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January 28, 2023
Question

I am working in Tennessee and my residence is in Alabama. My State return was rejected for error code AL40-050. How do I fix my return?

  • January 28, 2023
  • 1 reply
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AL40-050 - This return could not be processed for electronic filing by the state. Alabama Department of Revenue has returned the file with the following message: "Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2.

1 reply

January 29, 2023

Alabama Code AL40-050 is a rejection on your return because your total Alabama Wages must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. 

 

Here is a solution adopted from an answer by Tax Expert @LenaH:

 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

 

  1. With your return open, select My Info in the left-hand menu.
  2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
  3. At "Did you make money in any other states?," answer Yes and make sure your nonresident state is selected from the drop-down.
  4. Select Continue to return to your Personal info summary.

Next go to your Tennessee W-2.

 

  1. Type w-2 in Search (the magnifying glass) in the top right.
  2. Select jump to w-2.
  3. On “Your W-2 info so far," select Review next to your Tennessee W-2.
  4. Choose Florida in the dropdown box (Box 15) and enter their federal payer ID (as shown in Box b). Then, add your wages in Box 16. 

This will fix your error and you will be able to refile your return. Tennessee doesn’t appear in the dropdown menu, so use Florida, another state with no income tax. Don’t worry, adding Florida to the TN W-2 will not affect anything.

 

My AL state return is rejected with code AL40-050

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