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What are some examples of taxable Alabama income?

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Question
What are some examples of taxable Alabama income?

Answer

Income to be Reported on the Alabama Income Tax Return
 
All income is subject to Alabama income tax unless specifically exempted by state law. The term "income" includes, but is not limited to:

  • Wages including salaries, fringe benefits, bonuses, commissions, fees, and tips.
  • Dividends. 
  • Interest on: bank deposits, bonds, notes, Federal Income Tax Refunds, mortgages on which you receive payments, accounts with savings and loan associations, mutual savings banks, credit unions, etc.
  • Original Issue Discount. 
  • Distributions from an Individual Retirement Arrangement (IRA) including SEPs and DECs, if you  excluded these amounts in a prior year.
  • Bartering income (fair market value of goods or services you received in return for your services).
  • Business expense reimbursements you received that are more than you spent for the expenses.
  • Amounts received in place of wages from accident and health plans (including sick pay and disability pensions) if your employer paid for the policy.
  • Alimony or separate maintenance payments received from and deductible by your spouse or former spouse.
  • Life insurance proceeds from a policy you cashed if the proceeds are more than the premium you paid.
  • Profits from businesses and professions (Federal Schedule C or C-EZ).
  • Your share of profits from partnerships and S Corporations (Schedule E).
  • Profits from farming (Federal Schedule F).
  • Pensions, annuities, and endowments. 
  • Lump sum distributions. 
  • Gains from the sale or exchange (including barter) of real estate, securities, coins, gold, silver, gems, or other property (Schedule D).
  • Gains from the sale of your personal residence (Federal Form 2119).
  • Rents and Royalties (Schedule E). 
  • Your share of estate or trust income (Schedule E).
  • Prizes and awards (contests, lotteries, and gambling winnings).
  • Earned income from sources outside the United States.
  • Directors fees. 
  • Fees received as an executor or administrator of an estate.
  • Embezzled or other illegal income. 
  • Refunds of federal income tax if deducted in a prior year and resulted in a tax benefit.
  • Payments received as a member of a military service are taxable except for combat pay and certain allowances.
  • Property transferred in conjunction with performance of services.
  • Jury duty pay. 

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Article Details
Views: 3053 Created on: Jun 15, 2013
Date updated: Jan 05, 2022
Posted in: States, Alabama

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