Does anyone have an issue with their Alabama State taxable income computed by turbotax being larger than the dollar amount listed in the state income section?

Forum|Forum|2 years ago
February 5, 2024
2 replies
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Alabama does not tax social security nor pension income from certain defined benefit plans which I have. (Yes, I checked the box that they were not taxable in the software.) The majority of income is from multiple 1099-Rs. Small amount from 1099-INT. No W-2. One 1099-R is a Roth conversion. In one section, it asks if that 1099 is an IRA OR a Roth IRA conversion. It has the dollar amount in both boxes for the OR and will not allow me to clear one. That is the only troublesome field I see, but the dollar amount the computation is off is not equal to the Roth conversion amount. Federal computations all appear fine. Just state issues.

TurboTax Deluxe Online

CatinaT1

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JJW16

Yes, I'm having same issue, just ran updates, no change. It looks like my 2023 Roth Conversion is being double counted towards my state income (Alabama). If I converted 100,000 from a traditional IRA, I realize I count this as income, however, when I click the box that it was converted to a Roth, my State Income increases by 200,000 (effectively double counting my conversion) and taxing the same money twice? Only way I've been able to avoid this is to go to my Alabama Forms, Pen Excl Wks and manually change the number. Am I missing something?

Mweist

I just printed my 2023 taxes, not expecting anything odd. The 1099-R info on the Alabama RS was 120K Roth conversion and also entered as 240 further right on the same line. Why 240K? Now i am battling between turbo tax and H&R Block. The Fed Tax is within 20 dollars but the Alabama state is off by 5K. The white flags are going up.

Ed Salgado

I have been filing Alabama State Taxes since 2003 and have never had State Taxes on my Military Retired pay. Why now??? The State just took $1883 from my checking account as State taxes owed for 2024!!!

DawnC

Employee

Military retirement is deductible in Alabama but you have to go through the retirement income adjustments screen while preparing the Alabama tax return. @Ed Salgado Prepare an amended return for AL 2024 - and subtract your military retirement pay.

Once you answer YES on the 2nd screen below, the income will show as non-taxable on your AL return.