If I enter a zero in the 4th column to the right, which indicates that Alabama does not allow those taxes or does not allow the full amount shown on the Federal return, it should place a negative adjustment amount in the the 2nd column for adjustments and reflect the Alabama allowable amount in the 3rd column on Form 1041. The 4th column doesn't appear on the actual Form 41 return in Alabama. It is used, or was in all the past years, to reflect adjustments to the Alabama 41 amounts between federal and state.

It is not doing that now. There is no way on the schedule to show an adjustment to taxes and the correct allowable amount of the Alabama deduction for taxes. I have to override the adjustment calculation and the allowable Alabama amount for the Alabama Fiduciary return to be correct. Can I e-file with the overrides? I don't know yet as the client hasn't come in.

This is absolutely a big issue on the State of Alabama Form 41 as many fiduciaries have to file and pay the final personal returns for a decedent and while the Federal allows the deduction of the State income taxes paid on Form 1041, Alabama does not allow a deduction for State Income taxes paid to Alabama.

This needs to be fixed.