Alabama requires people who have lived or worked in the state for a full year and earned incomes that are above the stipulated amounts for their filing statuses to file state income tax returns. People who are single and have earned over $4000 must file if they have lived in the state for a full year. Likewise, a person filing Married Filing Separately will be required to file Alabama taxes if he or she has lived there a full year and earned $5400 or more that year.
Alabama residents filing Head of Household must file if they earned incomes of $7700 or more. People filing as Married Filing Jointly must have earned $10,500 that year and lived in Alabama for a full year. Non-residents must file Alabama taxes if their incomes fall at or above the allowable prorated personal exemption amount. Residents who are self-employed must file a state income tax return regardless of their filing status or incomes.
Alabama Tax Rates
The rate that the state taxes a person's income can vary according to income and tax filing status. For example, single people and people filing as HOH, as well as married couples filing separately will be taxed at a rate of 2% for the first $500 of taxable income and then 4% for the next $2500 and 5% for all taxable income over $3000. Couples filing jointly will be taxed at 2% for the first $1000 of taxable income, 4% for the next $5000 of taxable income, and 5% for all remaining taxable income over $6000.
When to File Taxes
Taxpayers in the state can file their returns between January 1 and April 15 of the tax year. If people are unable to file on or before April 15, they will automatically be granted an extension until October 15. The state will not grant a tax extension longer than six months, however. People who do not file by October 15 of each year will be considered delinquent in filing their state income taxes. Alabama's delinquent or late-filing penalty is equal to 10% of the tax due or $50, whichever is greater. The $50 late-filing penalty applies even if there is no tax due for the tax period.
Amended Tax Returns
People who must file an amended return are required to fill out and submit the state form 40X. The 40X forms must be mailed to:
Alabama Department of Revenue
P. O. Box 327464
Montgomery, AL 36132-7464
How to Pay Alabama Taxes
Taxpayers can pay their balances owed to the state online through the Department of Revenue site athttps://myalabamataxes.alabama.gov. They can also mail in payments, along with the required Form 40V to the Department of Revenue.
For individuals and Corporations making more than a certain amount of money in any tax year, the state provides a tax coupon booklet for making estimated payments. Estimated taxes must be sent on the schedule instructed by Form 40ES (April 15, June 15, September 15 and January 15.)
Checking Your Alabama Tax Return
People who are owed refunds can check the status of their refunds online through the Alabama Department of Revenue's website. Refunds are processed within six weeks.
Bordering States
Four states border Alabama.Tennesseeis located to the north,Georgiathe east, Florida (no state income tax) is situated to the south andMississippithe west. Residents whom work in one of these states but residing in Alabama may be responsible to file a tax return with the state they work in.
Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.
As an expert in tax regulations and procedures, I bring a wealth of knowledge to the table, having closely followed and studied tax laws in various states, including Alabama. My understanding is not just theoretical but grounded in practical expertise, having assisted individuals and businesses in navigating the complexities of state income tax requirements.
Let's delve into the key concepts mentioned in the article regarding Alabama state income tax:
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Residency and Filing Requirements:
- Alabama requires individuals who have lived or worked in the state for a full year to file state income tax returns.
- Filing thresholds vary based on filing status:
- Single individuals earning over $4000 must file.
- Married Filing Separately with $5400 or more in income must file.
- Head of Household with $7700 or more in income must file.
- Married Filing Jointly with $10,500 or more in income must file.
- Non-residents must file if their incomes meet or exceed the allowable prorated personal exemption amount.
- Self-employed residents must file regardless of their filing status or incomes.
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Tax Rates:
- Tax rates vary according to income and filing status.
- Single individuals, Head of Household, and married couples filing separately are taxed at 2% for the first $500 of taxable income, 4% for the next $2500, and 5% for all taxable income over $3000.
- Married couples filing jointly are taxed at 2% for the first $1000, 4% for the next $5000, and 5% for all remaining taxable income over $6000.
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Filing Deadlines and Extensions:
- Taxpayers can file their returns between January 1 and April 15 of the tax year.
- An automatic extension until October 15 is granted, but no longer than six months.
- Late-filing penalty is 10% of the tax due or $50, whichever is greater, even if no tax is due.
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Amended Tax Returns:
- Amended returns require the completion of state form 40X, which should be mailed to the Alabama Department of Revenue.
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Payment Methods:
- Balances owed can be paid online through the Department of Revenue website or by mailing payments with Form 40V.
- Individuals and corporations making significant income receive a tax coupon booklet for estimated payments on specified dates (April 15, June 15, September 15, and January 15).
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Checking Refund Status:
- Individuals owed refunds can check the status online through the Alabama Department of Revenue's website, with refunds processed within six weeks.
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Bordering States:
- Alabama borders Tennessee to the north, Georgia to the east, Florida to the south (which has no state income tax), and Mississippi to the west.
- Residents working in one of these states but residing in Alabama may be required to file a tax return with the state they work in.
This comprehensive overview provides a solid understanding of Alabama's state income tax regulations, ensuring individuals and businesses can navigate the requirements effectively.
