – IncomeA – Alabama tax withheld
Your social security number
•
•
Check if primary is deceased
Primary’s deceased date (mm/dd/yy)
•
Spouse’s social security number
•
•
Check if spouse is deceased
Spouse’s deceased date (mm/dd/yy)
•
Deductions
If claiming a deduc-
tion on line 12, you
must attach page
1,2 and Schedule 1
of your Federal
Return, if applica-
ble.
ADOR
*21000240*
•
•
•
PART I
PART II
PART IV
PART III
00
00
00
00
1 Residency Check only one box •
Full Year •
Part Year From 2021 through 2021.
2 Did you file an Alabama income tax return for the year 2020? •
Yes •
No If no, state reason
3 Give name and address of present employer(s). Yours
Your Spouse’s
4 Enter the Federal Adjusted Gross Income •$ and Federal Taxable Income •$ as reported on your 2021 Federal
Individual Income Tax Return.
5 Do you have income which is reported on your Federal return, but not reported on your Alabama return (other than your state tax refund)? •
Yes •
No
If yes, enter source(s) and amount(s) below: (other than state income tax refund)
Source • Amount
Source • Amount
1
2
3
4b
5b
6
7
8
9
1a
1b
2
3
4
5
6
7
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9
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12
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14
15
16
1
2
1 Alimony received ..........................................................................................................
2 Business income or (loss) (attach Federal Schedule C or C-EZ) (see instructions) .................................................
3 Gain or (loss) from sale of Real Estate, Stocks, Bonds, etc. (attach Schedule D)...................................................
4a Total IRA distributions 4a 4b Taxable amount (see instructions) ........................
5a Total pensions and annuities 5a 5b Taxable amount (see instructions) ........................
6 Rents, royalties, partnerships, estates, trusts, etc. (attach Schedule E) ...........................................................
7 Farm income or (loss) (attach Federal Schedule F) ............................................................................
8 Other income (state nature and source — see instructions)
9 Total other income. Add lines 1 through 8. Enter here and also on page 1, line 7 .................................................
1a Your IRA deduction........................................................................................................
b Spouse’s IRA deduction....................................................................................................
2 Payments to a Keogh retirement plan and self-employment SEP deduction .......................................................
3 Penalty on early withdrawal of savings .......................................................................................
4 Alimony paid. Recipient’s last name Social security no.
•
5 Adoption expenses ........................................................................................................
6 Moving Expenses (Attach Federal Form 3903) to City State ZIP
7 Self-employed health insurance deduction ....................................................................................
8 Payments to Alabama College Counts 529 Fund or Alabama PACT Program .....................................................
9 Health insurance deduction for small employer employee (see instructions) .......................................................
10 Costs to retrofit or upgrade home to resist wind or flood damage ................................................................
11 Deposits to a catastrophe savings account ...................................................................................
12 Contributions to a health savings account ....................................................................................
13 Deposits to an Alabama First-Time and Second Chance Home Buyer Savings Account (see instructions) .............................
14 Firefighter’s Insurance Premiums............................................................................................
15 Contributions to an Achieving a Better Life Experience (ABLE) savings account ...................................................
16 Total adjustments. Add lines 1 through 15. Enter here and also on page 1, line 9 ..................................................
1 Total number of dependents from Schedule DS, line 1b ........................................................................
2 Amount allowed. (Multiply total number of dependents claimed on line 1 by the amount on the dependent chart
in the instructions.) Enter amount here and on page 1, line 14 ..................................................................
Form 40 (2021)
Page 2
Other
Income
(See
instructions)
Adjustments
to Income
(See
instructions)
General
Information
All Taxpayers
Must Complete
This Section.
(See
instructions)
WHERE TO
FILE
FORM 40
If you are receiving a refund, Form 40, line 35, mail your return to: Alabama Department of Revenue, P.O. Box 154, Montgomery, AL 36135-0001
If you are making a payment, Form 40, line 30, mail your return 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
Mail only your 2021 Form 40 to one of the above addresses. Prior year returns, amended returns, and all other correspondence should be mailed to
Alabama Department of Revenue, P.O. Box 327464, Montgomery, AL 36132-7464.
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Your signature Date Daytime telephone number Your occupation
( )
Spouse’s signature (if joint return, BOTH must sign) Date Daytime telephone number Spouse’s occupation
( )
Date Preparer’s SSN or PTIN
Daytime telephone no.
( )
Sign Here
In Black Ink
Keep a copy
of this return
for your records.
Paid
Preparer’s
Use Only
•
I authorize a representative of the Department of Revenue to discuss my return and attachments with my preparer.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are
true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Preparer’s
signature
Check if
self-employed
Firm’s name (or yours
if self-employed)
and address
E.I. No.
ZIP Code
Drivers
License Info
DOB Iss date Exp date
(mm/dd/yyyy)
•
Your state
•
DL#
•
(mm/dd/yyyy)
•
(mm/dd/yyyy)
•
DOB Iss date Exp date
(mm/dd/yyyy)
•
Spouse state
•
DL#
•
(mm/dd/yyyy)
•
(mm/dd/yyyy)
•
Form Information
| Fact Name | Details |
|---|---|
| Form Title | Alabama Individual Income Tax Return for Residents & Part-Year Residents |
| Tax Year | This form is for the tax year January 1 - December 31, 2020. |
| Filing Status Options | Options include Single, Married Filing Joint, Married Filing Separate, and Head of Family. |
| Exemptions | Exemptions can be claimed for the taxpayer, spouse, and dependents. |
| Income Reporting | Income must be reported from various sources including wages, interest, and dividends. |
| Deductions | Taxpayers can choose between itemized deductions or a standard deduction. |
| Adjustments to Income | Adjustments can include IRA contributions, alimony paid, and health savings account contributions. |
| Tax Calculation | Tax due is calculated based on taxable income using the Alabama tax tables. |
| Refund or Amount Owed | Taxpayers will either receive a refund or owe additional taxes, depending on total payments made. |
| Governing Law | This form is governed by the Alabama Code Title 40, Chapter 18, Article 2. |
Detailed Guide for Filling Out Alabama 40
Filling out the Alabama 40 form requires careful attention to detail to ensure accuracy in reporting your income and calculating your tax liability. After completing the form, you will need to submit it to the Alabama Department of Revenue along with any required attachments, such as W-2 forms. Ensure that you keep a copy of your completed return for your records.
- Enter the tax year at the top of the form, indicating the beginning and ending dates.
- Fill in your Social Security number, first name, middle initial, and last name.
- If applicable, check the box indicating if the primary taxpayer is deceased and provide the date of death.
- Complete your spouse's information, including their name and Social Security number, if filing jointly.
- Provide your current home address, including city, state, and ZIP code. Check the box if the address is outside the U.S.
- Indicate your filing status by checking the appropriate box for single, married filing separately, married filing jointly, or head of family.
- Report Alabama income tax withheld from your W-2 forms in the designated section.
- List your wages, salaries, tips, and other income in the corresponding lines.
- Add any interest and dividend income, and report any other income as necessary.
- Calculate your total income by adding all reported income amounts.
- List any adjustments to income as required.
- Determine your adjusted gross income by subtracting total adjustments from total income.
- Choose whether to itemize deductions or take the standard deduction and enter the appropriate amount.
- Calculate your total deductions by adding all relevant deductions.
- Subtract total deductions from adjusted gross income to find your taxable income.
- Calculate the income tax due based on the tax table or by other means as specified.
- Report any consumer use tax due and check the box if no use tax is due.
- Make any voluntary contributions to the Alabama Election Campaign Fund, if desired.
- Add all tax liabilities and contributions to find your total tax liability.
- List any Alabama income tax withheld and any estimated tax payments made.
- Calculate total payments made by adding all relevant payment amounts.
- Determine if you owe any amount or if you are due a refund based on the calculations.
- Sign and date the form, ensuring both spouses sign if filing jointly.
- Mail the completed form to the appropriate address based on whether you are expecting a refund or making a payment.
Obtain Answers on Alabama 40
-
What is the Alabama 40 form?
The Alabama 40 form is the state’s individual income tax return for residents and part-year residents. It is used to report income, calculate tax liability, and determine any refunds or amounts owed for the tax year. This form is specifically for the year ending December 31, 2020, but can also be used for other tax years as applicable.
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Who needs to file the Alabama 40 form?
Any individual who is a resident or part-year resident of Alabama and has income that needs to be reported must file this form. This includes those who earn wages, salaries, tips, or other forms of income. If you are unsure whether you need to file, it is best to consult with a tax professional.
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What information is required to complete the Alabama 40 form?
To complete the Alabama 40 form, you will need:
- Your Social Security number.
- Your name and address.
- Filing status (single, married filing jointly, etc.).
- Income details, including wages, interest, dividends, and any other income sources.
- Adjustments to income, deductions, and any exemptions you are claiming.
- Information about any taxes withheld and payments made.
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How do I submit the Alabama 40 form?
You can submit the Alabama 40 form by mailing it to the appropriate address based on whether you are expecting a refund or owe money. If you are due a refund, send it to the Alabama Department of Revenue, P.O. Box 154, Montgomery, AL 36135-0001. If you owe taxes, mail it to P.O. Box 2401, Montgomery, AL 36140-0001. Make sure to keep a copy of your completed form for your records.
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What should I do if I need to amend my Alabama 40 form?
If you need to amend your Alabama 40 form, check the box indicating it is an amended return. You will also need to provide the corrected information on the form. Be sure to attach any relevant schedules or documents that support the changes. Once completed, submit the amended return to the appropriate address as mentioned above.
Common mistakes
Filling out the Alabama 40 form can be a daunting task, and many individuals make common mistakes that can lead to delays or issues with their tax returns. One frequent error is neglecting to check the appropriate filing status. The form provides several options, such as "Single," "Married filing jointly," and "Head of Family." If you fail to select the correct status, it may affect your tax calculations and potential deductions.
Another common mistake is overlooking the requirement to report all income sources. Some people may forget to include income from side jobs, freelance work, or other sources not listed on their W-2 forms. This oversight can lead to discrepancies and potential penalties from the Alabama Department of Revenue.
Many taxpayers also miscalculate their adjusted gross income (AGI). This figure is crucial as it affects various deductions and credits. Ensure that you carefully add and subtract the amounts from the appropriate lines, as errors in this calculation can lead to an incorrect tax liability.
Failing to sign the return is another mistake that can be easily overlooked. Both you and your spouse must sign the form if filing jointly. Without signatures, the return is considered incomplete and may not be processed.
Some individuals also forget to attach necessary schedules or documents. For instance, if you have certain types of income or are claiming specific deductions, you may need to provide additional forms. Not including these can lead to delays or denials of claims.
Another area of confusion is the section regarding exemptions. Taxpayers sometimes misinterpret how many exemptions they can claim, particularly for dependents. This can lead to either over-claiming or under-claiming, which ultimately affects your tax refund or liability.
Moreover, many people mistakenly enter their federal tax withheld amounts on the wrong line. The Alabama 40 form has specific instructions regarding where to report this information. Misplacing these figures can result in incorrect calculations of what you owe or what you will receive as a refund.
In addition, taxpayers often fail to check for any amendments that may apply to their returns. If you are submitting an amended return, it’s crucial to check the appropriate box on the form. Not doing so can lead to confusion and delays in processing.
Lastly, neglecting to keep a copy of your completed return can be a significant oversight. Having a record of what you submitted can be invaluable if questions arise or if you need to reference it in the future. Always retain a copy for your records.
Documents used along the form
The Alabama 40 form is an essential document for filing individual income tax returns in Alabama. Along with this form, several other documents may be required to ensure a complete and accurate submission. Below is a list of commonly used forms and documents that accompany the Alabama 40 form.
- Schedule A: This form is used for itemizing deductions. Taxpayers who choose not to take the standard deduction must complete this schedule to report eligible expenses such as medical costs, mortgage interest, and charitable contributions.
- Schedule B: Taxpayers with interest or dividend income over $1,500 must attach this schedule. It provides details about the sources and amounts of that income, ensuring proper reporting on the Alabama 40 form.
- Schedule OC: This form is for claiming refundable credits. Taxpayers can use it to report credits for various purposes, such as low-income tax credits, which may reduce their overall tax liability.
- Form W-2: Employers provide this form to report annual wages and the amount of taxes withheld from an employee's paycheck. It is crucial for accurately calculating income and tax due on the Alabama 40 form.
- Form 40V: This payment voucher is used when submitting a payment along with the Alabama 40 form. Taxpayers must include this form if they owe money to ensure proper processing of their payment.
Using these forms alongside the Alabama 40 will help streamline the filing process and ensure compliance with state tax regulations. Make sure to gather all necessary documentation before starting your tax preparation to avoid any delays or issues.
Similar forms
Form 1040 - This is the standard individual income tax return used by U.S. taxpayers. Like the Alabama 40 form, it gathers personal information, income details, and deductions to calculate tax liability.
Form 1040A - This simplified version of the 1040 form allows for a quicker filing process for individuals with straightforward tax situations. Both forms require similar personal and income information.
Form 1040EZ - Designed for taxpayers with simple tax situations, the 1040EZ form is shorter and easier to fill out, sharing the same basic structure of income reporting and tax calculation as the Alabama 40.
Form 4868 - This application for an automatic extension of time to file is similar in that it allows taxpayers additional time to complete their returns, while still requiring basic personal information.
Form W-2 - Issued by employers, this form reports wages paid and taxes withheld. It is essential for completing both the Alabama 40 and federal tax returns, as it provides necessary income details.
Form 1099 - This form reports various types of income other than wages, salaries, and tips. Like the Alabama 40, it requires the reporting of income sources and amounts.
Schedule A - Used for itemizing deductions on federal returns, Schedule A parallels the deduction sections of the Alabama 40, allowing taxpayers to detail their eligible expenses.
Schedule C - This form reports income or loss from a business. Like the Alabama 40, it requires detailed income reporting and is often used by self-employed individuals.
Schedule D - This form is used for reporting capital gains and losses. Both the Alabama 40 and Schedule D require the reporting of specific income types and their tax implications.
Form 8889 - This form is for Health Savings Accounts (HSAs). It shares similarities with the Alabama 40 in that it requires detailed reporting of contributions and distributions affecting taxable income.
Dos and Don'ts
When filling out the Alabama 40 form, it’s essential to follow specific guidelines to ensure accuracy and compliance. Here are seven things to do and avoid:
- Do double-check your social security number for accuracy.
- Do use black ink when completing the form.
- Do ensure you sign and date the return before submitting.
- Do keep a copy of the completed form for your records.
- Don't leave any required fields blank; fill them in completely.
- Don't forget to attach any necessary schedules or forms, such as Schedule W-2.
- Don't enter federal tax withheld amounts from your W-2 on the Alabama return.
Misconceptions
- Misconception 1: The Alabama 40 form is only for full-year residents.
- Misconception 2: You cannot file an amended return using the Alabama 40 form.
- Misconception 3: You must itemize deductions to file the Alabama 40 form.
- Misconception 4: All income must be reported on the Alabama 40 form.
- Misconception 5: Filing the Alabama 40 form is the same as filing a federal tax return.
- Misconception 6: You cannot claim dependents on the Alabama 40 form.
- Misconception 7: You must attach all supporting documents to the Alabama 40 form.
This form is designed for both full-year residents and part-year residents of Alabama. Individuals who moved in or out of the state during the tax year can also file using this form.
In fact, the Alabama 40 form includes a checkbox to indicate that the return is amended. Taxpayers can use this form to correct previously filed returns.
Taxpayers have the option to take a standard deduction. They can choose between itemizing deductions or using the standard deduction based on their financial situation.
While most income must be reported, certain types of income, such as some social security benefits, may not be taxable in Alabama. Taxpayers should review the instructions to determine what needs to be reported.
The Alabama 40 form is specific to state taxes and has different requirements than the federal tax return. Taxpayers must be aware of these differences when preparing their forms.
Taxpayers can claim dependents on the Alabama 40 form. This can lead to tax benefits, such as dependent exemptions, which can reduce overall tax liability.
While certain documents, such as W-2 forms, must be attached, not all supporting documents need to be submitted with the return. Taxpayers should keep copies of these documents for their records.
Key takeaways
The Alabama 40 form is used for filing individual income tax returns for residents and part-year residents for the specified tax year.
Ensure accurate personal information is provided, including social security numbers and addresses. This is crucial for processing your return correctly.
Filing status options include Single, Married Filing Joint, Married Filing Separate, and Head of Family. Select the appropriate status to determine your tax rates and deductions.
Income must be reported accurately. Include wages, interest, dividends, and other sources of income as specified in the form.
Adjustments to income can reduce your taxable income. Make sure to list all eligible deductions, such as IRA contributions and health insurance deductions.
Calculate your total tax liability by using the tax tables provided. Ensure that all calculations are accurate to avoid issues with the Alabama Department of Revenue.
Submit the form to the correct address based on whether you are expecting a refund or making a payment. Follow the instructions carefully to ensure timely processing.