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:
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