Alabama does not tax military retirement or Alabama retirees retirement. They are taxable on the federal. Turbo tax has a code from what I’m told but even entering 0’s does not work on pro series.

There has to be a way. We have a lot of this in our state. I’m missing something

S

suzanne3

Level 2

Have you figured out how to enter this information? I am having the same issue with indicating a CA pension is not taxable in AL - the pension plan is listed on the Alabama Rev. Dept list of non-taxable plans so there must be a way to indicate it is non-taxable in AL

Thanks so much if you have found the solution!

itonewbie

Level 15

Normally, if there's special treatment at the state level, you'll find a checkbox or toggle on one of the following:

Input screen where you enter the retirement income or on that screen's state tab;
Under State & Local > Modifications > AL Modifications

---------------------------------------------------------------------------------Still an AllStar

itonewbie

Level 15

Had a quick look. It turns out that Intuit didn't program any toggle for AL, unlike some other states.

If it is of those that are eligible for exemption, you will just override the state taxable amount as @George4Tacks suggested.

This can be done either:

Under Income > Pensions, IRAs (1099-R), on the line State taxable amount, if different; or
Under State & Local > Income > AL Income, on the line Alabama taxable pensions (Form 40, line 5b) [Override]

---------------------------------------------------------------------------------Still an AllStar

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