Question

How do I enter a severance payment exempt from Alabama taxes that should be shown on Form 40, page 2, part 1, line 8 as a negative amount?

Forum|Forum|6 years ago
February 2, 2020
1 reply
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TurboTax Premier Online

There is a page that says "Federal Income Not Tax By Alabama" where you can enter the severance payment as a negative number.

C

clackeyAuthor

I found the page and entered the exempt income however, the screen indicates that what is entered does not change int refund/payment amount. This exemption should lower my taxable income. I still need assistance with reflecting this in my return.

M

MAK70

So that page says "if you reported income on your federal return that is not taxed by Alabama and not reported elsewhere on your Alabama return, enter it here. This is for informational purposes only."

@clackey