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how do I enter none taxable income

Forum|Forum|4 years ago
February 9, 2022
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Best answer by AmyC

For AL, there is a maximum of $50,000 allowed for the severance pay exemption. Any amount over that would be taxable. Box 16 should be blank if less than $50k and you are right, no taxes. Please check your w2 entry is blank for for all state information if there is no taxable income.

In addition, the state tax form does have a line for income taxable on federal but not state. Continue through AL until you come to Federal Income Not Taxed by Alabama. Enter Severance Pay and the amount.

X

xmasbaby0

Employee

Why do you want to enter no taxable income? What are you trying to do?

**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.**

M

meny006Author

I'm not sure what I need to do all I know is the state of Alabama had an agreement with Goodyear that they will not tax income we recieved after the plant closure but turbotax is taxing my state income . there was no state tax taken on my W2

AmyCAnswer

Employee

For AL, there is a maximum of $50,000 allowed for the severance pay exemption. Any amount over that would be taxable. Box 16 should be blank if less than $50k and you are right, no taxes. Please check your w2 entry is blank for for all state information if there is no taxable income.

In addition, the state tax form does have a line for income taxable on federal but not state. Continue through AL until you come to Federal Income Not Taxed by Alabama. Enter Severance Pay and the amount.

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M

Mike9241

what type of non-taxable income. in most cases nothing is entered but there are exceptions like municipal interest, retirement plan rollovers, social security.