What Form Should I Use?

Alabama provides three main forms for individual taxpayers. They are:

  • Form 40 - our "long form"
  • Form 40A - the "short form", and
  • Form 40NR - for nonresident taxpayers

Form 40

According to the Instruction Booklet for 2012 returns, Form 40 should be used by all filers who are either full-year or part-year residents of the state, unless they meet all of the requirements for Form 40A.

Form 40A

The short form may be used only by filers who meet all of the following requirements:

  • They are residents of Alabama for the entire year.
  • They do not itemize deductions.
  • They don't claim any of the adjustments to income, such as the IRA deduction, alimony paid, Federal income taxes paid for a prior year, etc. (The deduction for the current year Federal income tax liability is allowed on Form 40 or 40A.)
  • Their only gross income is from salaries or wages reported on Forms W-2, plus interest or dividend income not exceeding $1,500.
  • They do not have any income or loss reported on Schedules C (self-employment income), D (capital gains or losses), E (rental activities or income from partnerships, S corporations, estates, or trusts), or F (farming); and
  • They do not claim the credit for taxes paid to another state.

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Form 40NR

Form 40NR should be used by anyone who

  • Is not a resident of Alabama, but
  • Receives income from Alabama sources or from the performance of services in Alabama, and
  • The Alabama income is greater than the taxpayer's pro rated exemption for the year.

If a nonresident taxpayer has Alabama source income for part of the year, and then moves to the state during another part of the year (regardless of which happens first), she will file Form 40NR for the nonresident period and Form 40 for the resident period. She will claim the personal exemption and the dependent exemption on Form 40, and she will not claim any exemptions on Form 40NR.

This page last updated 2/7/13

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