mm1
Level 5

Yesterday (2-17-22) the AL legislature passed a new tax law for a Child Tax Credit for Alabama taxpayers and it is on the Governor's desk to sign. They made this new law retroactive to the 2021 tax year!!! They were so proud of that and said "if you have already filed your tax return then all you have to do is amend your return to get the rest of your money. If you haven't filed, you can wait until the Governor signs the bill and then file to get it." Obviously they haven't got a clue that filing as soon as the Governor signs just doesn't happen like that and they didn't consult the Tax Division because Alabama amended returns have to be paper-filed and cannot be e-filed. 

This (supposedly) only affects taxpayers who had Child Tax Credit on their federal returns.

At this point, there are no regulations, no instructions, no form revisions in the pike, it hasn't even been signed by the Governor. When the Alabama Revenue Dept manages to get that done, we would have to wait for Proseries to update Alabama so we are talking a long time to be able to actually file a correct Alabama return with the CTC.

Our firm has chosen to go ahead with filing AL returns, just letting the clients know that it is their choice to wait or to possibly have to file an amended AL return. We are of the belief that the Governor will not make all those poor first filers have to pay to have their returns amended and that she will get the Revenue Dept on board to do as the IRS did on the unemployment change and fix it internally so that no amended return has to be filed. 

0 Cheers