Alabama Roth conversion error

[RollTide68]

Have had three returns with 401K/Trad IRA conversion to Roth. On the Alabama Pension Exclusion worksheet that feed into the other income section of the Form 40 (AL State Return) the full amount flows to both the Taxable pension/IRA entry AND the Taxable Roth IRA Conversion entry.  This results in the taxable amount doubling as it flows to Part I Other Income line 4 for Retirement income (i.e.. Roth conversion amount of $25,000 with $25,000 taxable and $50,000 on the other income line).

For Non-Deductible Trad IRA to Roth (back door Roth) the taxable amount flows to the Taxable pension/IRA correctly but the full amount flows to the Taxable Roth IRA Conversion resulting the Part I Other Income line 4 for Retirement income being the sum of the taxable and the amount of the conversion (i.e.. Roth conversion amount of $7184 with only $184 taxable but $7184 on the other income line).

Anyone else noticed this?

[BobKamman]

My opinion on Roth conversions is confirmed.  People in Alabama are doing them  . . .

[IntuitAmyC2]

I tried it out and the rollover is not coming over to Part I line 4 but another 1099-R not taxable to AL was showing up. I notified my boss. You will need to remove the erroneous income from the pension exclusion worksheet.