Ala State Form 40 does not show Social Sec Income that was on Federal Return. This issue is with the software.

Forum|Forum|1 year ago
January 26, 2025
2 replies
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The software has an issue with leaving off Social Sec Income on State Return. Software support needs to investigate and fix this issue.

xmasbaby0

Employee

Alabama does not tax Social Security benefits.

There are 9 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

gs_robinsonAuthor

I appreciate your response.

Even though Alabama does not tax Social Security income, it does require it to be reported on Form 40 on Part IV line 5. Line 5 states: Do you have income which is reported on your Federal Income tax, but not reported on your Alabama return (other than state tax refund)? Yes or No. The software incorrectly selected No. On my past Alabama state returns, TurboTax selected Yes and added my Social Security income. So, there is an issue with Form 40 for the 2024 tax year for the Alabama return. The software support team needs to correct this issue. Otherwise, I will have to manually correct this information when I print my Alabama State Return. Then, I will have to mail my return instead of using Efile. I reported this issue on a chat with Turbo Tax Support. I posted this issue in the community forum to make other people aware of it.

VolvoGirl

Employee

Maybe it's because your SS is not taxable income on your federal return? Check your 1040 line 6b and see if anything is taxed this year.

Cindy456

Has this issue been addressed? I am encountering the same problem. My Alabama return is lumping in non-taxable Social Security payments with taxable income.