#10 Comm. Office



Nonresidents Only



Forms and Instructions

Form

40NR

Booklet

2021 www.revenue.alabama.gov

Alabama

www.myalabamataxes.alabama.gov

Index

Address Change … 14

Addresses of Taxpayer Service

Centers … 3

Alimony or Separate Maintenance

Amount paid … 13

Amount received … 11

Amended Return … 14

Amount You Owe … 10

Annuities … 11

Armed Forces, Members of … 4

Business income or (Loss)

(Federal Schedule C) … 12

Business Use of Home … 19

Casualty and Theft Losses … 18

Corresponding With Alabama

Department of Revenue … 14

Death of Taxpayer … 14

Dependents … 9

Dividend Income … 11 and 19

Domicile … 4

E-Check … 10

Educational Expenses … 19

Employee Business Expenses … 18

Estates and Trusts … 12 and 20

Estimated Tax … 10 and 15

Extension of Time to file … 15

Farm Income or (Loss) … 12

Federal Tax Deduction … 8, 13 and 27

Figuring Your Income Tax … 9, 21-26

Filing Requirements —

When To File … 5

Where To File … 11

Which Form To File … 5

Who Must File … 4

Filing Status —

Which Box To Check … 6

Forms, How To Get … 29

Gains … 12 and 19

General Information … 13

Gifts to Charity … 17

Head of Family … 6

Income (Examples) —

You Must Report … 7

You Do Not Report … 7

Income Tax Withheld (Alabama) … 8

Income Tax Deduction (Federal) … 8, 13 and 27

Interest Income … 11 and 19

Interest — Late Payment of Tax … 14

Interest — Penalty on Early

Withdrawal of Savings … 13

Individual Retirement Arrangement (IRA) … 12

Itemized Deductions … 8 and 15

Keogh Plan — Deduction For … 12

Losses … 12 and 19

Married Persons — Filing Joint or

Separate Return … 6

Medical and Dental Expenses … 16

Military Personnel —

Residents of Alabama … 4

Nonresidents of Alabama … 4

Moving Expenses … 13

Miscellaneous Itemized Deductions …

Mutual Funds … 19

Name and Address … 6

Nonresidents of Alabama —

Which Form To File … 5

Who Must File … 4

Other Income … 8 and 12

Partnerships … 12 and 20

Payments —

Check/Money Order … 10

Credit Card … 10 and 29

ACH Debit (E-Check) … 10

Penalty —

Criminal Liability … 14

Late Filing … 14

Late Payment of Tax … 14

Other Penalties … 14

Pensions … 11

Personal Exemption … 6

Preparer, Tax Return … 11

Qualified Long-Term Care … 18

Records — How Long To Keep … 14

Refund, When Should I Receive? … 15

Rents and Royalties … 12 and 20

Requesting a Copy of Your Tax Return … 14

Rounding Off To Whole Dollars … 7 and 8

S Corporations … 12 and 20

Salaries … 8

Schedules A, B, D, E, no Sch. CR

on 40NR … 15-20

Self-employed Health

Insurance Premiums … 13

Setoff Debt Collection … 15

Sign Your Return … 11

Single Person … 6

Social Security Number … 6

Standard Deduction … 8 and 9

Steps For Preparing Your Return … 5

Students and Dependents … 5

Substitute Forms … 14

Tax Assistance for Taxpayers … 3

Tax Tables … 21-26

What’s New … 2

Where to file Form 40NR … 11

What’s New For 2021

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 in-

formation available. Our website also hosts links to PC on-line filing providers sup-

porting 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 Confirma-

tion 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 My

Alabama Taxes (MAT) at www.myalabamataxes.alabama.gov. Please see the

credit instructions in this booklet and Schedule OC instructions for more information.

Contributions to an Achieving a Better Life Experience (ABLE) savings ac-

count – Beginning January 1, 2021, a deduction for contributions made to an Ala-

bama ABLE savings account of an amount up to five thousand dollars ($5,000) per

year. See instructions for more information.

★

Shoals

Tuscaloosa

Jefferson/

Shelby

Montgomery

Mobile

Huntsville

Gadsden

Auburn/Opelika

Dothan

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.

 Auburn/Opelika Taxpayer Service Center

3300 Skyway Drive

Auburn, AL 36830

Phone – (334) 887-9549

 Dothan Taxpayer Service Center

121 Adris Place

Dothan, AL 36303

Phone – (334) 793-5803

 Gadsden Taxpayer Service Center

701 Forrest Avenue

Gadsden, AL 35901

Phone – (256) 547-0554

 Huntsville Taxpayer Service Center

4920 Corporate Drive, Suite H

Huntsville, AL 35805

Phone – (256) 837-2319

 Jefferson/Shelby Taxpayer Service Center

2020 Valleydale Road, Suite 208

Hoover, AL 35244

Phone – (205) 733-2740

 Mobile Taxpayer Service Center

851 E. I-65 Service Road South, Bel Air Tower, Suite 100

Mobile, AL 36606

Phone – (251) 344-4737

 Montgomery Taxpayer Service Center

2545 Taylor Road

Montgomery, AL 36117

Phone – (334) 242-2677

 Shoals Taxpayer Service Center

201 South Court Street, Suite 200

Florence, AL 35630

Phone – (256) 383-4631

 Tuscaloosa Taxpayer Service Center

1434 22nd Avenue

Tuscaloosa, AL 35401

Phone – (205) 759-2571

SECTION

Filing

1Information

First, be certain you need to file a tax return. Your

marital status, filing status, and gross income deter-

mine whether you have to file a tax return. Gross in-

come 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 in-

structions to find out which types of income you

should include.

Other Filing Requirements

Refunds. Even if your gross income was less

than the amounts shown, you must file a return to

get a refund if Alabama income tax was withheld

from any amounts paid to you.

Domicile. Individuals who are domiciled in (or

residents of) Alabama are subject to tax on their en-

tire income whether earned within or without Ala-

bama. This is true regardless of their physical

presence within Alabama at any time during the tax-

able year. Domicile is where one lives, has a per-

manent 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 abandon-

ment 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 Ala bama in-

come 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 Ala bama driver’s license, does not in-

tend to apply for U.S. Citizenship, and intends to ul-

timately return 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 in-

come earned from all sources.

Military Personnel (Residents). Military per-

sonnel whose legal residence is Alabama are sub-

ject to Alabama income tax on all income regardless

of the source or where earned unless specifically ex-

empt 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 ac-

tual place of residence until proof of change in 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 Re-

lief 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). Non resi-

dent military personnel merely having a duty station

within Alabama (whose legal residence is not Ala-

bama) are not required to file an Alabama income

tax return unless they have earned income from Ala-

bama 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 mar-

ried nonresident with income earned in Alabama

may file either a separate return claiming himself or

You Must File A Return If…

You were a: and your marital status at the end of 2021 was: and your filing status is: and your gross income was at least:

Single (including divorced and legally separated)

Single $ 4,000

Full Year Head of family $ 7,700

Resident Married and living with your spouse at the end Married, joint return $10,500

of 2021 (or on the date your spouse died) Married, separate return $ 5,250

Single (including divorced and legally separated)

Single $ 4,000 (while an Alabama resident)

Part Year Head of family $ 7,700 (while an Alabama resident)

Resident Married and living with your spouse at the end Married, joint return $10,500 (while an Alabama resident)

of 2021 (or on the date your spouse died) Married, separate return $ 5,250 (while an Alabama resident)

Single (including divorced and legally separated) Single or head of family

Over the allowable prorated exemption.

Nonresident Married and living with your spouse at the end Married, joint return

of 2021 (or on the date your spouse died) Married, separate 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 our 24-hour toll-free Refund Hotline at 1-855-894-7391.

How To Use This Instruction Booklet

The instructions for Form 40NR are divided into five 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 when you should receive your refund.

 SECTION 5 contains instructions for completing most of the schedules that may be attached to

Form 40NR.

If you follow the steps in Section 2 and the specific instructions in Section 3, you should be able to fill

in your return quickly and accurately.

herself only, or a joint return claiming the total al-

lowable personal exemption.

The “Military Spouses

Residency Relief Act” (Public Law 111-97) 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 juris-

diction of the United States if the spouse is not a resi-

dent 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 mil-

itary orders.

Dependent’s and Student’s Income. Depen d-

ents who are residents of Alabama must file a return

if they meet the requirements under You Must File

A Return IF… on page 4. 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 ex-

emption of $1,500 and his or her parents may claim

a dependent exemption if they provided more than

50% of the total support. See Dependent Exemption

on page 9.

When To File

You should file as soon as you can after January

1, 2022, but no later than the due date of the federal

return. If you file late, you may have to pay penalties

and interest. (See Penalties and Interest on page

14.) 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, 2022. 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 the 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 as-

sessed 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 re-

fund. Criminal liability could result from a continued

failure to file returns. (Refer to “Criminal Liability”

on Page 14.)

Which Form To File

You MAY Use Form 40A If You Meet

ALL 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 in-

come tax paid for a prior year, etc.,

 You do not have income from sources other

than salaries and wages, except for interest and div-

idend 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 Ala-

bama 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 and 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, or filing Mar-

ried Filing Joint under the “Military Spouses Resi-

dency Relief Act.” Non residents must prorate the

personal exemption. If your Alabama gross income

exceeds the prorated amount, 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 Ala-

bama sources while a non-resident during the same

tax year. In this case, both the total personal ex-

emption and the dependent exemption must be

claimed in the part-year resident return. No exemp-

tion can be claimed on the nonresident return. The

part year resident return should include only income

and deductions incurred during the period of resi-

dency. The nonresident return should include only

income and deductions incurred during the period of

non-residency.

SECTION

Steps for Preparing

2Your Return

By following these five useful steps, and reading

the specific instructions that follow, 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, W-2G, and 1099 that you have. If you do not re-

ceive 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 ex-

pense records so he or she can fill in your return cor-

rectly. Remember, even if your return is prepared in-

correctly by someone else, you are still responsible

Itemized Deductions. If you itemize deductions

(Forms 40 or 40NR), some of the records you need

are:

 Medical and dental payment records.

 Real estate and personal property tax receipts.

 Interest payment records for a home mortgage.

Step 2

Obtain any forms or schedules you

may need.

The fastest way to obtain forms is to down-

load them from our website www.revenue.

alabama.gov. Also see page 29 for more

information.

Step 3

Check your return to make sure

it is correct.

See Common Mistakes on page 11.

Step 4

Sign and date your return.

Form 40, 40A, or 40NR is not considered a re-

turn 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 5

Attach all necessary

forms and schedules.

Attach the state copies of all Forms W-2, W-2G,

1099’s and completed copy of your federal form to

the front of your return. Attach schedules and forms

in sequential order starting with Form 40NR.

If you need more space on forms or schedules,

attach separate sheets and use the same format as

the printed forms, but show your totals on the printed

forms. Please use sheets that are the same size as

the forms and schedules. Be sure to put your name

and social security number on these separate

sheets, and attach them at the end of the return.

Before mailing your return, check to make sure

you have retained an exact copy for your records. If

you owe tax, be sure to include payment and Form

40V with your return. Please see page 10 for addi-

tional payment options.

SECTION

Specific

3Instructions

Name and Address

Please type or print your name, address, and so-

cial 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 that a so-

cial security number is reported incorrectly:

 failure to place number on return,

 memorized wrong number,

 copied number wrong,

 gave an incorrect number to the tax preparer,

 gave your employer an incorrect number.

IMPORTANT: Check your W-2 forms. Your em ploy -

er 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 in-

come, does not have a social security number, and

you file a separate return, write "NRA" in the block

for your spouse's social security number. 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 secu-

rity number, please get Form SS-5 from a Social Se-

curity Administration (SSA) office. File it with your

local SSA office early enough to get your number

before April 15.

IMPORTANT: Notify the Social Security Ad min is tra-

tion (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 helps 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 de-

termined 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 ei-

ther by divorce or separate maintenance decree.

If you check box 1, multiply $1,500 by the per-

centage on line 10, and enter the result on line

15.

Married

Joint or Separate Returns?

Joint Returns. Most married couples pay less

tax if they file a joint return. You must report all in-

come, exemptions, deductions, and credits for you

and your spouse. Both of you must sign the return

even if only one of you had income.

Common law

marriages entered into before January 1, 2017, are

recognized by the State of Alabama for income tax pur-

poses.

You and your spouse can file a joint return if you

were living together on December 31, 2021, 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

due date of the return, choose to file separate re-

turns for that year.

If your spouse died in 2021, you can file a joint

return for 2021. You can also file a joint return if your

spouse died in 2022 before filing a 2021 return. For

details on how to file a joint return, see Death of

Taxpayer on page 14.

If you check box 2, multiply $3,000 by the per-

centage on line 10, and enter the result on line

15.

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 return.

Note: Alabama is not a community property state.

If you file a separate return, write your spouse’s

social security number in the space on line 3.

If your spouse does not file, attach a statement

explaining why your spouse is not required to file.

If you check box 3, multiply $1,500 by the per-

centage on line 10, and enter the result on line

15.

Head of Family

An individual shall be considered Head of Fam-

ily if, and only if, such individual is not married at the

close of their 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, 2021, 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 for your parent whom

you can claim as a dependent. Your parent did not

have to live with you in your home.

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-grand-

child, etc., adopted child, or stepchild. This child

must be your dependent. However if your child’s

other parent claims him or her as a dependent under

the federal rules for Children of Divorced or Sep-

arated Parents, this child does not have to be your

dependent.

c. Any relative whom you can claim as a de-

pendent. (See definition of a dependent on page 9.)

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 if the home was that person’s main

home for the part of the year he or she was alive.

If you check box 4, multiply $3,000 by the per-

centage on line 10, and enter the result on line

15.

Special Rules

A nonresident taxpayer who receives income

from Alabama sources or for performing services

within Alabama and who also had income while a

resident of Alabama during the same tax year must

file both the Alabama Nonresident Form 40NR and

the Alabama part-year Form 40. If you are required

to file both returns, the total personal exemption

and the dependent exemption must be claimed

on the part-year return (Form 40). No personal

exemption or dependent exemption can then be

claimed on the nonresident return (Form 40NR).

Income

A nonresident of Alabama is subject to tax on all

income received within or for services performed in

Alabama and amounts received from the sale of

property located in Alabama unless specifically ex-

empt. The term “income” includes, but is not limited

to; salaries, wages, commissions, income from busi-

ness or professions, alimony, rents, royalties, inter-

est, dividends, and profits from sales of real estate,

stocks, or bonds. Military pay is not taxable for non-

residents of Alabama.

Examples of Income

You MUST Report

The following kinds of income should be reported

on Forms 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, mort-

gages on which you receive payments, accounts

with saving and loan associations, mutual savings

banks, credit unions, etc.

 Original Issue Discount (Schedule B).

 Distributions from an Individual Retirement

Arrangement (IRA) including SEPs (Simplified Em-

ployee Pension) 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 re-

ceived that are more than you spent for the ex-

penses.

 Amounts received in place of wages from ac-

cident and health plans (including sick pay and dis-

ability pensions) if your employer paid for the policy.

 Alimony or separate maintenance 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).

 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 resi-

dence as reported on your Federal return (Sched-

ule D).

 Rents and Royalties (Schedule E).

 Your share of estate or trust income (Sched-

ule E).

 Prizes and awards (contests, lotteries, and

gambling winnings) (W-2G).

 Income from sources outside the United

States.

 Director’s fees.

 Fees received as an executor or administra-

tor of an estate.

 Embezzled or other illegal income.

 Refunds of Federal Income tax if previously

de ducted 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.

 Jury duty pay.

 Nonqualified Withdrawal from Alabama Col-

lege 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 Sys-

tem 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 Retire ment

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.

 Death benefits received by a designated ben-

eficiary of a peace officer or fireman killed in the line

of duty.

 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 Ala-

bama 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 be-

cause 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 reimburse-

ments for normal living expenses.)

 Military allowances paid to active duty mili-

tary, National Guard, and active reserves for quar-

ters, subsistence, uniforms, and travel.

 Subsistence allowance received by law en-

forcement and corrections officers of the State of

Alabama.

 All retirement compensation received by an

eligible fire fighter or a designated beneficiary from

any Alabama firefighting agency.

 All retirement compensation received by an

eligible peace officer or a designated beneficiary

from any Alabama police retirement system.

 Income earned while serving as a foreign

missionary after first serving 24 months as a mis-

sionary 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 Presi-

dent of the United States.

 An amount up to $50,000 for Tax Years 2020

and forward and $25,000 for Tax Years 2019 and

prior received as severance, unemployment com-

pensation 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 re-

ceived from Alabama Prepaid Affordable College

Tuition Contracts (PACT).

 Qualified withdrawals from an Alabama 529

savings plan.

 Beginning January 1, 2016, all income, inter-

est, dividends, gains or benefits of any kind received

from an ABLE (Achieving Better Life Experience)

savings account.

 Effective with tax year 2020, insurance bene-

fits received by a certified firefighter as a result of a

cancer diagnosis to any extent the amounts are in-

cluded 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 be-

comes $1.00, and $2.69 becomes $3.00.

Line 5

Wages, Salaries, Tips, Etc.

Alabama tax withheld information must be re-

ported on Schedule W-2. (See Schedule W-2 in-

structions 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 with-

held or wages reported on your Form W-2. If any

amount is incorrect or illegible, you should contact

your employer and request a corrected statement.

Do not include these taxes 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

Income From ALL Sources. Report income

from all sources on Schedule W-2, Column H.

See Schedule W-2 instructions for more infor-

mation. Show the total amount of wages, salaries,

fees, commissions, tips, bonuses, and other

amounts you were paid before taxes, insurance, etc.

were taken out.

This includes the income earned in Alabama as

well as the income earned outside of Alabama. Even

though the income earned outside of Alabama is not

taxable to Alabama, it must be included in order to

determine the ratio of Alabama income to total in-

come from all sources. This determines the personal

exemption, dependent exemption, and itemized de-

ductions or standard deduction you may claim in ar-

riving at the income on which you figure the amount

of tax you owe Alabama.

In Column B – “All Sources” enter the total in-

come from Schedule W-2, Line 18, Column H.

Alabama Income. Report all W-2 information

on Schedule W-2. See Schedule W-2 instructions

for more information. On column C – “Alabama In-

come”, enter the amount from Schedule W-2, Line

18, Column I. The amount shown in the box headed

“State Wages” on your Form W-2 should be in-

cluded on Schedule W-2. Report all wages, salaries,

fees, commissions, tips, bonuses, and other

amounts of income that were earned in Alabama

even if you do not have a Form W-2. (These

amounts should also have been included in Column

B.)

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.

This is due to the fact that amounts deducted from

their wages as “Contributions to the Alabama State

Retirement System” qualify for deferral on the fed-

eral return, but do not qualify for deferral on the Ala-

bama return.

Statutory Employees. If you were a statutory

employee, the Statutory employee box of your W-2

form should be checked. Statutory employees in-

clude full time life insurance salespeople, certain

agent or commission drivers and traveling sales-

people, and certain homeworkers.

Please see the Schedule W-2 instructions for in-

formation on how to report your “Statutory Em-

ployee” wages.

Line 6

Other Income

All taxable income you received that is not re-

ported on line 5 should be entered on line 6. This in-

cludes interest income, dividends, rents, royalties,

gains from sale of property, etc.

See Examples of Income You DO NOT Report

and Examples of Income You MUST Report on

page 7 of these instructions for further details on in-

come which should be included on this line.

If you have income from other sources, you must

complete page 2, Part I and attach the appropriate

schedule(s).

Line 8

Adjustments to Income

If you made payments to an Individual Retire-

ment Arrangement (IRA), Keogh Retirement Plan,

Simplified Employee Pension (SEP), paid self-em-

ployment health insurance premiums, incurred

penalties for the early withdrawal of funds, or in-

curred deductible moving expenses, then these

items should be shown as an adjustment to income.

For more information on the above deductions

see the instructions on page 12 for page 2, Part II .

The adjustments to income from Part II, line 8

should be entered on page 1, line 8.

Line 10

Alabama Percentage of Adjusted

Total Income

You must divide the amount on line 9, Column

C, by the amount on line 9, Column B, to determine

the ratio of Alabama Adjusted total income to the Ad-

justed total income from all sources. If the amount in

Column C is larger than the amount in Column B,

you should enter 100% on line 10. If the amount in

Column C is a loss (less than 0) enter 0% on line 10.

Line 11

Other Adjustments

If you paid alimony, adoption expenses and/or

qualifying health insurance for a small employer em-

ployee, you should show these amounts as other

adjustments to income. The amount that needs to

be entered on line 11, will come from the total other

adjustments on page 2, part 3, line 4 and line 6 of

your return. See instructions for page 2, part 3, on

page 13 of this booklet for more instructions.

Line 12

Adjusted Gross Income

If the amount on Column C, line 12 is less than

zero you may have a net operating loss that you can

carry to another tax year. If you carry the loss back

to earlier years, you should check the amended re-

turn box on your Form 40NR and attach Form NOL-

85 and/or Form NOL-85A.

Line 13

Itemized or Standard Deduction

You have the option to either itemize your de-

ductions or you may claim the optional standard de-

duction. You should compute your deduction both

ways to determine the option that gives you the

larger deduction. If you elect to claim the standard

deduction on your return and it later becomes nec-

essary to change to itemized deductions, you may

do so by filing an amended return.

If married and filing separate returns, both

spouses must claim the same deduction unless the

spouses have lived apart for the entire year, in which

case each spouse may claim either deduction. How-

ever, neither spouse may claim a deduction for ex-

penses paid by the other. See the instructions for

Schedule A for items that may be claimed as an

itemized deduction.

Itemized Deductions. If you elect to itemize

your deductions, you should check box a on line 13

and complete and attach Schedule A. The amount

shown on line 30 of Schedule A should be entered

on line 13.

Standard Deduction. If you elect to claim the

Standard Deduction, you should check box b on line

13, and use the chart on the next page to determine

the Standard Deduction allowable on your return. A

dependent or student may take the standard de-

duction even if claimed as a dependent by someone

else. The Standard Deduction must be prorated by

the percentage on page 1, line 10.

Line 14

Federal Income Tax Deduction

A nonresident of Alabama may deduct from Ala-

bama adjusted gross income a portion of the Fed-

eral income tax due on the 2021 Federal income

tax return. In order to determine the amount de-

ductible, you must complete page 2, Part IV of Form

40NR. The instructions for completing Part IV are on

page 13 of this booklet.

Line 15

Personal Exemption

Enter the personal exemption amount from line

1, 2, 3, or 4 multiplied by the percentage on line 10.

A dependent or student may take the personal ex-

emption even if claimed as a dependent by someone

else.

Line 16

Dependent Exemption

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

is also related to the taxpayer in one of the following

relationships:

Son Stepfather

Daughter Mother-in-law

Stepson Father-in-law

Stepdaughter Brother-in-law

Legally adopted child Sister-in-law

Parent Son-in-law

Grandparent Daughter-in-law

Grandchild If related by blood:

Brother Uncle

Sister Aunt

Stepbrother Nephew

Stepsister Niece

Stepmother

Note: You cannot claim a foster child, friend, cousin,

yourself, or your spouse as a dependent under Ala-

bama law.

Birth or Death of Dependent. You can take an

exemption for a dependent who was born or who

died during 2021 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 2021. If you file a joint

return, the support can be from you or your spouse.

You cannot claim credit on an Alabama return for a

dependent if you provided less than 50% of the sup-

port under Alabama law as you can under federal

law in certain conditions.

If you are married and filing a separate return,

you must consider only the amounts you separately

furnished out of your income in determining whether

or not you provided over 50% of the dependent’s

support. Do not include any amounts your spouse

furnished for the support of the dependent.

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, sav-

ings, welfare benefits). If your child was a student, do

not include amounts he or she received as scholar-

ships.

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.

If you qualify to claim your child and/or other in-

dividuals as your dependent, you must complete on

page 2, Part V. The total credit entered on page 2,

Part V, line 4 should be entered on page 1, line 16.

Amount on Dependent

Col. B, Line 12, Page 1 Exemption

0 - 20,000 1,000

20,001 - 100,000 500

Over 100,000 300

Line 19

Figuring Your Tax

You must figure your tax from the Tax Tables on

pages 21-26 unless you are claiming a carryover or

carryback net operating loss from another year.

Indicate the method you are using by checking

the appropriate box. If you are claiming a net oper-

ating loss from another year, you must complete and

attach Form NOL-85A.

Line 20

Net Tax Due Alabama

If you are using tax credits to reduce your tax li-

ability, Schedule OC must be completed in order to

compute your net tax due. You must check the box

to indicate you are using Schedule OC to compute

your net tax due. If you do not have any tax credits,

enter the amount from line 19.

Credits - Schedule OC

Schedule OC must be completed for a credit claim

and Individual taxpayers must register to set up an

account in My Alabama Taxes (MAT) at

www.myalabamataxes.alabama.gov for approval

before claiming certain credits on their tax return.

Once logged into MAT, a taxpayer will need to lo-

Standard Deduction

Married Filing Joint Married Filing Separate Head of Family Single

____________________________ ____________________________ ____________________________ ____________________________

Adjusted Gross Standard Adjusted Gross Standard Adjusted Gross Standard Adjusted Gross Standard

Income (Col. B, Line 12) Deduction Income (Col. B, Line 12) Deduction Income (Col. B, Line 12) Deduction Income (Col. B, Line 12) Deduction

$ 0 – $23,499

$23,500 – $23,999

$24,000 – $24,499

$24,500 – $24,999

$25,000 – $25,499

$25,500 – $25,999

$26,000 – $26,499

$26,500 – $26,999

$27,000 – $27,499

$27,500 – $27,999

$28,000 – $28,499

$28,500 – $28,999

$29,000 – $29,499

$29,500 – $29,999

$30,000 – $30,499

$30,500 – $30,999

$31,000 – $31,499

$31,500 – $31,999

$32,000 – $32,499

$32,500 – $32,999

$33,000 and over

$ 0 – $23,499

$23,500 – $23,999

$24,000 – $24,499

$24,500 – $24,999

$25,000 – $25,499

$25,500 – $25,999

$26,000 – $26,499

$26,500 – $26,999

$27,000 – $27,499

$27,500 – $27,999

$28,000 – $28,499

$28,500 – $28,999

$29,000 – $29,499

$29,500 – $29,999

$30,000 – $30,499

$30,500 – $30,999

$31,000 – $31,499

$31,500 – $31,999

$32,000 – $32,499

$32,500 – $32,999

$33,000 and over

$ 0 – $23,499

$23,500 – $23,999

$24,000 – $24,499

$24,500 – $24,999

$25,000 – $25,499

$25,500 – $25,999

$26,000 – $26,499

$26,500 – $26,999

$27,000 – $27,499

$27,500 – $27,999

$28,000 – $28,499

$28,500 – $28,999

$29,000 – $29,499

$29,500 – $29,999

$30,000 – $30,499

$30,500 – $30,999

$31,000 – $31,499

$31,500 – $31,999

$32,000 – $32,499

$32,500 – $32,999

$33,000 and over

$7,500

$7,325

$7,150

$6,975

$6,800

$6,625

$6,450

$6,275

$6,100

$5,925

$5,750

$5,575

$5,400

$5,225

$5,050

$4,875

$4,700

$4,525

$4,350

$4,175

$4,000

$ 0 – $10,749

$10,750 – $10,999

$11,000 – $11,249

$11,250 – $11,499

$11,500 – $11,749

$11,750 – $11,999

$12,000 – $12,249

$12,250 – $12,499

$12,500 – $12,749

$12,750 – $12,999

$13,000 – $13,249

$13,250 – $13,499

$13,500 – $13,749

$13,750 – $13,999

$14,000 – $14,249

$14,250 – $14,499

$14,500 – $14,749

$14,750 – $14,999

$15,000 – $15,249

$15,250 – $15,499

$15,500 and over

$3,750

$3,662

$3,574

$3,486

$3,398

$3,310

$3,222

$3,134

$3,046

$2,958

$2,870

$2,782

$2,694

$2,606

$2,518

$2,430

$2,342

$2,254

$2,166

$2,078

$2,000

$4,700

$4,565

$4,430

$4,295

$4,160

$4,025

$3,890

$3,755

$3,620

$3,485

$3,350

$3,215

$3,080

$2,945

$2,810

$2,675

$2,540

$2,405

$2,270

$2,135

$2,000

$2,500

$2,475

$2,450

$2,425

$2,400

$2,375

$2,350

$2,325

$2,300

$2,275

$2,250

$2,225

$2,200

$2,175

$2,150

$2,125

$2,100

$2,075

$2,050

$2,025

$2,000

cate the “Individual Income Tax” account type, then

select “Submit a Credit Claim” from the “Tax Incen-

tives” section on the right margin of the page and

follow a short series of steps to reserve their credit.

Supporting documentation for certain credits is re-

quired to be uploaded in MAT. Taxpayers needing

assistance with reserving a tax credit may call (334)

353-9770 or (334) 353-0602.

While all tax credits are reported on Schedule OC,

some require a separate schedule to be completed

before entering the results on Schedule OC and

some require a MAT account to reserve their credit

approval before submission on Schedule OC.

Please visit the Department’s website for more in-

formation on the Schedule OC and Schedule OC in-

structions for each of the following tax credits:

Alabama Enterprise Zone Credit, Basic Skills Edu-

cation Credit, Rural Physician Credit, Coal Credit,

Full Employment Act of 2011 Credit, Veterans Em-

ployment Act – Employers Credit, Veterans Em-

ployment Act- Business Start Up Expense Credit,

Qualified Irrigation System/Reservoir System tax

Credit, Alabama Accountability Tax Credit- School

Transfer Credit, Alabama Accountability Act Credit –

Scholarship Granting Organization (SGO) credit,

Alabama Adoption Credit, 2013 Alabama Historic

Rehabilitation Tax Credit, Career Technical Dual En-

rollment Credit, Investment Credit – Alabama Jobs

Act, Alabama Renewal Act – Port Credit, Alabama

Renewal Act – Growing Alabama Credit, Appren-

ticeship Tax Credit, 2017 Alabama Historic Tax Re-

habilitation Credit, Railroad Modernization Act of

2019 Credit, and the Income Tax Capital Credit. For

more information on credits see Schedule OC.

Line 22

2021 Estimated Tax Payments/

Automatic Extension Payments

Enter on this line any payments you made on

your estimated Alabama income tax (Form 40ES) for

2021 or automatic extension (Form 40V). Include any

overpayments from your 2020 return that you applied

to your 2021 estimated tax. (Do not include the bal-

ance you paid with your 2020 return in 2021 or any

overpayment from 2020 that was refunded to you.)

If you and your spouse paid joint estimated tax

but are now filing separate Alabama income tax re-

turns, either of you may claim all of the amount paid,

OR you can each claim a part of it. Please be sure to

show both social security numbers on the separate

returns. If you and your spouse paid separate esti-

mated tax but are now filing a joint income tax return,

add the amounts you each paid. These instructions

also apply if your spouse died during the year.

Caution: It is very important that the social security

numbers be the same on your current return, last

year’s return, and all of your estimate vouchers. The

department will be unable to allow you proper credit

for your payments unless the numbers are the same.

If the department is unable to verify the amount

claimed, you may be requested to submit copies of

all your canceled checks substantiating the amount

claimed. This will cause considerable delay in pro-

cessing your return.

Name Change. If you changed your name be-

cause of marriage, divorce, etc., and you made es-

timated tax payments using your former name,

attach a statement to Form 40NR explaining all the

payments you and your spouse made in 2021 and

the name(s) and social security number(s) under

which you made the payments.

Line 23

Composite Tax Payments/Electing

PTE Credit

If you are reporting income from a partnership or

S corporation which filed Alabama Form PTE-C, any

payment made on your behalf should be entered on

Schedule CP. For tax years beginning on or after

January 1, 2021, Act 2021-423 allows the owner,

member, partner, or shareholder of an electing pass-

through entity reporting income to be allowed a re-

fundable credit in an amount equal to its pro rata or

distributive share of the Alabama income tax paid by

the electing pass-through entity with respect to the

corresponding tax year. This amount needs to be re-

ported on Schedule CP. The amount from Schedule

CP, Section B, line 1 should be entered on line 23.

Line 24

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 25

Refundable Credit

This line is only for the refundable portion of

Alabama Accountability Act, Adoption Credit, or

Historic Tax Rehabilitation Act of 2017 Credit.

Enter the amount from Schedule OC, Section F,

line F4.

Line 27

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 29

Amount You Owe

(If line 20 is larger than line 28)

Subtract line 28 from line 20, and enter the

amount on line 29 – this is the amount you owe the

State of Alabama.

Pay the full amount by check or money order

payable to the “Alabama Department of Revenue.”

On your payment write your social security number,

your daytime telephone number, and “2021 Form

40NR,” and remit your payment with Form 40V.

Credit Card: You can also pay your taxes due by

credit card online at https://www.officialpayments.

om or by phone at 1-800-272-9829. Enter Juris dic tion

Code 1100. You can also pay your taxes by credit card

online by visiting Value Payment Systems at

www.paystatetax.com/al. Discover/NOVUS®, Mas-

terCard®, Visa® and American Express® cards are

currently being accepted. There is a convenience fee

for this service. This fee is paid directly to the company

you use based on the amount of your tax payment

How do I pay by ACH Debit (E-check)? 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 ac-

count number to use this service. No fee is charged

for this service.

If you are paying with funds on a foreign bank

you must include an additional $25 exchange

fee.

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 14 of these

instructions.) More importantly, if you submit your re-

turn without payment, a final assessment may be

entered by the Department. A final assessment

which is not appealed is as conclusive as a judg-

ment of a circuit court. The Department may then

proceed with collection by issuance of legal

processes including recording of tax liens, gar-

nishment of wages or bank accounts, levy, or a

writ of seizure directed to the county sheriff as pro-

vided by Sections 40-1-2, 40-2-11(16), and 40-29-

23, Code of Alabama 1975.

Line 30

Estimated Tax Penalty

If the amount you owe (line 29) exceeds

$500.00, you may be subject to an estimate, or un-

derestimation penalty. Page 14 of this booklet pro-

vides additional information on these penalties, or

you can complete Form 2210AL. See page 29, “How

To Obtain Forms.”

Line 31

Overpayment

(If line 28 is larger than line 20)

Subtract line 20 from line 28, and enter the

amount on line 31 — this is the amount you over-

paid.

Line 32

Applied to 2022 Estimated Tax

You may elect to credit all or part of the over-

payment shown on line 31 to your 2022 estimated

Tax. Once an election is made to apply this over-

payment to your 2022 estimated tax, it cannot later

be refunded to you or applied to pay additional tax

for 2021.

Line 33

Refunded to You

Subtract the amount on line 32 from the amount

on line 31. If your return is complete and contains

no errors, you should receive your refund within 8 to

12 weeks after you mail it. See When Should I Re-

ceive My Refund? on page 15 of this booklet for

further information about your refund.

Sign Your Return

Form 40NR is not considered a return unless

you sign it. Please sign in black ink only. Your

spouse must also sign if it is a joint return. If you are

filing a joint return with your deceased spouse, see

Death of Taxpayer on page 14.

Did You Have Someone Else Prepare Your

Return? If you fill in your own return, the Paid Pre-

parer’s Use Only area should remain blank. Some-

one 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 the

return.

If you have questions about whether a preparer

is required to sign a return, please contact an Ala-

bama Taxpayer Service Center.

The preparer required to sign your return MUST:

 Sign, by hand, in the space provided for the pre-

parer’s signature. (Signature stamps or labels are

not acceptable.)

 Give you a copy of your return for your records 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 en-

tered the correct name(s), address, and social se-

curity 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 if there are any problems with processing

your return.

Common Mistakes

Which Delay Refunds

Errors delay your refund. This checklist should

help you file your form correctly:

1. Is your address correct?

2. If you took the standard deduction, did you use

the chart on page 9?

3. Did you include your W-2 forms and any other

forms? Did you assemble all forms and sche dules

in the proper order? (See Step 5 on page 5.)

4. Is your math correct? (Note: Check your math

carefully when figuring your refund or amount you

owe.)

5. Did you find the correct tax in the Tax Table for

your filing status and taxable income?

6. Did you write your social security number, day-

time phone number, and “2021 Form 40NR” on your

check or money order?

7. Did you sign and date your tax form?

If you want the Department to contact your tax

preparer, please give permission to do so by check-

ing the box above the signature line.

Where To File

If you are receiving a refund (Form 40NR, line

33), mail your return to:

Alabama Department of Revenue

P.O. Box 154

Montgomery, AL 36135-0001

If you are making a payment (Form 40NR, line

29), 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 pay-

ment, mail your return to:

Alabama Department of Revenue

P.O. Box 327469

Montgomery, AL 36132-7469

Page 2, Part I

Other Income

All taxable income other than salaries, wages,

commissions, etc. that is not reported on page 1, line

5 should be reported in page 2, Part I.

The total other income from all sources should

be reported in Column B under the heading “All

Sources.” The income reported in Column B should

be the same as would be reported by a resident of

Alabama.

Example: You may be required to report interest

income from obligations of the U.S. Government on

your federal return, but since this income is not tax-

able to Alabama it should not be included in Column

All income you listed in Column B earned in the

State of Alabama should also be listed in Column C

under the heading “Alabama Sources.” Use only the

lines and schedules applicable to your types of

income.

Line 1

Interest and Dividend Income

Any interest or dividend income received in 2021

with Alabama legal jurisdiction should be reported

in Column C. All other interest or dividend items that

would normally be taxable to an Alabama resident

should be reported in Column B.

Note: Interest or Dividend items received from pass

through entities such as Partnerships or S-Corpora-

tions should not be reported as separate line items

on Schedule B, but should be included in total on

the Alabama Schedule E.

If you received dividends and interest income of

more than $1,500 in 2021, you must complete and

attach Schedule B. Enter the taxable amount shown

in Schedule B on Part I, line 1.

Line 2

Alimony Received

Alimony and separate maintenance payments

received by a nonresident of Alabama in 2021 are

not taxable for Alabama purposes. However, any

amounts you received in 2021 must be included in

the total adjusted gross income from all sources to

the same extent that it is includable on your 2021

Federal return. The amount received should be

listed in Column B only. Do not include amounts you

received which are child support.

Line 3

Pensions and Annuities

Pension and annuity payments received by a

nonresident are not subject to Alabama tax. How-

ever, pension and annuity payments you received

in 2021 that would be taxable to a resident of Ala-

bama must be included in the total adjusted gross

income from all sources in order to compute the ratio

of Alabama adjusted gross income to total adjusted

gross income from all sources:

Payments you received from any of the follow-

ing are not taxable and should not be included in the

income reported on line 3:

 State of Alabama Teachers’ Retirement.

 State of Alabama Employees’ Retirement.

 State of Alabama Judicial Retirement.

 United States Civil Service Retirement.

 Retirement systems created by the Federal So-

cial Security Acts.

 Railroad retirement benefits received under the

Federal Railroad Retirement Acts of 1935 and

1937.

 Military Retirement Pay.

 TVA Pension System Benefits.

 U.S. Foreign Service Retirement and Disability

Fund Annuities.

 U.S. Government Retirement Fund Benefits.

 Any Defined Benefit Retirement Plan in accor-

dance with IRC 414(j). Contact your retirement

plan administrator to determine if your plan

qualifies.

Enter on line 3 the taxable portion of all pensions

and/or annuities you received in 2021 that would be

taxable to a resident of Alabama. The amount to be

reported would be the same as reported on your

Federal return except for income from those sources

previously listed as exempt.

Line 4

Business Income or (Loss)

If you conducted a business or practiced a pro-

fession during the taxable year, you must complete

and attach a copy of Federal Schedule C or C-EZ

to your Alabama return.

Generally, you may deduct the ordinary and nec-

essary expenses of doing business — the cost of

merchandise, salaries, interest, taxes, rent, repairs,

and incidental supplies.

In the case of capital investments and improve-

ments in depreciable property such as buildings, ma-

chines, and similar items having a useful life of more

than one year, Alabama law provides for a “reason-

able allowance” for depreciation over the useful life

of the property.

If some of your expenses are part business and

part personal, you can deduct ONLY the business

portion.

Adjustments to Federal Schedules C and F. Ala-

bama law differs from federal law in the treatment of

some of the expenses shown on Federal Schedules

C, and F, and certain items may need adjusting for

Alabama purposes. The expenses which may need

adjusting are:

 Percentage Depletion Gas and Oil. In the case

of oil and gas wells, the allowance for depletion

shall be 12 percent of the gross income from the

property during the taxable year, excluding from

such gross income an amount equal to any rents

or royalties paid or incurred by the taxpayer in re-

spect to the property. Such amounts shall not ex-

ceed 50 percent of the net income of the

taxpayer, computed without allowance for deple-

tion, from the property, except that in no case

shall the depletion allowance be less than the

amount allowable under federal income tax law.

 Cost Depletion Natural Resources Other than

Gas and Oil. Alabama law has no provision for

percentage depletion of natural resources other

than gas and oil, as currently allowed under fed-

eral law. For Alabama purposes, the depletion al-

lowance shall be computed using the cost

depletion method.

 Depreciation. Alabama law allows IRC Section

179 Expense for all taxable years beginning after

December 31, 1989. Adjustments may be nec-

essary if assets were acquired and placed in

service prior to tax years beginning January 1,

1990.

 Targeted “Jobs Credit.” You may have been

allowed to take a portion of your payroll expense

as a “Targeted Jobs Credit” on your federal re-

turn. This is an allowable expense for Alabama

income tax purposes.

 Passive Activity Losses. Alabama law has no

provision, similar to current federal law, which

limits the deduction of passive trade or business

activity losses.

If you have adjustments involving any of the pre-

viously described expenses, attach an explanation

and show the adjustment as “Other Expenses” on

Federal Schedule C or F.

The net profit or (loss) from business, as shown

on Federal Schedule C-EZ or C after above ad just-

ments (if applicable), should be entered on Part I,

line 4. The net profit or (loss) from all operations

within and without Alabama, as shown on Federal

Schedule C, after above adjustments (if applicable),

should be entered on Part I, line 4, Column B. The

net profit or (loss) from operations in Alabama

should be entered in Column C.

Line 5

Gain or (Loss) from Sale of

Real Estate, Stocks, Bonds, Etc.

If you sold real estate, stocks, bonds, or other

assets in 2021 the net gain or (loss) should be en-

tered in column B. The net gain or (loss) from the

sale of property located in Alabama should also be

entered in Column C.

If you sold your personal residence, any gain re-

alized is taxable to the same extent as reported on

your federal return.

Please see the instructions for Schedule D for

further information.

Line 6

Rents, Royalties, Partnerships,

Estates, Trusts, S Corporations

You must complete and attach Schedule E if

you received income in 2021 from any of these

sources. The instructions for completing Schedule

E are on page 20 of this booklet.

Line 7

Farm Income or (Loss)

If you operated a farm during the year, you must

attach Federal Schedule F to your return.

Alabama law differs from Federal law in the treat-

ment of some of the expenses shown on Federal

Schedule F. These differences are discussed in the

instructions for line 4, Part I. If any of these adjust-

ments apply to your return, you should show the ad-

ditional amounts as “Other Expenses” on Federal

Schedule F.

The net profit or (loss) from farm operations,

within and without Alabama, should be entered on

line 7, Column B. The net profit or (loss) from farm

operations in Alabama should also be entered in

Column C.

Line 8

Other Income

Enter on line 8 any other income you cannot find

a place for on your return or on another schedule.

State the nature and source in the space provided,

or attach a separate explanation.

The total other income from all sources should

be entered in Column B, and only the other income

earned in Alabama should be entered in Column C.

Foreign Income Exclusion. If you are entitled to

a foreign income exclusion, please attach a copy of

your Federal Form 2555 to your return and report

the amount of your exclusion as a credit in paren-

thesis (Example: (30,000)) on line 8 Other Income

on page 2 of your return. All foreign income must be

reported on your return, in order to receive any for-

eign income exclusion.

Nonqualified Distribution from Alabama 529

Savings Plan. If you receive a distribution from your

Alabama 529 Savings plan and do not use the dis-

tribution to pay qualified expenses, the amount not

used for qualifying expenses is taxable. Enter the

amount of the nonqualified distribution plus 10% of

the distribution and description on line 8, Columns B

and C, Other Income.

Nonqualified Withdrawal from ABLE Savings

Account. If you make a nonqualified withdrawal as

defined by Internal Revenue Code (26 U.S.C 529A),

the amount of the nonqualified withdrawal, plus 10

percent of the amount withdrawn, shall be taxable

as income in the year of the nonqualified withdrawal.

Report this amount on line 8, Columns B and C,

Other Income.

Note: Net operating losses are not allowed as a de-

duction on line 8 (Other Income). Net operating

losses can only be claimed on Form NOL-85A.

Page 2, Part II

Adjustments To Income

Line 1

Individual Retirement Arrangement

(IRA), Keogh Retirement Plan, and

SEP Deduction

Contributions to Individual Retirement Ar range-

ments, Keogh retirement plans, and SEP deduction

are deductible as an adjustment to income from “All

Sources” in Column B. The amount deductible in

Column C is limited to the contributions made from

income attributable to Alabama sources. The

amount deductible in Columns B and C is subject to

the same limitations as on your federal return. How-

ever, when figuring the limitation on the amount de-

ductible you must use the adjusted gross income

shown on line 12, Columns B and C of your Alabama

Return.

Line 2

Penalty on Early Withdrawal of

Savings

The Form 1099-INT given to you by your bank or

savings and loan association will show the amount

of any penalty you were charged for withdrawing

funds from your time savings deposit before its ma-

turity. Enter this amount on line 2, Column B only.

(Be sure to include the interest income on Part I, line

1, column B.) Note: Penalties on early withdrawal

from retirement plans are not deductible.

Line 3

Moving Expenses

Certain active duty Armed Forces Members may

deduct certain moving expenses as an adjustment

to gross income to the same extent and subject to

the same limitations as currently allowed under fed-

eral rules with the following exception:

The new job location must be within the State of

Alabama.

If you meet the requirements, complete and at-

tach Federal Form 3903 to figure the amount of

moving expenses. Enter the total and the new job

location as indicated on line 3.

Line 4

Self-employed Health Insurance

Deduction

Premiums paid for self-employed health insur-

ance are deductible as an adjustment to income

from “All sources” in Column B to the same extent as

determined in accordance with the Internal Revenue

Code Section 162.

The amount deductible in Column C is limited to

premiums paid based on the percentage of Ala bama

self-employment income to total self-employment

income.

Line 6

Certified Firefighter Health Insurance

Premiums

Effective with tax year 2020, certified Alabama

firefighters may deduct 100 percent of insurance

premiums paid for cancer insurance coverage as de-

fined in Act 2019-361, provided the premiums have

not been deducted from federal gross income or are

deductible under any other law. Insurance premi-

ums paid with pre-tax dollars will not be deductible.

Line 7

Contributions to an Achieving a

Better Life Experience (ABLE)

savings account

Act 2021- 514 allows an individual taxpayer to

deduct contributions made on or after January 1,

2021 to an Alabama ABLE savings account, by or

on behalf of such individual, of an amount up to five

thousand dollars ($5,000) per year.

Page 2, Part III

Other Adjustments

Line 1

Alimony

Enter the total amount of alimony paid as shown

on your federal return.

You can deduct payments of alimony or sepa-

rate maintenance made under a court decree to the

same extent allowed for federal income tax pur-

poses. Do not deduct lump-sum cash or property

settlements, voluntary payments not made under a

court order or a written separation agreement or

amounts specified as child support.

Line 2

Adoption Expenses

Enter the total amount of adoption expenses you

paid or incurred.

The reasonable medical and legal expenses paid

or incurred by a nonresident taxpayer in connection

with the adoption of a minor may be deducted. The

term “medical expenses” include any medical and

hospital expenses of the adoptee and the adoptee’s

biological mother which are incident to the adoptee’s

birth, and subsequent medical care and which, in the

case of the adoptee, are paid or incurred before the

petition is granted. Adoption agency fees are not de-

ductible. The expenses allowed in your 2021 return

are limited to those expenses paid or incurred on or

after January 1, 2021, even though adoption pro-

ceedings may have begun before this date.

Page 2, Part IV

Federal Income Tax Deduction

The federal income tax allowed as a deduction to

a nonresident of Alabama is the amount calculated

using the federal income tax deduction worksheet

on page 27. The balance is then prorated by the per-

centage of income earned in Alabama to the total in-

come from all sources. Self-Employment, Social

Security, and Medicare taxes can only be claimed if

you itemize deductions on Schedule A.

If you filed a joint federal return and have elected

to file a separate Alabama Return, you must com-

plete all lines in Part IV to determine your allowable

deduction. If you are single or married and filing a

joint Alabama Return with your spouse, you should

skip lines 1 through 3.

If you are a nonresident alien with income earned

in Alabama, the deduction for Federal Income Tax

should be computed by applying the ratio of Ala-

bama source income to total income received from

sources within the United States. In other words, in

the case of a nonresident alien, total income from all

sources does not include foreign source income that

is not required to be reported for Federal Income Tax

purposes.

Alabama income is determined for nonresident

aliens in the same manner as for other nonresidents.

Line 1

Enter your joint federal adjusted gross income.

Line 2

Enter your federal adjusted gross income.

Line 3

Divide line 2 by line 1.

Line 4

Enter federal income tax liability from line 6 of

Federal Income Tax Deduction Worksheet on page

27.

Line 5

Enter percentage from line 3 if you completed lines

1 through 3. Multiply line 4 by the percentage on line

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.

Line 6

Enter percentage from page 1, line 10.

Line 7

If you completed lines 1-3 above, multiply line 5

by the percentage on line 6. Otherwise, multiply line

4 by the percentage on line 6.

Page 2, Part V

Dependents

Before completing this section, see page 9 of

these instructions for the definition of a de-

pendent. Schedule DS must be finished first and

attached to your return to take the deduction for

dependents. Please follow the line-by-line in-

structions on Form 40NR to complete this sec-

tion.

Page 2, Part VI

General Information

ALL TAXPAYERS MUST

COMPLETE THIS SECTION

Please follow the line-by-line instructions on

Form 40NR to complete this section.

SECTION

General

4Information

This section contains general information about

items such as amending your tax return, how long to

keep records, filing a return for a deceased person,

and when you should receive your refund.

Substitute Tax Forms

You may not use your own version of a tax form

unless it meets the requirements of the Alabama De-

partment of Revenue. All privately designed and

printed substitute tax forms must be approved by

the Alabama Department of Revenue.

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 re-

turn. Alabama law provides that the same rate of in-

terest shall be collected as currently prescribed by

the Internal Revenue Service. Any of the Alabama

Taxpayer Service Centers listed in this booklet will

provide you the current rate of interest in effect at

the time your return is filed.

Failure To Timely File Return. Alabama law

provides a penalty of 10% of the tax due or $50,

whichever is greater, if the return is filed late. The

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 re-

mains unpaid. The maximum penalty is 25%.

Underpayment Penalty. If the amount you owe

for 2021 is $500.00 or more you may owe the

penalty for 2021 if the total of your withholding and

timely estimated tax payments did not equal at least

the smaller of:

1. 90% of your 2021 tax (66-2/3% for farmers),

2. 100% of your 2020 tax. (Your 2020 tax return

must cover a 12-month period.) Use Form 2210AL to

calculate the penalty.

Note: If you include interest, a failure to timely file, or

a failure to timely pay penalty with your payment,

identify and enter these amounts in the bottom mar-

gin of Form 40NR, page 1. Refer to form 2210AL for

instructions on how to calculate the underpayment

penalty.

Other Penalties. There are also penalties for un-

derpayment due to negligence, underpayment due

to fraud, and filing a frivolous return.

Any person failing to file a return as required by

Alabama law or rendering a false or fraudulent re-

turn will be assessed. The assessment will be based

on the best information obtainable by the department

with respect to the income of the taxpayer. In the

case of a willfully false or fraudulent return having

been rendered, the department shall add a penalty

of not more than 50% of such tax. This penalty is in

addition to any interest due as described above.

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 under this title who willfully

fails to make such return shall be guilty of a misde-

meanor and, upon conviction thereof, shall be fined

not more than $25,000 or imprisoned not more than

one year, or both. Section 40-29-110 provides that

any person who willfully attempts to evade any tax

imposed by this title or the payment thereof shall be

guilty of a felony and, upon conviction thereof, shall

be fined not more than $100,000 or imprisoned for

not more than five years, or both. These penalties

are in addition to any other penalties provided for by

Alabama law.

Address Change

If you move after filing your return you should no-

tify the Department of Revenue by sending a

Change of Address Form available on the Depart-

ment’s website under the General Tax Forms to:

Alabama Department of Revenue

Income Tax Administration Division

P.O. Box 327410

Montgomery, AL 36132-7410.

Corresponding With

Alabama Department

of Revenue

Be sure to include your social security number

and phone number in any correspondence with the

Alabama Department of Revenue.

How Long Should

Records Be Kept?

Keep records of income, deductions, and credits

shown on your return, as well as any worksheets

used to figure them, until the statute of limitations

runs out for that return. Usually this is three years

from the date the return was filed. If income that

should have been reported was not reported and the

income omitted is in excess of 25% of the stated in-

come, the period of limitation does not expire until

six (6) years after the due date of the return or six (6)

years after the date the return was filed, whichever

is later. There is no period of limitation when a

return is false or fraudulent, or when no return is

filed.

Also, keep copies of your filed tax returns as part

of your records. You should keep some records

longer than the period of limitation. For example,

keep property records (including those on your own

home) as long as they are needed to figure the basis

of the original or replacement property. Copies of

your tax returns will help in preparing future returns,

and they are necessary if you file an amended re-

turn. Copies of your returns and your other records

may be helpful to your survivor, or the executor or

administrator of your estate.

Requesting a Copy

of Your Tax Return

If you need a copy of your tax return or tax ac-

count information use Form 4506-A, Request for

Copy of Tax Form or Income Tax Account Informa-

tion. The charge for a copy of a return is $5. There

is no charge for tax account information.

Amended Return

If you have already filed a return and become

aware of any changes to income, deductions or

credits, you should file an amended tax return. You

should file a completed Alabama Individual Income

Tax Return with the “Amended” box checked. A de-

tailed explanation page of all the changes made

should be attached to the tax return.

Note: If your State return is changed for any reason,

it may affect your federal income tax liability. This in-

cludes changes made as a result of an examination

of your return by the Alabama De part ment of Rev-

enue. Contact the Internal Revenue Serv ice for more

information.

Death of Taxpayer

If a taxpayer died before filing a return, the tax-

payer’s spouse or personal representative must file

a return for the person who died if they were required

to file a return. A personal representative can be an

executor, administrator, or anyone who is in charge

of the taxpayer’s property.

The person who files the return should check the

box indicating which taxpayer is deceased and pro-

vide the date of death in the space provided. A copy

of the death certificate must also be attached to the

return.

If the taxpayer did not have to file a return but

had tax withheld, a return must be filed to receive a

refund.

If your spouse died within the tax year, you can

file a joint return even if you did not remarry. You

can also file a joint return if your spouse died before

filing the return. A joint return should show both your

and your spouse’s income during the tax year. Also,

write “Filing as surviving spouse” in the area where

you sign the return. If someone else is the personal

representative, he or she must also sign.

If you are claiming a refund as a surviving

spouse filing a joint return with the deceased and

you follow the above instructions, no other form is

needed unless you receive a joint refund check and

the refund check should be reissued in your name

only. In such case, you will need to file Form 1310A.

Form 1310A is used when you are a surviving

spouse requesting reissuance of the refund check

in your name only, a court-appointed or certified per-

sonal representative and did not file paperwork with

decedent’s original return, or any other person claim-

ing the refund for the decedent or on behalf of the

decedent’s estate.

Payment of Estimated Tax

Every individual who reasonably expects to owe

at least $500 in 2022 is required to file and pay es-

timated tax.

Note: If the TOTAL ESTIMATED TAX for 2022 is

less than five hundred dollars ($500), an estimate is

not required to be paid.

The procedures for filing and paying estimated

tax and the due dates are similar to Federal Income

Tax Law. Do not include payment of your estimated

tax with the payment for tax due on your individual

return because the quarterly voucher and remittance

MUST be mailed separately. Additional instructions

for filing your estimate are on the back of Form 40ES.

No refund will be made for any estimated taxes

paid except when such amount is taken as a credit

on an income tax return filed at the end of the tax-

able year by the payor or his authorized represen-

tative, or on an amended income tax return if the full

amount paid is not claimed on the original income

tax return.

Automatic Extension

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 Oc-

tober 15, 2022. If you anticipate that you will owe ad-

ditional tax on your return, you should submit your

payment with a payment voucher (Form 40V) by the

due date of the 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 as-

sessed 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.

Setoff Debt Collection

If you owe money or have a delinquent account

under any of the following public assistance pro-

grams, your refund may be applied to offset that

debt:

 Any and all of the public assistance pro-

grams administered by the Alabama Department

of Human Resources including the Child Support

Act of 1979, Chapter 10 of Title 38.

 Any and all of the assistance programs ad-

ministered by the Alabama Medicaid Agency.

 Overpayment of unemployment

compensation.

 Any and all unpaid debt submitted by local

governmental entities.

 Any and all court fees/fines owed to the Ad-

ministrative Office of Courts.

If the Alabama Department of Human Re-

sources, the Alabama Department of Labor, the Ad-

ministrative Office of Courts, or the Alabama

Medicaid Agency notifies the Alabama Department

of Revenue that you have a delinquent account in

excess of $25, part or all of your refund may be ap-

plied to offset that debt. If you are married and filing

a joint return, the joint refund may be applied to off-

set any of these debts.

IMPORTANT: If you have been assessed taxes

from a prior year, your current year refund will be ap-

plied to that debt even if the liability resulted from a

jointly filed return.

Federal Refund

Offset Program

Your 2021 federal or state refund will be taken

to satisfy any outstanding liabilities owed to the State

of Alabama or to the Internal Revenue Service.

When Should I

Receive My Refund?

If you are due a refund, it will be mailed to you at

the earliest possible date. Normally, it takes up to 90

days to process your return and get your refund to

you. The earlier you file your return the sooner you

will receive your refund.

If you do not receive your refund within 90 days

of the due date or within 90 days after you file your

return, whichever is later, the state will pay you in-

terest and include it with your refund.

It may take longer than 90 days to process

your refund if it is incomplete or incorrect. Your re-

fund may be delayed for the following reasons:

 Your name and/or address is incorrect.

 Your social security number is incorrect or not

shown in the space provided.

 You failed to attach all of your withholding state-

ments (W-2 Forms).

 You failed to attach one or more of the support-

ing schedules.

 You made an error in figuring your return.

 You mailed your return to the wrong address.

 You filed more than one return.

 You submitted a copy instead of the original

return.

 You have not paid all taxes due for a prior year.

 The Department needs additional information to

explain the income or deductions reported on

your return.

 The Alabama Department of Human Re sources

has notified the Alabama Department of Rev-

enue that your account is delinquent on a debt

repayment, or any public assistance program (in-

cluding the Child Support Act of 1979, Chapter

10, Title 38). Note: See Setoff Debt Collection

on page 15 for further information.

 Your return was not properly signed.

If you are due a refund and discover, after mail-

ing your return, that you failed to attach your with-

holding statement(s) or supporting sched ule(s) to

your return, do not mail this information until the De-

partment requests it. If you mail it before the De-

partment notifies you, your refund may be further

delayed.

The Department requests that you wait 90 days

before inquiring about your refund. If you do not

receive it within 90 days, go to www.revenue.

alabama.gov, click on “Where’s My Refund,” or

complete Form IT:489. This form may be obtained

from the Department’s website under the Forms link

or from any of our Alabama Taxpayer Service Cen-

ters listed on page 3 of this booklet. If you find it nec-

essary to call about your refund, you should have a

copy of your return in front of you.

SECTION

Instructions to

5Schedules for

Form 40NR

Instructions For

Schedule A

Itemized Deductions

Changes You Should Note

The itemized deductions you may claim on your

Alabama return are similar to the deductions allowed

for federal purposes; however, certain items may be

treated differently. Please see the instructions which

follow for an explanation of these differences.

Purpose of Schedule

Some taxpayers should itemize their deductions

because they will save money. See Itemized or

Standard Deduction on page 8.

If you itemize, you can deduct part of your med-

ical and dental expenses, certain taxes, contribu-

tions, and certain miscellaneous deductions. A

nonresident of Alabama must prorate these de-

ductions by the ratio of Alabama adjusted gross

income to total adjusted gross income from all

sources. Unreimbursed business expenses may be

deducted if the business expenses were incurred

while earning Alabama income.

Married, Filing Separate Returns. If married

and filing separate returns, both spouses must claim

the same deduction unless the spouses have lived

apart for the entire year, in which case each spouse

may claim either deduction. However, neither

spouse may claim a deduction for expenses paid by

the other

Part-Year Residents and Part-Year Non resi-

dents. If you were a resident of Alabama for a part

of 2021 and you are required to file Form 40, you

may claim only the itemized deductions you actu-

ally paid while a resident of Alabama.

If you had income from Alabama sources during

the period you were not a resident of Alabama you

should also file Form 40NR. You should claim on

your nonresident return only the itemized deductions

actually paid during the period you were a

nonresident.

Lines 1 through 4

Medical and Dental Expenses

Before you can figure your total medical and den-

tal expenses, you must complete your Form 40NR,

page 1, lines 1-12.

Medical and dental expenses are allowed as

itemized deductions to the same extent as allowed

for federal purposes with the following exception:

 You may deduct only that part of your medical

and dental expenses that is more than 4% of the

amount on Form 40NR, line 12, Column B.

Do not include in medical and dental expenses

insurance premiums paid by an employer-sponsored

health insurance plan (cafeteria plan). You can

deduct self-employment health insurance premiums

to the same extent as federal purposes.

Line 1

Enter the total of your medical and dental ex-

penses after reducing these expenses by any pay-

ments received from insurance or other sources.

Include amounts you paid for doctors, dentists,

nurses, hospitals, prescription medicines and drugs,

or insulin. Also, include the total amount you paid for

insurance premiums for medical and dental care,

amounts paid for transportation and lodging, and

other expenses such as hearing aids, dentures, eye-

glasses, and contact lenses.

If your insurance company paid your doctor or

dentist directly for part of your medical expenses, and

you paid only the amount that remained, include in

your medical expenses ONLY the amount you paid.

If you received a reimbursement in 2021 of prior

year medical or dental expenses, do not reduce your

2021 expenses by this amount. You must include

the reimbursement in income on Form 40NR, page

2, Part I, line 8 if you deducted the medical expense

in the earlier year and the deduction reduced your

tax. Federal Pub. 502 tells you how to figure the

amount to include in income.

When figuring the deduction, you may include

medical and dental bills you paid for:

 Yourself.

 Your spouse.

 All dependents claimed on your return.

 Your child whom you do not claim as a depend-

ent because of the federal rules explained for

Children of Divorced or Separated Parents.

Examples of Medical and Dental Pay-

ments You CAN Deduct

To the extent you were not reimbursed, you can

deduct what you paid for:

 Medicare Part B insurance.

 Prescription medicines and drugs, or insulin.

 Premiums paid to private insurers for additional

Medicare coverage.

 Medical doctors, dentists, eye doctors, chiro-

practors, osteopaths, podiatrists, psychiatrists,

psychologists, physical therapists, acupunctur-

ists, and psychoanalysts (medical care only).

 Medical examinations, X-ray and laboratory serv-

ices, insulin treatment, and whirlpool baths the

doctor ordered.

 If you pay someone to do both nursing and

housework, you can deduct only the cost of the

nursing help.

 Hospital care (including meals and lodging), clinic

costs, and lab fees.

 Medical treatment at a center for drug addicts or

alcoholics.

 Cost of a weight-loss program for the purpose of

treating diagnosed obesity or another recognized

disease. Cost must be out-of-pocket and un-

compensated.

 Medical aids such as hearing aid batteries,

braces, crutches, wheelchairs, guide dogs, and

the cost of maintaining them.

 Lodging expenses (but not meals) paid while

away from home to receive medical care in a

hospital or a medical care facility that is related to

a hospital. Do not include more than $50 a night

for each eligible person.

 Ambulance service and other travel costs to get

medical care. If you used your own car, you can

claim what you spent for gas and oil to go to and

from the place you received medical care, or you

can claim the federal mileage rate. Add parking

and tolls to the amount you claim under either

method.

Examples of Medical and Dental

Payments You CANNOT Deduct

 Premiums paid by an employer-sponsored health

insurance plan (cafeteria plan).

 The basic cost of Medicare Insurance (Medi care

A). Note: If you were 65 or older but not entitled

to social security benefits, you may deduct pre-

miums you voluntarily paid for Medicare A

coverage.

 Life insurance or income protection policies.

 The 1.45% Medicare (hospital insurance bene-

fits) tax withheld from your pay as part of the So-

cial Security tax, or the Medicare tax paid as part

of social security self-employment tax.

 Nursing care for a healthy baby.

 Illegal operations or drugs.

 Nonprescription medicines or drugs.

 Travel your doctor told you to take for rest or

change.

 Funeral, burial, or cremation costs.

Federal Pub. 502 has a discussion of expenses

that may and may not be deducted. It also explains

when you may deduct capital expenditures and spe-

cial care for handicapped persons.

Lines 5 through 9

Taxes (Other than Federal

Income Tax) You CAN Deduct

If deductions are itemized, you CAN DEDUCT

the following taxes:

 Real estate taxes (line 5). Include taxes you paid

on property you own in any state that was not

used for business. If you pay real estate taxes as

part of your mortgage payments do not take a

deduction for that amount. Deduct the taxes in

the year the mortgage company actually paid

them to the taxing authority.

 FICA tax (Social Security and Medicare) (line

6). You can deduct the FICA tax (Social Security

and Medicare) withheld on your income by your

employer. If you worked for more than one em-

ployer resulting in more than the maximum FICA

tax being withheld, the excess amount claimed

as Federal Income Tax Withheld on your federal

return cannot be claimed as an itemized deduc-

tion on your Alabama return.

 Federal Self-Employment Taxes (line 6). You

can deduct the Federal Self-Employment Tax

you paid during the year 2021 for the tax year

2020 and/or prior years.

 Railroad Retirement Tax (line 7). You can

deduct the railroad retirement tax you paid in

2021. Only your contribution to tier one railroad

retirement is deductible as an itemized

deduction.

 Other taxes (line 8). In addition to the above

taxes, you can also deduct:

(a) City, County, and Occupational Tax, as

shown on your W-2.

(b) State Unemployment Insurance Tax (S.U.I.).

Employees were not required to pay S.U.I.

Tax in 2021 since the full amount was paid by

their employer. However, if S.U.I. Tax was

paid to a state other than Alabama, it may be

deducted.

ductible only if you are the person making

the gift and you paid the tax. (The person re-

ceiving the gift cannot claim this deduction

even though he paid the tax.)

(d) Personal property taxes. This tax must be

based on the value alone. For example, if

part of the fee you paid for the registration of

your car was based on the car’s value and

part was based on its weight, you can deduct

only the part based on value.

(e) Generation-Skipping Transfer (GST) taxes.

Generation-Skipping transfer taxes imposed

on income distributions by 26 U.S.C. 2601

are deductible if you paid or accrued the

taxes within the taxable year.

Taxes You CANNOT Deduct

include but are not limited to

 State income taxes. If you owe taxes to the State

of Alabama, you may be entitled to a credit

against the taxes you owe to the state of which

you are a legal resident. See instructions for that

state.

 State and local sales taxes.

 Income tax you paid to a foreign country.

 Taxes you paid for another person.

 License fees (marriage, driver’s, dog, hunting,

pistol, etc.).

 Civil Service Retirement contributions (State or

Federal).

 Federal excise tax on personal property, trans-

portation, telephone, and gasoline.

 Customs duties.

 Gasoline tax.

 State utility taxes.

 Tax on liquor, beer, wine, cigarettes, and

tobacco.

 Car inspection fees.

 Taxes you paid for your business or profession.

(Use Schedule C, E, or F to deduct these busi-

ness expenses.)

 Assessments for sidewalks or other im prove-

ments to your property.

Lines 10a through 14

Interest You Paid

The interest you paid that can be claimed as an

itemized deduction is limited in most cases to the

same amount as currently allowable for federal

purposes.

You should show on Schedule A interest you

paid on nonbusiness items only. Whether your in-

terest expense is treated as investment interest, per-

sonal interest, or business interest depends on how

and when you used the loan proceeds.

Note: Personal interest is no longer deductible.

Complete and attach Alabama Form 4952A if

you are claiming investment interest as an itemized

deduction.

If you qualify for the mortgage interest credit on

your federal return, the total interest you paid (be-

fore the credit) is deductible for Alabama purposes.

For further information describing the interest

you may deduct, refer to federal instructions and

publications.

Lines 15 through 18

Gifts to Charity

Contributions are allowable as itemized deduc-

tions to the same extent as currently allowed for fed-

eral purposes. However, when determining any

limitations, you must use adjusted gross income

from Column B, line 12.

You can deduct what you gave to organizations

that are religious, charitable, educational, scientific,

or literary in purpose. You can also deduct what you

gave to organizations that work to prevent cruelty to

children or animals.

Note: See Federal Pub. 526 for more information

Examples of these organizations are

 Churches, temples, synagogues, Salvation

Army, Red Cross, CARE, Goodwill Industries,

United Way, Boy Scouts, Girl Scouts, Boys and

Girls Clubs of America, etc.

 Fraternal orders if the gifts will be used for the

purposes listed above.

 Veteran’s and certain cultural groups.

 Nonprofit schools, hospitals, and organizations

with the purpose of finding a cure for or helping

people who have arthritis, asthma, birth defects,

cancer, cerebral palsy, cystic fibrosis, diabetes,

heart disease, hemophilia, mental illness or re-

tardation, multiple sclerosis, muscular dystrophy,

tuberculosis, etc.

 Federal, state, and local governments if the gifts

are solely for public purposes.

If you contributed to a charitable organization

and also received a benefit from it, you can deduct

only the amount that is more than the benefit you re-

ceived. If you do not know whether you can deduct

what you gave to an organization, check with that

organization or with the IRS.

Contributions You MAY Deduct

Contributions may be in cash (keep canceled

checks, receipts, or other reliable written records

showing the name of the organization and the date

and amount given,) property, or out-of-pocket ex-

penses you paid to do volunteer work for the kinds

of organizations described above. If you drove to

and from the volunteer work, you may take 14 cents

a mile or the actual cost of gas and oil. Add parking

and tolls to the amount you claim under either

method. (But don’t deduct any amounts that were

repaid to you.)

You MAY NOT Deduct as

Contributions

 Travel expenses (including meals and lodging)

while away from home unless there was no sig-

nificant element of personal pleasure, recreation,

or vacation in the travel.

 Political contributions.

 Dues, fees, or bills paid to country clubs, lodges,

fraternal orders, or similar groups.

 Value of any benefit, such as food, entertain-

ment, or merchandise that you received in con-

nection with a contribution to a charitable

or gan i zation.

Example. You paid $100 to a charitable organi-

zation to attend a fundraising dinner. To figure the

amount of your deductible charitable contribution,

subtract the value of the dinner from the total amount

you paid. If the value of the dinner was $40, your de-

ductible contribution is $60.

 Cost of raffle, bingo, or lottery tickets.

 Cost of tuition.

 Value of your time or services.

 Value of blood given to a blood bank.

 The transfer of a future interest in tangible per-

sonal property (generally, until the entire interest

has been transferred.)

 Gifts to:

a. Individuals.

b. Foreign organizations.

c. Groups that are run for personal profit.

d. Groups with the purpose of lobbying for

changes in the laws.

e. Civic leagues, social and sports clubs, labor

unions, and chambers of commerce.

Record Keeping. If you gave property, you

should keep a receipt or written statement from the

organization you gave the property to, or a reliable

written record that shows the organization’s name

and address, the date and location of the gift, and a

description of the property. You should also keep re-

liable written records for each gift of property that in-

clude the following information:

a. How you figured the property’s value at the

time it was given. (If the value was determined by

an appraisal, you should also keep a signed copy of

the appraisal.)

b. The cost or other basis of the property if you

must reduce it by any ordinary income or capital gain

that would have resulted if the property had been

sold at its fair market value.

c. How you figured your deduction if you chose

to reduce your deduction for gifts of capital gain

property.

d. Any conditions attached to the gift.

Note: If your total deduction for gifts of property is

over $500, or if you gave less than your entire inter-

est in the property, or you made a “qualified conser-

vation contribution” under Federal Section 170(h),

your records should contain additional information.

See Federal Pub. 526 for details.

Line 15

Enter the total contributions you made in cash or

by check (including out-of-pocket expenses).

Line 16

Enter the contributions of property. If you gave

used items such as clothing or furniture, deduct their

fair market value at the time you gave them. Fair

market value is what a willing buyer would pay a will-

ing seller when neither has to buy or sell and both

are aware of the conditions of the sale. If the amount

of your deduction is more than $500, you must com-

plete and attach Federal Form 8283, Noncash

Charitable Contributions. If your total deduction is

over $5,000, you may also need appraisals of the

values of the donated property. For this purpose, the

“amount of your deduction” means your deduction

BEFORE applying any income limitations that could

result in a carryover of contributions. See Federal

Form 8283 and its instructions for details.

Line 17

Enter any carryover of contributions that you

were unable to deduct in an earlier year because it

exceeded your adjusted gross income limit.

Line 19

Qualified Long-term Care Coverage

Premiums paid pursuant to a qualifying insur-

ance contract for qualified long term care coverage

paid by the taxpayer may be deducted on line 19.

Qualified long-term care services include care for

necessary diagnostic, preventive, therapeutic, and

rehabilitative services and maintenance or personal

care services which are required by a chronically ill

individual in a qualified facility or services which are

provided pursuant to a place of care prescribed by a

licensed health care practitioner.

Line 20

Miscellaneous Deductions

Expenses NOT Subject to the 2%

Limit

Most miscellaneous deductions cannot be de-

ducted in full, but must be reduced by 2% of the Ala-

bama adjusted gross income. The deductions which

may be claimed on line 20 that are NOT subject to

the 2% limit are as follows:

 Gambling losses to the extent of gambling win-

nings. Report gambling winnings on Form 40NR,

page 2, Part I, line 8.

 Unrecovered investment in a pension.

 Impairment-related work expenses of a disabled

person.

List the type and amount of each expense. Enter

one total in the amount space for line 20.

Line 21

Proration of Above Amounts

The amounts shown in lines 1 through 20 should

be the amounts for the entire period that the return

covers. In most cases, these amounts will be the

same as shown on your Federal return. Follow the

instructions on lines 21 through 23 to determine the

portion of these expenses that apply to your Ala-

bama income.

Lines 24a, b, and c

Casualty and Theft Losses

A casualty or theft loss is determined in the same

manner as determined on your federal return with

the following exceptions:

 A nonresident of Alabama may deduct only

those losses where the property was located

in Alabama at the time of loss.

 The loss may be claimed only in the year during

which the loss occurred or the theft was

discovered.

 The loss on personal property must be reduced

by 10% of the Alabama adjusted gross income

as shown on Form 40NR, page 1, line 12, col-

umn C.

Use lines 24a, b, and c to report casualty or theft

losses of Alabama property that is not a trade or

business, income-producing, or rent or royalty prop-

erty. Complete and attach Federal Form 4684 to fig-

ure your loss. Enter on line 24a of Alabama

Schedule A the amount of loss as shown on Section

A line 15 or line 16 of Form 4684.

Losses You MAY Deduct

You may be able to deduct all or part of each loss

caused by theft, vandalism, fire, storm, and car,

boat, and other accidents or similar causes. You

may also be able to deduct money you had in a fi-

nancial institution but lost because of the insolvency

or bankruptcy of the institution.

You may deduct nonbusiness casualty or theft

losses only to the extent that:

a. the amount of EACH separate casualty or theft

loss is more than $100, and

b. the total amount of ALL Alabama losses dur-

ing the year is more than 10% of your adjusted gross

income on Form 40NR, page 1, line 12, column C.

Special rules apply if you had both gains and

losses from nonbusiness casualties or thefts. Get

Federal Form 4684 for details.

Losses You MAY NOT Deduct

 Money or property misplaced or lost.

 Breakage of china, glassware, furniture, and

similar items under normal conditions.

 Progressive damage to property (buildings,

clothes, trees, etc.) caused by termites, moths, other

insects, or disease.

Use Schedule A line 26 to deduct the costs of

proving that you had a property loss. (Examples of

these costs are appraisal fees and photographs

used to establish the amount of your loss.)

For more details, refer to federal instructions and

publications.

Lines 25 through 29

Miscellaneous Deductions

Expenses Subject to the 2% Limit

Most miscellaneous deductions cannot be de-

ducted in full. You must subtract 2% of your Ala-

bama adjusted gross income from the total. You

figure the 2% limit on line 28.

A nonresident of Alabama should show on lines

25 through 29 only those expenses incurred in earn-

ing Alabama income.

Generally, the 2% limit applies to job expenses

you paid for which you were not reimbursed (line

25). The limit also applies to certain expenses you

paid to produce or collect taxable income (line 26).

See the instructions for lines 25 and 26 for exam-

ples of expenses to deduct on these lines.

The 2% limit does not apply to certain other mis-

cellaneous expenses that you may deduct. See the

instructions for line 20 for examples of these

expenses.

Line 25

Use this line to report Alabama job expenses you

paid for which you were not reimbursed. In some

cases, you must first fill out Federal Form 2106,

Employee Business Expenses. Fill out Form 2106

if:

1. You claim any travel, transportation, or meal

expenses for your job; OR

2. Your employer paid you for any of your job ex-

penses reportable on line 25.

If 1 or 2 above applies, enter the net deductible

amount from Federal Form 2106 on line 25 of

Schedule A.

Caution: Federal Form 2106 must be adjusted to

include only job expenses related to your Alabama

source income.

If you do not have to fill out Form 2106, just list

the type and amount of your expenses on the space

provided on line 25. If you need more space, attach

a statement showing the type and amount of the ex-

pense. Enter one total in the amount space on line

25.

Examples of expenses to include on line 25 are:

 Travel, transportation, or meal expense. (Note: If

you have any of these expenses, you must use

Federal Form 2106 for all your job expenses.)

 Union dues.

 Safety equipment, small tools, and supplies you

used in your job.

 Uniforms your employer said you must have and

which you may not usually wear away from work.

 Protective clothing required in your work such as

hard hats, safety shoes, and glasses.

 Physical examinations your employer said you

must have.

 Dues to professional organizations and cham-

bers of commerce.

 Subscriptions to professional journals.

 Fees to employment agencies and job search ex-

penses in your present occupation.

 Education expenses you paid that were required

by your employer, or by law or regulations, to

keep your salary or job. In general, you may in-

clude the cost of keeping or improving skills you

must have in your job. For more details, see Fed-

eral Pub. 508, Educational Expenses. Some ed-

ucational expenses are not deductible. See

Expenses You MAY NOT Deduct.

 Business use of part of your home, but ONLY if

you use that part exclusively and on a regular

basis in your work and for the convenience of

your employer. For details, including limits that

apply, see Federal Pub. 587, Business Use of

Your Home.

 Deduction for repayment of amounts under a

claim of right if $3,000 or less.

Line 26

Use this line for amounts you paid for the pro-

duction or collection of taxable income; for the man-

agement, conservation, or maintenance of property

held for the production of taxable income; or in con-

nection with the determination, collection, or refund

of any tax. List the type and amount of each expense

in the space provided on line 26. If you need more

space, attach a statement showing the type and

amount of each expense. Enter one total in the

amount space for line 26. Examples of these ex-

penses are:

 Tax return preparation fee.

 Safe deposit box rental.

 Certain legal and accounting fees.

 Clerical help and office rent.

 Custodial (e.g., trust account) fees.

 Your share of the investment expenses of a reg-

ulated investment company.

 Certain losses on nonfederally insured deposits

in an insolvent or bankrupt financial institution.

For more information (including limits on the

amount you can deduct).

Expenses You MAY NOT Deduct

Some expenses are not deductible at all. Exam-

ples are:

 Political contributions.

 Personal legal expenses.

 Lost or misplaced cash or property (but see Ca-

sualty and Theft Losses.)

 Expenses for meals during regular or extra work

hours.

 The cost of entertaining friends.

 Expenses of going to or from work.

 Education that you need to meet minimum re-

quirements for your job or that will qualify you for

a new occupation.

 Expenses of:

a. Travel as a form of education.

b. Attending a seminar, convention, or similar

meeting unless it is related to your

employment.

 Fines and penalties.

Note: Excess deductions from decedent’s estate and

irrevocable trust cannot be claimed. See Code of

Alabama 40-18-25(4)

Instructions For

Schedule B

Interest and Dividend Income

Purpose of Schedule

Use Schedule B if you are filing Form 40NR and

had more than $1,500 in interest and dividend in-

come in 2021.

Mutual Fund. If you received a 1099-DIV, or

1099-INT, or Substitute Statement from a mutual

fund or brokerage firm, you must include the total in-

terest or dividends shown on that form on Schedule

B, line 1.

Nonresidents are required to report interest or

dividend income with an Alabama business legal ju-

risdiction in Schedule B, Column C (Regulation 810-

3-14-.05). All other personal interest or dividend

income received in 2021 that would be taxable to a

resident of Alabama should be included in the total

adjusted gross income from all sources.

Line 1

Report on line 1 the total interest and dividends

you received in 2021. This does not include interest

reported on your Schedule K-1.

Lines 2 and 3

A resident of Alabama is not taxed on interest re-

ceived from the following sources:

1. Obligations of the United States or any of its

possessions.

2. Obligations of the State of Alabama.

3. Obligations of county, municipality or other

subdivision of Alabama.

If you received income from any of these

sources, list the source and amount(s) on lines 2a

through 2d. Add the amounts on these lines and

enter the total on line 3.

Instructions For

Schedule D

Gain or (Loss) From Sale of

Real Estate, Stocks, Bonds, Etc.

Purpose of Schedule

Use Schedule D (Form 40NR) to report the sale

or exchange of real estate, stocks, bonds, and other

assets.

Mutual Fund. If you received a mutual fund or

brokerage statement reporting capital or ordinary

gains, you must include these amounts on Schedule

D, on line 1.

The gain or profit from any sale, exchange, or

other disposition by a nonresident of real or tangible

property located in Alabama is taxable even though

it is not connected with a business carried on in this

state.

The gain or (loss) realized from the disposition

of property located outside of Alabama is not tax-

able to a nonresident, but the gain or (loss) must be

included in the total adjusted gross income from all

sources in order to compute the ratio of Alabama ad-

justed gross income to total adjusted gross income

from all sources.

The gain or profit of a nonresident from the sale,

exchange, or other disposition of intangible personal

property including stocks, bonds, and other securi-

ties, is ordinarily not taxable and should not be in-

cluded in gross income except to the extent that

such intangible personal property has acquired a

business legal jurisdiction in Alabama. Likewise,

losses sustained from the sale, ex change, or other

disposition of such property are not deductible ex-

cept to the extent that they are losses incurred in a

business carried on within Alabama by the nonresi-

dent taxpayer.

Gain from Sale of Personal Residence. If you

sold your personal residence, any gain realized is

taxable to the same extent as reported on your fed-

eral return. If the personal residence was not located

in Alabama, the gain should be reported in Column

B only. If the personal residence was located in Ala-

bama, the gain should be reported in Columns B and

C. A loss sustained on the sale of a personal resi-

dence is NOT deductible.

If a taxpayer elects to determine gain under 26

USC 1033 (relating to involuntary conversions), the

amount of gain recognized for Alabama purposes

shall be determined in accordance with the same

federal statute.

Line 1

Enter on line 1, the total gain or (loss) from the

sale of all assets not subject to Alabama tax.

Line 2

The gain from the sale of all Alabama assets

should be reported in detail in Columns a through f.

If more space is needed, use separate sheets with

identical Column headings.

Instructions For

Schedule E

Supplemental Income

Part I Lines 1 through 5

Rents and Royalties

If you received rent from property owned or con-

trolled by you, or royalties from copyrights, mineral

leases and similar rights, report the total amount re-

ceived on Schedule E lines 1 through 5. If property

other than cash was received as rent, its fair market

value should be reported.

A reasonable allowance for the exhaustion, wear

and tear, and obsolescence of property used in a

trade or business, or of property held by the taxpayer

for the production of income, shall be allowable as a

depreciation deduction. The allowance does not

apply to inventories or stock-in-trade nor to land

apart from the improvements or physical develop-

ment added to it. Federal 179 Depreciation Expense

allowed by 26 U.S.C §179 is allowable depreciation

for Alabama purposes.

The total net gain from all rents and royalties

from sources outside Alabama should be shown on

line 1. Income from rents and royalties from prop-

erty located in Alabama should be detailed in

Columns 2a through 2e. If more space is needed,

use separate sheets with identical column headings.

The net gain or (loss) from all items listed in lines

1 through 4 should be entered on line 5.

Part II Lines 6 and 7

Partnerships, Estates, Trusts,

S Corporations

Use lines 6 and 7 to report income you re ceived

from partnerships, estates, trusts, and S corpora-

tions. Alabama taxes income from these sources

only to the extent the income was earned in

Alabama.

List the income you received from these sources

on lines 6a through 6c. Show the name, address,

and FEIN of each partnership, estate, trust, etc. Re-

port the total income received from these sources in

Column B and only the income earned from Ala-

bama sources in Column C.

Partnerships. If you are a partner of a partner-

ship doing business in Alabama, you should receive

an Alabama Schedule K-1 Form 65 from the part-

nership. Report your share of the income (whether

you received it or not) or net loss (not to exceed

your basis) of the partnership in Part II. A nonresi-

dent must pay tax on his share of Alabama income

from the partnership.

Beginning with the 2001 tax year, Alabama law

required composite filing for all partnerships with

nonresident members. In addition to reporting your

share of the partnership’s profit or loss on Alabama

Schedule E, any composite payments made on your

behalf should be shown on Schedule CP. Sched-

ule CP, Section B, line 1 will be entered on Form

40NR, page 1, line 23.

Estates and Trusts. Nonresidents are taxed on

income from estates and trusts only to the extent

that the income was earned in Alabama. The ad-

ministrator, executor, or trustee should advise you

of the amount to report.

S Corporations. An “Alabama S Corporation”

means any domestic corporation or foreign corpo-

ration qualified to do business or doing business in

Alabama which has in effect an election to be an S

corporation under 26 U.S.C. Section 1362.

If you are a shareholder of an Alabama S corpo-

ration, you should receive an Alabama Schedule

K-1 (Form 20S) from the S corporation. Report your

share of the income (whether you received it or not)

or net loss (not to exceed your basis) of the cor-

poration in Part II. A nonresident must pay tax on

his share of an Alabama S corporation’s income.

If you claim credit for taxes paid by an S cor po-

ra tion on your behalf, enter this amount on Schedule

CP. Schedule CP, Section B, line 1 will be entered

on Form 40NR, page 1, line 23.

The net gain or (loss) from all items listed in lines

6a through 6c should be entered on line 7. Also in-

clude these amounts in summary on line 8 of Part

III. See Schedule K-1 65 and Schedule K-1 20S in-

structions for more information.

Note: A loss from an irrevocable trust cannot be

claimed on Schedule E part II. See administrative

rule 810-3-25-.05(8)(b)

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

Under $1,000

05000

50 100 1 1

100 200 3 3

200 300 5 5

300 400 7 7

400 500 9 9

500 600 12 11

600 700 16 13

700 800 20 15

800 900 24 17

900 1,000 28 19

1,000

1,000 1,100 32 22

1,100 1,200 36 26

1,200 1,300 40 30

1,300 1,400 44 34

1,400 1,500 48 38

1,500 1,600 52 42

1,600 1,700 56 46

1,700 1,800 60 50

1,800 1,900 64 54

1,900 2,000 68 58

2,000

2,000 2,100 72 62

2,100 2,200 76 66

2,200 2,300 80 70

2,300 2,400 84 74

2,400 2,500 88 78

2,500 2,600 92 82

2,600 2,700 96 86

2,700 2,800 100 90

2,800 2,900 104 94

2,900 3,000 108 98

3,000

3,000 3,100 113 102

3,100 3,200 118 106

3,200 3,300 123 110

3,300 3,400 128 114

3,400 3,500 133 118

3,500 3,600 138 122

3,600 3,700 143 126

3,700 3,800 148 130

3,800 3,900 153 134

3,900 4,000 158 138

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

4,000

4,000 4,100 163 142

4,100 4,200 168 146

4,200 4,300 173 150

4,300 4,400 178 154

4,400 4,500 183 158

4,500 4,600 188 162

4,600 4,700 193 166

4,700 4,800 198 170

4,800 4,900 203 174

4,900 5,000 208 178

5,000

5,000 5,100 213 182

5,100 5,200 218 186

5,200 5,300 223 190

5,300 5,400 228 194

5,400 5,500 233 198

5,500 5,600 238 202

5,600 5,700 243 206

5,700 5,800 248 210

5,800 5,900 253 214

5,900 6,000 258 218

6,000

6,000 6,100 263 223

6,100 6,200 268 228

6,200 6,300 273 233

6,300 6,400 278 238

6,400 6,500 283 243

6,500 6,600 288 248

6,600 6,700 293 253

6,700 6,800 298 258

6,800 6,900 303 263

6,900 7,000 308 268

7,000

7,000 7,100 313 273

7,100 7,200 318 278

7,200 7,300 323 283

7,300 7,400 328 288

7,400 7,500 333 293

7,500 7,600 338 298

7,600 7,700 343 303

7,700 7,800 348 308

7,800 7,900 353 313

7,900 8,000 358 318

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

8,000

8,000 8,100 363 323

8,100 8,200 368 328

8,200 8,300 373 333

8,300 8,400 378 338

8,400 8,500 383 343

8,500 8,600 388 348

8,600 8,700 393 353

8,700 8,800 398 358

8,800 8,900 403 363

8,900 9,000 408 368

9,000

9,000 9,100 413 373

9,100 9,200 418 378

9,200 9,300 423 383

9,300 9,400 428 388

9,400 9,500 433 393

9,500 9,600 438 398

9,600 9,700 443 403

9,700 9,800 448 408

9,800 9,900 453 413

9,900 10,000 458 418

10,000

10,000 10,100 463 423

10,100 10,200 468 428

10,200 10,300 473 433

10,300 10,400 478 438

10,400 10,500 483 443

10,500 10,600 488 448

10,600 10,700 493 453

10,700 10,800 498 458

10,800 10,900 503 463

10,900 11,000 508 468

11,000

11,000 11,100 513 473

11,100 11,200 518 478

11,200 11,300 523 483

11,300 11,400 528 488

11,400 11,500 533 493

11,500 11,600 538 498

11,600 11,700 543 503

11,700 11,800 548 508

11,800 11,900 553 513

11,900 12,000 558 518

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

12,000

12,000 12,100 563 523

12,100 12,200 568 528

12,200 12,300 573 533

12,300 12,400 578 538

12,400 12,500 583 543

12,500 12,600 588 548

12,600 12,700 593 553

12,700 12,800 598 558

12,800 12,900 603 563

12,900 13,000 608 568

13,000

13,000 13,100 613 573

13,100 13,200 618 578

13,200 13,300 623 583

13,300 13,400 628 588

13,400 13,500 633 593

13,500 13,600 638 598

13,600 13,700 643 603

13,700 13,800 648 608

13,800 13,900 653 613

13,900 14,000 658 618

14,000

14,000 14,100 663 623

14,100 14,200 668 628

14,200 14,300 673 633

14,300 14,400 678 638

14,400 14,500 683 643

14,500 14,600 688 648

14,600 14,700 693 653

14,700 14,800 698 658

14,800 14,900 703 663

14,900 15,000 708 668

15,000

15,000 15,100 713 673

15,100 15,200 718 678

15,200 15,300 723 683

15,300 15,400 728 688

15,400 15,500 733 693

15,500 15,600 738 698

15,600 15,700 743 703

15,700 15,800 748 708

15,800 15,900 753 713

15,900 16,000 758 718

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is—

$23,000

23,000 23,100 1,113 1,073

23,100 23,200 1,118 1,078

23,200 23,300 1,123 1,083

23,300 23,400 1,128 1,088

23,400 23,500 1,133 1,093

EXAMPLE:

Mr. and Mrs. Brown are filing a joint return and

checked box 2 on their return. Their taxable income

on line 18 of Form 40NR is $23,360. First, they find

the $23,300 - $23,400 income line. Next, they find

the column for married filing jointly and read down

the column. The amount shown where the income

line and the filing status column meet is $1,088. This

is the amount they must write on line 19 of Form

40NR.

Tax Table

(Form 40NR)

Based on Taxable Income

This tax table is based on the taxable income

shown on line 18 of Form 40NR and the filing

status you checked on lines 1, 2, 3, or 4 of your

return.

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

16,000

16,000 16,100 763 723

16,100 16,200 768 728

16,200 16,300 773 733

16,300 16,400 778 738

16,400 16,500 783 743

16,500 16,600 788 748

16,600 16,700 793 753

16,700 16,800 798 758

16,800 16,900 803 763

16,900 17,000 808 768

17,000

17,000 17,100 813 773

17,100 17,200 818 778

17,200 17,300 823 783

17,300 17,400 828 788

17,400 17,500 833 793

17,500 17,600 838 798

17,600 17,700 843 803

17,700 17,800 848 808

17,800 17,900 853 813

17,900 18,000 858 818

18,000

18,000 18,100 863 823

18,100 18,200 868 828

18,200 18,300 873 833

18,300 18,400 878 838

18,400 18,500 883 843

18,500 18,600 888 848

18,600 18,700 893 853

18,700 18,800 898 858

18,800 18,900 903 863

18,900 19,000 908 868

19,000

19,000 19,100 913 873

19,100 19,200 918 878

19,200 19,300 923 883

19,300 19,400 928 888

19,400 19,500 933 893

19,500 19,600 938 898

19,600 19,700 943 903

19,700 19,800 948 908

19,800 19,900 953 913

19,900 20,000 958 918

20,000

20,000 20,100 963 923

20,100 20,200 968 928

20,200 20,300 973 933

20,300 20,400 978 938

20,400 20,500 983 943

20,500 20,600 988 948

20,600 20,700 993 953

20,700 20,800 998 958

20,800 20,900 1,003 963

20,900 21,000 1,008 968

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

21,000

21,000 21,100 1,013 973

21,100 21,200 1,018 978

21,200 21,300 1,023 983

21,300 21,400 1,028 988

21,400 21,500 1,033 993

21,500 21,600 1,038 998

21,600 21,700 1,043 1,003

21,700 21,800 1,048 1,008

21,800 21,900 1,053 1,013

21,900 22,000 1,058 1,018

22,000

22,000 22,100 1,063 1,023

22,100 22,200 1,068 1,028

22,200 22,300 1,073 1,033

22,300 22,400 1,078 1,038

22,400 22,500 1,083 1,043

22,500 22,600 1,088 1,048

22,600 22,700 1,093 1,053

22,700 22,800 1,098 1,058

22,800 22,900 1,103 1,063

22,900 23,000 1,108 1,068

23,000

23,000 23,100 1,113 1,073

23,100 23,200 1,118 1,078

23,200 23,300 1,123 1,083

23,300 23,400 1,128 1,088

23,400 23,500 1,133 1,093

23,500 23,600 1,138 1,098

23,600 23,700 1,143 1,103

23,700 23,800 1,148 1,108

23,800 23,900 1,153 1,113

23,900 24,000 1,158 1,118

24,000

24,000 24,100 1,163 1,123

24,100 24,200 1,168 1,128

24,200 24,300 1,173 1,133

24,300 24,400 1,178 1,138

24,400 24,500 1,183 1,143

24,500 24,600 1,188 1,148

24,600 24,700 1,193 1,153

24,700 24,800 1,198 1,158

24,800 24,900 1,203 1,163

24,900 25,000 1,208 1,168

25,000

25,000 25,100 1,213 1,173

25,100 25,200 1,218 1,178

25,200 25,300 1,223 1,183

25,300 25,400 1,228 1,188

25,400 25,500 1,233 1,193

25,500 25,600 1,238 1,198

25,600 25,700 1,243 1,203

25,700 25,800 1,248 1,208

25,800 25,900 1,253 1,213

25,900 26,000 1,258 1,218

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

26,000

26,000 26,100 1,263 1,223

26,100 26,200 1,268 1,228

26,200 26,300 1,273 1,233

26,300 26,400 1,278 1,238

26,400 26,500 1,283 1,243

26,500 26,600 1,288 1,248

26,600 26,700 1,293 1,253

26,700 26,800 1,298 1,258

26,800 26,900 1,303 1,263

26,900 27,000 1,308 1,268

27,000

27,000 27,100 1,313 1,273

27,100 27,200 1,318 1,278

27,200 27,300 1,323 1,283

27,300 27,400 1,328 1,288

27,400 27,500 1,333 1,293

27,500 27,600 1,338 1,298

27,600 27,700 1,343 1,303

27,700 27,800 1,348 1,308

27,800 27,900 1,353 1,313

27,900 28,000 1,358 1,318

28,000

28,000 28,100 1,363 1,323

28,100 28,200 1,368 1,328

28,200 28,300 1,373 1,333

28,300 28,400 1,378 1,338

28,400 28,500 1,383 1,343

28,500 28,600 1,388 1,348

28,600 28,700 1,393 1,353

28,700 28,800 1,398 1,358

28,800 28,900 1,403 1,363

28,900 29,000 1,408 1,368

29,000

29,000 29,100 1,413 1,373

29,100 29,200 1,418 1,378

29,200 29,300 1,423 1,383

29,300 29,400 1,428 1,388

29,400 29,500 1,433 1,393

29,500 29,600 1,438 1,398

29,600 29,700 1,443 1,403

29,700 29,800 1,448 1,408

29,800 29,900 1,453 1,413

29,900 30,000 1,458 1,418

30,000

30,000 30,100 1,463 1,423

30,100 30,200 1,468 1,428

30,200 30,300 1,473 1,433

30,300 30,400 1,478 1,438

30,400 30,500 1,483 1,443

30,500 30,600 1,488 1,448

30,600 30,700 1,493 1,453

30,700 30,800 1,498 1,458

30,800 30,900 1,503 1,463

30,900 31,000 1,508 1,468

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

31,000

31,000 31,100 1,513 1,473

31,100 31,200 1,518 1,478

31,200 31,300 1,523 1,483

31,300 31,400 1,528 1,488

31,400 31,500 1,533 1,493

31,500 31,600 1,538 1,498

31,600 31,700 1,543 1,503

31,700 31,800 1,548 1,508

31,800 31,900 1,553 1,513

31,900 32,000 1,558 1,518

32,000

32,000 32,100 1,563 1,523

32,100 32,200 1,568 1,528

32,200 32,300 1,573 1,533

32,300 32,400 1,578 1,538

32,400 32,500 1,583 1,543

32,500 32,600 1,588 1,548

32,600 32,700 1,593 1,553

32,700 32,800 1,598 1,558

32,800 32,900 1,603 1,563

32,900 33,000 1,608 1,568

33,000

33,000 33,100 1,613 1,573

33,100 33,200 1,618 1,578

33,200 33,300 1,623 1,583

33,300 33,400 1,628 1,588

33,400 33,500 1,633 1,593

33,500 33,600 1,638 1,598

33,600 33,700 1,643 1,603

33,700 33,800 1,648 1,608

33,800 33,900 1,653 1,613

33,900 34,000 1,658 1,618

34,000

34,000 34,100 1,663 1,623

34,100 34,200 1,668 1,628

34,200 34,300 1,673 1,633

34,300 34,400 1,678 1,638

34,400 34,500 1,683 1,643

34,500 34,600 1,688 1,648

34,600 34,700 1,693 1,653

34,700 34,800 1,698 1,658

34,800 34,900 1,703 1,663

34,900 35,000 1,708 1,668

35,000

35,000 35,100 1,713 1,673

35,100 35,200 1,718 1,678

35,200 35,300 1,723 1,683

35,300 35,400 1,728 1,688

35,400 35,500 1,733 1,693

35,500 35,600 1,738 1,698

35,600 35,700 1,743 1,703

35,700 35,800 1,748 1,708

35,800 35,900 1,753 1,713

35,900 36,000 1,758 1,718

Tax Table – Continued

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

36,000

36,000 36,100 1,763 1,723

36,100 36,200 1,768 1,728

36,200 36,300 1,773 1,733

36,300 36,400 1,778 1,738

36,400 36,500 1,783 1,743

36,500 36,600 1,788 1,748

36,600 36,700 1,793 1,753

36,700 36,800 1,798 1,758

36,800 36,900 1,803 1,763

36,900 37,000 1,808 1,768

37,000

37,000 37,100 1,813 1,773

37,100 37,200 1,818 1,778

37,200 37,300 1,823 1,783

37,300 37,400 1,828 1,788

37,400 37,500 1,833 1,793

37,500 37,600 1,838 1,798

37,600 37,700 1,843 1,803

37,700 37,800 1,848 1,808

37,800 37,900 1,853 1,813

37,900 38,000 1,858 1,818

38,000

38,000 38,100 1,863 1,823

38,100 38,200 1,868 1,828

38,200 38,300 1,873 1,833

38,300 38,400 1,878 1,838

38,400 38,500 1,883 1,843

38,500 38,600 1,888 1,848

38,600 38,700 1,893 1,853

38,700 38,800 1,898 1,858

38,800 38,900 1,903 1,863

38,900 39,000 1,908 1,868

39,000

39,000 39,100 1,913 1,873

39,100 39,200 1,918 1,878

39,200 39,300 1,923 1,883

39,300 39,400 1,928 1,888

39,400 39,500 1,933 1,893

39,500 39,600 1,938 1,898

39,600 39,700 1,943 1,903

39,700 39,800 1,948 1,908

39,800 39,900 1,953 1,913

39,900 40,000 1,958 1,918

40,000

40,000 40,100 1,963 1,923

40,100 40,200 1,968 1,928

40,200 40,300 1,973 1,933

40,300 40,400 1,978 1,938

40,400 40,500 1,983 1,943

40,500 40,600 1,988 1,948

40,600 40,700 1,993 1,953

40,700 40,800 1,998 1,958

40,800 40,900 2,003 1,963

40,900 41,000 2,008 1,968

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

41,000

41,000 41,100 2,013 1,973

41,100 41,200 2,018 1,978

41,200 41,300 2,023 1,983

41,300 41,400 2,028 1,988

41,400 41,500 2,033 1,993

41,500 41,600 2,038 1,998

41,600 41,700 2,043 2,003

41,700 41,800 2,048 2,008

41,800 41,900 2,053 2,013

41,900 42,000 2,058 2,018

42,000

42,000 42,100 2,063 2,023

42,100 42,200 2,068 2,028

42,200 42,300 2,073 2,033

42,300 42,400 2,078 2,038

42,400 42,500 2,083 2,043

42,500 42,600 2,088 2,048

42,600 42,700 2,093 2,053

42,700 42,800 2,098 2,058

42,800 42,900 2,103 2,063

42,900 43,000 2,108 2,068

43,000

43,000 43,100 2,113 2,073

43,100 43,200 2,118 2,078

43,200 43,300 2,123 2,083

43,300 43,400 2,128 2,088

43,400 43,500 2,133 2,093

43,500 43,600 2,138 2,098

43,600 43,700 2,143 2,103

43,700 43,800 2,148 2,108

43,800 43,900 2,153 2,113

43,900 44,000 2,158 2,118

44,000

44,000 44,100 2,163 2,123

44,100 44,200 2,168 2,128

44,200 44,300 2,173 2,133

44,300 44,400 2,178 2,138

44,400 44,500 2,183 2,143

44,500 44,600 2,188 2,148

44,600 44,700 2,193 2,153

44,700 44,800 2,198 2,158

44,800 44,900 2,203 2,163

44,900 45,000 2,208 2,168

45,000

45,000 45,100 2,213 2,173

45,100 45,200 2,218 2,178

45,200 45,300 2,223 2,183

45,300 45,400 2,228 2,188

45,400 45,500 2,233 2,193

45,500 45,600 2,238 2,198

45,600 45,700 2,243 2,203

45,700 45,800 2,248 2,208

45,800 45,900 2,253 2,213

45,900 46,000 2,258 2,218

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

46,000

46,000 46,100 2,263 2,223

46,100 46,200 2,268 2,228

46,200 46,300 2,273 2,233

46,300 46,400 2,278 2,238

46,400 46,500 2,283 2,243

46,500 46,600 2,288 2,248

46,600 46,700 2,293 2,253

46,700 46,800 2,298 2,258

46,800 46,900 2,303 2,263

46,900 47,000 2,308 2,268

47,000

47,000 47,100 2,313 2,273

47,100 47,200 2,318 2,278

47,200 47,300 2,323 2,283

47,300 47,400 2,328 2,288

47,400 47,500 2,333 2,293

47,500 47,600 2,338 2,298

47,600 47,700 2,343 2,303

47,700 47,800 2,348 2,308

47,800 47,900 2,353 2,313

47,900 48,000 2,358 2,318

48,000

48,000 48,100 2,363 2,323

48,100 48,200 2,368 2,328

48,200 48,300 2,373 2,333

48,300 48,400 2,378 2,338

48,400 48,500 2,383 2,343

48,500 48,600 2,388 2,348

48,600 48,700 2,393 2,353

48,700 48,800 2,398 2,358

48,800 48,900 2,403 2,363

48,900 49,000 2,408 2,368

49,000

49,000 49,100 2,413 2,373

49,100 49,200 2,418 2,378

49,200 49,300 2,423 2,383

49,300 49,400 2,428 2,388

49,400 49,500 2,433 2,393

49,500 49,600 2,438 2,398

49,600 49,700 2,443 2,403

49,700 49,800 2,448 2,408

49,800 49,900 2,453 2,413

49,900 50,000 2,458 2,418

50,000

50,000 50,100 2,463 2,423

50,100 50,200 2,468 2,428

50,200 50,300 2,473 2,433

50,300 50,400 2,478 2,438

50,400 50,500 2,483 2,443

50,500 50,600 2,488 2,448

50,600 50,700 2,493 2,453

50,700 50,800 2,498 2,458

50,800 50,900 2,503 2,463

50,900 51,000 2,508 2,468

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

51,000

51,000 51,100 2,513 2,473

51,100 51,200 2,518 2,478

51,200 51,300 2,523 2,483

51,300 51,400 2,528 2,488

51,400 51,500 2,533 2,493

51,500 51,600 2,538 2,498

51,600 51,700 2,543 2,503

51,700 51,800 2,548 2,508

51,800 51,900 2,553 2,513

51,900 52,000 2,558 2,518

52,000

52,000 52,100 2,563 2,523

52,100 52,200 2,568 2,528

52,200 52,300 2,573 2,533

52,300 52,400 2,578 2,538

52,400 52,500 2,583 2,543

52,500 52,600 2,588 2,548

52,600 52,700 2,593 2,553

52,700 52,800 2,598 2,558

52,800 52,900 2,603 2,563

52,900 53,000 2,608 2,568

53,000

53,000 53,100 2,613 2,573

53,100 53,200 2,618 2,578

53,200 53,300 2,623 2,583

53,300 53,400 2,628 2,588

53,400 53,500 2,633 2,593

53,500 53,600 2,638 2,598

53,600 53,700 2,643 2,603

53,700 53,800 2,648 2,608

53,800 53,900 2,653 2,613

53,900 54,000 2,658 2,618

54,000

54,000 54,100 2,663 2,623

54,100 54,200 2,668 2,628

54,200 54,300 2,673 2,633

54,300 54,400 2,678 2,638

54,400 54,500 2,683 2,643

54,500 54,600 2,688 2,648

54,600 54,700 2,693 2,653

54,700 54,800 2,698 2,658

54,800 54,900 2,703 2,663

54,900 55,000 2,708 2,668

55,000

55,000 55,100 2,713 2,673

55,100 55,200 2,718 2,678

55,200 55,300 2,723 2,683

55,300 55,400 2,728 2,688

55,400 55,500 2,733 2,693

55,500 55,600 2,738 2,698

55,600 55,700 2,743 2,703

55,700 55,800 2,748 2,708

55,800 55,900 2,753 2,713

55,900 56,000 2,758 2,718

Tax Table – Continued

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

56,000

56,000 56,100 2,763 2,723

56,100 56,200 2,768 2,728

56,200 56,300 2,773 2,733

56,300 56,400 2,778 2,738

56,400 56,500 2,783 2,743

56,500 56,600 2,788 2,748

56,600 56,700 2,793 2,753

56,700 56,800 2,798 2,758

56,800 56,900 2,803 2,763

56,900 57,000 2,808 2,768

57,000

57,000 57,100 2,813 2,773

57,100 57,200 2,818 2,778

57,200 57,300 2,823 2,783

57,300 57,400 2,828 2,788

57,400 57,500 2,833 2,793

57,500 57,600 2,838 2,798

57,600 57,700 2,843 2,803

57,700 57,800 2,848 2,808

57,800 57,900 2,853 2,813

57,900 58,000 2,858 2,818

58,000

58,000 58,100 2,863 2,823

58,100 58,200 2,868 2,828

58,200 58,300 2,873 2,833

58,300 58,400 2,878 2,838

58,400 58,500 2,883 2,843

58,500 58,600 2,888 2,848

58,600 58,700 2,893 2,853

58,700 58,800 2,898 2,858

58,800 58,900 2,903 2,863

58,900 59,000 2,908 2,868

59,000

59,000 59,100 2,913 2,873

59,100 59,200 2,918 2,878

59,200 59,300 2,923 2,883

59,300 59,400 2,928 2,888

59,400 59,500 2,933 2,893

59,500 59,600 2,938 2,898

59,600 59,700 2,943 2,903

59,700 59,800 2,948 2,908

59,800 59,900 2,953 2,913

59,900 60,000 2,958 2,918

60,000

60,000 60,100 2,963 2,923

60,100 60,200 2,968 2,928

60,200 60,300 2,973 2,933

60,300 60,400 2,978 2,938

60,400 60,500 2,983 2,943

60,500 60,600 2,988 2,948

60,600 60,700 2,993 2,953

60,700 60,800 2,998 2,958

60,800 60,900 3,003 2,963

60,900 61,000 3,008 2,968

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

61,000

61,000 61,100 3,013 2,973

61,100 61,200 3,018 2,978

61,200 61,300 3,023 2,983

61,300 61,400 3,028 2,988

61,400 61,500 3,033 2,993

61,500 61,600 3,038 2,998

61,600 61,700 3,043 3,003

61,700 61,800 3,048 3,008

61,800 61,900 3,053 3,013

61,900 62,000 3,058 3,018

62,000

62,000 62,100 3,063 3,023

62,100 62,200 3,068 3,028

62,200 62,300 3,073 3,033

62,300 62,400 3,078 3,038

62,400 62,500 3,083 3,043

62,500 62,600 3,088 3,048

62,600 62,700 3,093 3,053

62,700 62,800 3,098 3,058

62,800 62,900 3,103 3,063

62,900 63,000 3,108 3,068

63,000

63,000 63,100 3,113 3,073

63,100 63,200 3,118 3,078

63,200 63,300 3,123 3,083

63,300 63,400 3,128 3,088

63,400 63,500 3,133 3,093

63,500 63,600 3,138 3,098

63,600 63,700 3,143 3,103

63,700 63,800 3,148 3,108

63,800 63,900 3,153 3,113

63,900 64,000 3,158 3,118

64,000

64,000 64,100 3,163 3,123

64,100 64,200 3,168 3,128

64,200 64,300 3,173 3,133

64,300 64,400 3,178 3,138

64,400 64,500 3,183 3,143

64,500 64,600 3,188 3,148

64,600 64,700 3,193 3,153

64,700 64,800 3,198 3,158

64,800 64,900 3,203 3,163

64,900 65,000 3,208 3,168

65,000

65,000 65,100 3,213 3,173

65,100 65,200 3,218 3,178

65,200 65,300 3,223 3,183

65,300 65,400 3,228 3,188

65,400 65,500 3,233 3,193

65,500 65,600 3,238 3,198

65,600 65,700 3,243 3,203

65,700 65,800 3,248 3,208

65,800 65,900 3,253 3,213

65,900 66,000 3,258 3,218

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

66,000

66,000 66,100 3,263 3,223

66,100 66,200 3,268 3,228

66,200 66,300 3,273 3,233

66,300 66,400 3,278 3,238

66,400 66,500 3,283 3,243

66,500 66,600 3,288 3,248

66,600 66,700 3,293 3,253

66,700 66,800 3,298 3,258

66,800 66,900 3,303 3,263

66,900 67,000 3,308 3,268

67,000

67,000 67,100 3,313 3,273

67,100 67,200 3,318 3,278

67,200 67,300 3,323 3,283

67,300 67,400 3,328 3,288

67,400 67,500 3,333 3,293

67,500 67,600 3,338 3,298

67,600 67,700 3,343 3,303

67,700 67,800 3,348 3,308

67,800 67,900 3,353 3,313

67,900 68,000 3,358 3,318

68,000

68,000 68,100 3,363 3,323

68,100 68,200 3,368 3,328

68,200 68,300 3,373 3,333

68,300 68,400 3,378 3,338

68,400 68,500 3,383 3,343

68,500 68,600 3,388 3,348

68,600 68,700 3,393 3,353

68,700 68,800 3,398 3,358

68,800 68,900 3,403 3,363

68,900 69,000 3,408 3,368

69,000

69,000 69,100 3,413 3,373

69,100 69,200 3,418 3,378

69,200 69,300 3,423 3,383

69,300 69,400 3,428 3,388

69,400 69,500 3,433 3,393

69,500 69,600 3,438 3,398

69,600 69,700 3,443 3,403

69,700 69,800 3,448 3,408

69,800 69,900 3,453 3,413

69,900 70,000 3,458 3,418

70,000

70,000 70,100 3,463 3,423

70,100 70,200 3,468 3,428

70,200 70,300 3,473 3,433

70,300 70,400 3,478 3,438

70,400 70,500 3,483 3,443

70,500 70,600 3,488 3,448

70,600 70,700 3,493 3,453

70,700 70,800 3,498 3,458

70,800 70,900 3,503 3,463

70,900 71,000 3,508 3,468

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

71,000

71,000 71,100 3,513 3,473

71,100 71,200 3,518 3,478

71,200 71,300 3,523 3,483

71,300 71,400 3,528 3,488

71,400 71,500 3,533 3,493

71,500 71,600 3,538 3,498

71,600 71,700 3,543 3,503

71,700 71,800 3,548 3,508

71,800 71,900 3,553 3,513

71,900 72,000 3,558 3,518

72,000

72,000 72,100 3,563 3,523

72,100 72,200 3,568 3,528

72,200 72,300 3,573 3,533

72,300 72,400 3,578 3,538

72,400 72,500 3,583 3,543

72,500 72,600 3,588 3,548

72,600 72,700 3,593 3,553

72,700 72,800 3,598 3,558

72,800 72,900 3,603 3,563

72,900 73,000 3,608 3,568

73,000

73,000 73,100 3,613 3,573

73,100 73,200 3,618 3,578

73,200 73,300 3,623 3,583

73,300 73,400 3,628 3,588

73,400 73,500 3,633 3,593

73,500 73,600 3,638 3,598

73,600 73,700 3,643 3,603

73,700 73,800 3,648 3,608

73,800 73,900 3,653 3,613

73,900 74,000 3,658 3,618

74,000

74,000 74,100 3,663 3,623

74,100 74,200 3,668 3,628

74,200 74,300 3,673 3,633

74,300 74,400 3,678 3,638

74,400 74,500 3,683 3,643

74,500 74,600 3,688 3,648

74,600 74,700 3,693 3,653

74,700 74,800 3,698 3,658

74,800 74,900 3,703 3,663

74,900 75,000 3,708 3,668

75,000

75,000 75,100 3,713 3,673

75,100 75,200 3,718 3,678

75,200 75,300 3,723 3,683

75,300 75,400 3,728 3,688

75,400 75,500 3,733 3,693

75,500 75,600 3,738 3,698

75,600 75,700 3,743 3,703

75,700 75,800 3,748 3,708

75,800 75,900 3,753 3,713

75,900 76,000 3,758 3,718

Tax Table – Continued

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

76,000

76,000 76,100 3,763 3,723

76,100 76,200 3,768 3,728

76,200 76,300 3,773 3,733

76,300 76,400 3,778 3,738

76,400 76,500 3,783 3,743

76,500 76,600 3,788 3,748

76,600 76,700 3,793 3,753

76,700 76,800 3,798 3,758

76,800 76,900 3,803 3,763

76,900 77,000 3,808 3,768

77,000

77,000 77,100 3,813 3,773

77,100 77,200 3,818 3,778

77,200 77,300 3,823 3,783

77,300 77,400 3,828 3,788

77,400 77,500 3,833 3,793

77,500 77,600 3,838 3,798

77,600 77,700 3,843 3,803

77,700 77,800 3,848 3,808

77,800 77,900 3,853 3,813

77,900 78,000 3,858 3,818

78,000

78,000 78,100 3,863 3,823

78,100 78,200 3,868 3,828

78,200 78,300 3,873 3,833

78,300 78,400 3,878 3,838

78,400 78,500 3,883 3,843

78,500 78,600 3,888 3,848

78,600 78,700 3,893 3,853

78,700 78,800 3,898 3,858

78,800 78,900 3,903 3,863

78,900 79,000 3,908 3,868

79,000

79,000 79,100 3,913 3,873

79,100 79,200 3,918 3,878

79,200 79,300 3,923 3,883

79,300 79,400 3,928 3,888

79,400 79,500 3,933 3,893

79,500 79,600 3,938 3,898

79,600 79,700 3,943 3,903

79,700 79,800 3,948 3,908

79,800 79,900 3,953 3,913

79,900 80,000 3,958 3,918

80,000

80,000 80,100 3,963 3,923

80,100 80,200 3,968 3,928

80,200 80,300 3,973 3,933

80,300 80,400 3,978 3,938

80,400 80,500 3,983 3,943

80,500 80,600 3,988 3,948

80,600 80,700 3,993 3,953

80,700 80,800 3,998 3,958

80,800 80,900 4,003 3,963

80,900 81,000 4,008 3,968

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

81,000

81,000 81,100 4,013 3,973

81,100 81,200 4,018 3,978

81,200 81,300 4,023 3,983

81,300 81,400 4,028 3,988

81,400 81,500 4,033 3,993

81,500 81,600 4,038 3,998

81,600 81,700 4,043 4,003

81,700 81,800 4,048 4,008

81,800 81,900 4,053 4,013

81,900 82,000 4,058 4,018

82,000

82,000 82,100 4,063 4,023

82,100 82,200 4,068 4,028

82,200 82,300 4,073 4,033

82,300 82,400 4,078 4,038

82,400 82,500 4,083 4,043

82,500 82,600 4,088 4,048

82,600 82,700 4,093 4,053

82,700 82,800 4,098 4,058

82,800 82,900 4,103 4,063

82,900 83,000 4,108 4,068

83,000

83,000 83,100 4,113 4,073

83,100 83,200 4,118 4,078

83,200 83,300 4,123 4,083

83,300 83,400 4,128 4,088

83,400 83,500 4,133 4,093

83,500 83,600 4,138 4,098

83,600 83,700 4,143 4,103

83,700 83,800 4,148 4,108

83,800 83,900 4,153 4,113

83,900 84,000 4,158 4,118

84,000

84,000 84,100 4,163 4,123

84,100 84,200 4,168 4,128

84,200 84,300 4,173 4,133

84,300 84,400 4,178 4,138

84,400 84,500 4,183 4,143

84,500 84,600 4,188 4,148

84,600 84,700 4,193 4,153

84,700 84,800 4,198 4,158

84,800 84,900 4,203 4,163

84,900 85,000 4,208 4,168

85,000

85,000 85,100 4,213 4,173

85,100 85,200 4,218 4,178

85,200 85,300 4,223 4,183

85,300 85,400 4,228 4,188

85,400 85,500 4,233 4,193

85,500 85,600 4,238 4,198

85,600 85,700 4,243 4,203

85,700 85,800 4,248 4,208

85,800 85,900 4,253 4,213

85,900 86,000 4,258 4,218

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

86,000

86,000 86,100 4,263 4,223

86,100 86,200 4,268 4,228

86,200 86,300 4,273 4,233

86,300 86,400 4,278 4,238

86,400 86,500 4,283 4,243

86,500 86,600 4,288 4,248

86,600 86,700 4,293 4,253

86,700 86,800 4,298 4,258

86,800 86,900 4,303 4,263

86,900 87,000 4,308 4,268

87,000

87,000 87,100 4,313 4,273

87,100 87,200 4,318 4,278

87,200 87,300 4,323 4,283

87,300 87,400 4,328 4,288

87,400 87,500 4,333 4,293

87,500 87,600 4,338 4,298

87,600 87,700 4,343 4,303

87,700 87,800 4,348 4,308

87,800 87,900 4,353 4,313

87,900 88,000 4,358 4,318

88,000

88,000 88,100 4,363 4,323

88,100 88,200 4,368 4,328

88,200 88,300 4,373 4,333

88,300 88,400 4,378 4,338

88,400 88,500 4,383 4,343

88,500 88,600 4,388 4,348

88,600 88,700 4,393 4,353

88,700 88,800 4,398 4,358

88,800 88,900 4,403 4,363

88,900 89,000 4,408 4,368

89,000

89,000 89,100 4,413 4,373

89,100 89,200 4,418 4,378

89,200 89,300 4,423 4,383

89,300 89,400 4,428 4,388

89,400 89,500 4,433 4,393

89,500 89,600 4,438 4,398

89,600 89,700 4,443 4,403

89,700 89,800 4,448 4,408

89,800 89,900 4,453 4,413

89,900 90,000 4,458 4,418

90,000

90,000 90,100 4,463 4,423

90,100 90,200 4,468 4,428

90,200 90,300 4,473 4,433

90,300 90,400 4,478 4,438

90,400 90,500 4,483 4,443

90,500 90,600 4,488 4,448

90,600 90,700 4,493 4,453

90,700 90,800 4,498 4,458

90,800 90,900 4,503 4,463

90,900 91,000 4,508 4,468

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

91,000

91,000 91,100 4,513 4,473

91,100 91,200 4,518 4,478

91,200 91,300 4,523 4,483

91,300 91,400 4,528 4,488

91,400 91,500 4,533 4,493

91,500 91,600 4,538 4,498

91,600 91,700 4,543 4,503

91,700 91,800 4,548 4,508

91,800 91,900 4,553 4,513

91,900 92,000 4,558 4,518

92,000

92,000 92,100 4,563 4,523

92,100 92,200 4,568 4,528

92,200 92,300 4,573 4,533

92,300 92,400 4,578 4,538

92,400 92,500 4,583 4,543

92,500 92,600 4,588 4,548

92,600 92,700 4,593 4,553

92,700 92,800 4,598 4,558

92,800 92,900 4,603 4,563

92,900 93,000 4,608 4,568

93,000

93,000 93,100 4,613 4,573

93,100 93,200 4,618 4,578

93,200 93,300 4,623 4,583

93,300 93,400 4,628 4,588

93,400 93,500 4,633 4,593

93,500 93,600 4,638 4,598

93,600 93,700 4,643 4,603

93,700 93,800 4,648 4,608

93,800 93,900 4,653 4,613

93,900 94,000 4,658 4,618

94,000

94,000 94,100 4,663 4,623

94,100 94,200 4,668 4,628

94,200 94,300 4,673 4,633

94,300 94,400 4,678 4,638

94,400 94,500 4,683 4,643

94,500 94,600 4,688 4,648

94,600 94,700 4,693 4,653

94,700 94,800 4,698 4,658

94,800 94,900 4,703 4,663

94,900 95,000 4,708 4,668

95,000

95,000 95,100 4,713 4,673

95,100 95,200 4,718 4,678

95,200 95,300 4,723 4,683

95,300 95,400 4,728 4,688

95,400 95,500 4,733 4,693

95,500 95,600 4,738 4,698

95,600 95,700 4,743 4,703

95,700 95,800 4,748 4,708

95,800 95,900 4,753 4,713

95,900 96,000 4,758 4,718

Tax Table – Continued

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

96,000

96,000 96,100 4,763 4,723

96,100 96,200 4,768 4,728

96,200 96,300 4,773 4,733

96,300 96,400 4,778 4,738

96,400 96,500 4,783 4,743

96,500 96,600 4,788 4,748

96,600 96,700 4,793 4,753

96,700 96,800 4,798 4,758

96,800 96,900 4,803 4,763

96,900 97,000 4,808 4,768

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

97,000

97,000 97,100 4,813 4,773

97,100 97,200 4,818 4,778

97,200 97,300 4,823 4,783

97,300 97,400 4,828 4,788

97,400 97,500 4,833 4,793

97,500 97,600 4,838 4,798

97,600 97,700 4,843 4,803

97,700 97,800 4,848 4,808

97,800 97,900 4,853 4,813

97,900 98,000 4,858 4,818

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

98,000

98,000 98,100 4,863 4,823

98,100 98,200 4,868 4,828

98,200 98,300 4,873 4,833

98,300 98,400 4,878 4,838

98,400 98,500 4,883 4,843

98,500 98,600 4,888 4,848

98,600 98,700 4,893 4,853

98,700 98,800 4,898 4,858

98,800 98,900 4,903 4,863

98,900 99,000 4,908 4,868

taxable And you are —

income is —

At But Single Married

least less

✱

filing

than Married jointly

filing

sepa-

rately

✱

Head of

family

Your tax is —

99,000

99,000 99,100 4,913 4,873

99,100 99,200 4,918 4,878

99,200 99,300 4,923 4,883

99,300 99,400 4,928 4,888

99,400 99,500 4,933 4,893

99,500 99,600 4,938 4,898

99,600 99,700 4,943 4,903

99,700 99,800 4,948 4,908

99,800 99,900 4,953 4,913

99,900 100,000 4,958 4,918

Tax Table – Continued

Over $100,000.00

If taxable income is over $100,000, use

the following worksheet to figure your

tax.

• Single

• Married filing separately

• Head of family

1 Enter taxable income . .

2 Less...............–100,000.00

3 Subtract line 2 from

line 1 ...............

4 Multiply line 3 by .05 . . x .05

5 Enter result here ......

6 Plus ...............+ 4,958.00

7 Add lines 5 and 6.

Your tax is ........

• Married filing jointly

1 Enter taxable income . .

2 Less...............–100,000.00

3 Subtract line 2 from

line 1 ...............

4 Multiply line 3 by .05 . . x .05

5 Enter result here ......

6 Plus .................+ 4,918.00

7 Add lines 5 and 6.

Your tax is ........

▼

1 Enter the tax as shown on line 22 on 2021 Form 1040/Form 1040-SR/Form 1040NR. .................................

2 Net Investment Income Tax. Enter amount from line 17, 2021 Form 8960. ...........................................

3 Federal Tax. Add Lines 1 and 2. ..............................................................................

4a Earned Income Credit (EIC). Enter the amount from line 27a of 2021 Form 1040/Form 1040-SR.

4b Refundable Child Tax Credit or Additional Tax Credit. Enter the amount from Line 28 of

2021 Form 1040/Form 1040-SR. ................................................

4c American Opportunity Credit. Enter the amount from line 29 of 2021 Form 1040/Form 1040-SR.

4d Credits from Forms 2439. Enter the amount from Schedule 3, Part II, line 13a of 2021

Form 1040/Form 1040-SR/Form1040NR. .........................................

5 Add lines 4a,b, c and d. .....................................................................................

6 Subtract line 5 from line 3. If amount is negative enter zero. .......................................................

1 Calculate the basis for the Federal Income Tax Deduction

1a Enter the tax as shown on line 18 on 2021 Form 1040/Form 1040-SR/Form 1040NR. ..................................

1b Enter the amount as shown on line 19 of 2021 Form 1040/Form 1040-SR/1040NR (non-refundable child tax credit or credit for

other dependents from Schedule 8812). .......................................................................

1c Enter the 2021 Schedule 3, Part 1, Line 2 (Credit for Child and dependent care expenses (Form 2441, Line 11)). ...........

1d Enter the total of nonrefundable credits from Line 21 on 2021 Form 1040/Form 1040-SR/Form 1040NR. ..................

1e Add lines 1a, 1b, 1c and then subtract line 1d, if the amount is negative, enter zero. ....................................

2 Net Investment Income Tax. Enter amount from line 17, 2021 Form 8960. ............................................

3 Child Tax Credit. Enter the recomputed credit based on 2020 1040 Instructions - Child

Tax Credit and Credit for Other Dependents Worksheet Line 12. ......................

4 Credit for Child and Dependent Care Expenses. Enter the recomputed credit based on

2020 Form 2441 Line 11. .......................................................

5 Total recomputed non-refundable credits - add line 3 and Line 4. ...................................................

6 Subtract Line 5 from Line 1e. If the amount is negative enter zero. ..................................................

7 Add Line 2 and Line 6. .......................................................................................

8 Earned Income Credit (EIC). 8a Enter the amount from line 27a of Form 1040/Form 1040-SR;

8b Enter the recomputed credit based on 2020 EIC worksheets and tables. ................

9 Additional Child Tax Credit

9a Advanced Child Tax Credit Payments (Schedule 8812 line 14f or 15e)..................

9b Refundable Child Tax Credit or Additional Tax Credit. Enter the amount from Line 28 of

2021 Form 1040/Form 1040-SR. (Schedule 8812 Line 14i or 15h)......................

9c Additional Tax (repayment of overpaid tax credit) 2021 1040 Schedule 2 line 19 (Sch 8812

Line 40)......................................................................

9d Add lines (9a) & (9b) then subtract line (9c); 9e Enter the recomputed credit based on

2020 Form 8812 Line 15. .......................................................

10 Refundable Credit for Child and Dependent Care Expenses. 10a Enter the amount

from Schedule 3, Part II, line 13g of 2021 Form 1040/Form 1040-SR/Form1040NR. 10b

is zero, this credit was non-refundable in 2020. .....................................

11 American Opportunity Credit. Enter the amount from line 29 of 2021 Form 1040/Form 1040-SR.

12 Credits from Forms 2439. Enter the amount from Schedule 3, Part II, line 13a of 2021

Form 1040/Form 1040-SR/Form1040NR. .........................................

13 Add lines 8b, 9e, 10b, 11 and 12. ..............................................................................

14 Subtract line 13 from line 7. If amount is negative enter zero. .......................................................

15 Federal Income Tax Deduction. Enter the greater of Part I Line 6 or Part II Line 14; also enter on line 12 of Form 40, line 9

of Form 40A or page 2, Part IV, line 4 of Form 40NR. .............................................................

If the amount on your 2021 Federal Form 1040/1040-SR/1040NR line 18 is zero and the Net Investment Income Tax from line 17, 2021 Form 8960 is also zero, STOP,

enter zero on Line 15 below.

Federal Income Tax Deduction Worksheet

10b

10a

Recomputed based on

2020 Rules

From 2021

1040 / 1040-SR / 1040NR

Part II -

Pursuant to Act 2022-37 (HB 231) which provides that any federal income tax reductions attributable to the federal child tax credit, the earned income tax

credit, and the federal child and dependent care tax credits, the federal income tax deduction shall be calculated as if the individual paid the federal income tax that would

otherwise have been paid under the provisions of the Internal Revenue Code in effect on December 31, 2020.

Part I

Lines 3, 4, 8b & 9e should be recomputed based on 2020 calculations using 2021 information.

My Alabama Taxes (MAT)

You can file your Alabama Resident and Non-Resident returns

online through My Alabama Taxes (MAT) at no charge.

The Alabama Department of Revenue offers several

methods for filing your Individual Income Tax Return.

Federal/State Electronic Filing Program

Your professional tax practitioner can file both your

Federal and State returns by using the E-File Program

or can print a 2-D Barcode for you.

Free Filing of

Federal/State Return

Free electronic filing of your Alabama

and Federal Income Tax Returns are provided for low

income wage earners, senior citizens, students, and active duty military

personnel. For more information on the qualifications, visit our website

at https://revenue.alabama.gov/individual-corporate/individual-

income-tax/individual-income-tax-electronic-filing-options/

Federal/State On-Line Filing Program

You can file your own Federal and State return on-line by

purchasing the program from a local retailer or going to

https://revenue.alabama.gov/individual-corporate/

approved-software-vendors/ to see a listing of Approved On-Line

Service Providers. If you do not

want to file electronically, these programs will print out a 2-D Barcode.

This option is available to all taxpayers filing an Alabama Individual Income tax

return. Please visit https://revenue.alabama.gov/services/my-alabama-taxes-sign-up/

to sign up and get started filling out your return.

2-D Barcode Filing Program

All the programs above should produce a 2-D

Barcode for you. Also, you can print a 2-D Barcode

by using our fillable Form 40 or Form 40NR which

you can obtain at https://revenue.alabama.gov/

forms/?d=income. After you fill out the form and

print it, a 2-D Barcode will be produced on the top of

the form. You can still mail your return, but use of

the 2-D Barcode will ensure faster

processing.

OTHER FILING OPTIONS:

VITA/AARP/IMPACT ALABAMA

Free tax help and electronic filing of your Federal and State returns

for low to moderate income taxpayers, people age 60 and older

and military families is provided by the VITA, AARP, or IMPACT

ALABAMA volunteers. For more information, visit our website at

https://revenue.alabama.gov/individual-corporate/

assistance-for-taxpayers/.

How To Obtain Forms

To obtain instructions, schedules and forms visit our Web site at:

www.revenue.alabama.gov

. Additional booklets, forms, and schedules are

listed below. Certain booklets may be obtained by visiting the Alabama Tax-

payer Service Center nearest you.

BOOKLETS

Form 40 Booklet. This booklet contains the following forms and schedules

with instructions: Form 40, Schedules A, B, DC, CR, D, E, W-2, DS, HOF,

ATP and Form 40V.

Form 40NR Booklet. This booklet contains the following forms and sched-

ules with instructions: Form 40NR, Schedules A, B, D, E, W-2, DS, HOF

and Form 40V.

FORMS

Form 40 Individual Income Tax Return for full year residents of Alabama

and also part-year residents of Alabama.

Form 40A Individual Income Tax Return (Short Form) for full year resi-

dents of Alabama.

Form 40NR Nonresident Individual Income Tax Return for nonresidents

of Alabama.

Form 40ES to make estimated tax payments.

SCHEDULES

Schedule A, B, & DC – for itemized deductions, interest and dividend in-

come, and donation check-offs.

Schedule CR – for computation of credit for taxes paid to other states.

Schedule D&E – for reporting income from the sale or exchange of capital

assets, and for reporting income from rents, royalties, partnerships, es-

tates, and trusts.

Schedule AAC – for computation of Alabama adoption tax credit.

Schedule AATC – for computation of the credit for transferring a student

from a failing public school to a non-failing public school or non-public

school.

Schedule DS – form must be completed to receive proper credit for de-

pendents claimed on Form 40 and 40NR.

Schedule HOF – form must be completed to receive proper credit for head

of family claimed on Form 40 and 40NR

Schedule OC – for computation of individual tax credits.

Schedule W-2 – form must be completed to receive proper credit for Ala-

bama income tax withheld on Forms 40A, 40, and 40NR.

Schedule CP – form must be completed to receive proper credit for Ala-

bama composite payments withheld and Electing PTE Credits

Schedule KRCC-I – for reporting the recipient’s share of Capital Credit for

Individual Taxpayers.

Schedule ATP – for computation of Additional Taxes & Penalties.

Schedule HBC – form must be completed to receive proper credit for First

Time Second Chance Home Buyer Deduction.

NOTE:

Alabama does not provide the following forms and schedules and requests

that the appropriate federal schedule be used making the modifications

as required by Alabama law.

Schedule C for reporting income from a personally owned business.

Schedule F for reporting income from farming.

Form 2106 for claiming employee business expenses.

Form 3903 for claiming moving expenses.

Form 4684 for reporting casualty and theft losses.

Form 4797 for reporting sale of business property.

Form 6252 for reporting installment sale income.

Form 8283 for reporting noncash contributions.