CTC-Alabama

This act applies to individuals who received the federal child tax credit (including advanced payments received in 2021), and earned income tax credit and/or child and dependent care credit during 2021.

Any taxpayer who claims one of these credits shall be deemed to have paid that amount for purposes of computing their federal income taxes paid deduction for Alabama income tax purposes. This is only for the tax year ending December 31, 2021.

If a taxpayer had already e-filed their Alabama income tax return prior to the passage of the act, the ADOR will automatically adjust their return to take advantage of the enhanced FIT deduction.