Alabama does not tax military retirement pension income and it should not be reported on the Alabama tax return.
To remove the military retirement income from the Alabama individual tax return in TaxSlayer ProWeb, from the Alabama Return menu select:
- Adjustments to Income
- Alabama Schedule RS (Retirement Schedule)
- Add Retirement - Select the applicable 1099-R, select Yes for "Is this Exempt from AL Tax?".
- Taxable Amount of Pensions and Annuities - Edit the 1099-R.
- Select Yes for Exempt from AL Income - Enter "Military Pension" as the reason for exemption.
Additional Information:
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.