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March 17, 2025
Question

Where do I enter Income from Governmental obligations that are taxable on federal and not taxable on Alabama?

  • March 17, 2025
  • 1 reply
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On my brokerage statement it says, "Potential State Tax Exclusions from Governmental Obligations." Where do I enter this amount?

    1 reply

    AmyC
    Employee
    March 18, 2025

    It depends. Verify the deductions to which you are entitled. US Obligations and if you are an AL resident, AL municipal bonds qualify.

    • If you have a 1099-INT, entered as a federal obligation - no adjustment necessary. 
    • If you have a 1099-DIV, be sure to select a portion of the dividends are interest and enter the amount.

    Follow these steps:

    1. You can select none of these apply -unless you have federal obligations then select it. 
    2. The next screen will allow you to make the state adjustment you need. 
    3. Select that you earned exempt interest-dividends in more than one state.
    4. Select PA and enter the amount
    5. Select the bottom option of multiple states and enter the remainder

    Reference: What interest income is exempt from Alabama taxation?

     

     

     

     

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