An Alabama resident may claim a credit for income taxes paid to another state for income taxed by both states.
When completing an individual income tax return in TaxSlayer ProWeb that includes multiple state returns, it's best to prepare the nonresident return first. Once the nonresident return is finished, print a copy of the return, as its information is necessary for the credit in the Alabama resident return.
To enter taxes paid to another state for Alabama residents in TaxSlayer ProWeb, from the Alabama Return menu select:
- Credits
-
Credit for Taxes Paid to Another State
- Select the Other State - Select the other state from the dropdown menu.
- Enter Portion of AL AGI attributable to Other State - Enter the income in the other state return that's also in Alabama AGI.
- Enter the taxable income from Other State - Enter the amount of taxable income reported on the other state return.
- Enter the amount of income tax paid to the other state - Enter the total tax on the other return. Don't enter the taxpayer's state withholdings nor the balance due on the state return.
Additional Information: