All income is to be reported on your Alabama return and is subject to Alabama tax unless it is specifically exempt by state law.
Examples of income you must report include:
- Business income
- Life Insurance (proceeds from a policy you cashed if the proceeds are more than the premium you paid)
- Rental income
- Capital gains
Income that is not reported to Alabama includes:
- Retirement benefits
- Life Insurance (proceeds received because of a person's death)
For a complete list of income that needs to be reported and income that is excluded, please refer to the Alabama instructions.