Alabama has made the following changes to their tax code for the 2022 tax year.
Standard Deduction and Dependent Exemption – Acts 2022-292 and 2022-297 increases the standard deduction and changes the threshold for the dependent exemption. See page 9 for updated standard deduction chart and page 10 for updated dependent exemption chart.
Certain tax credits are now required to be pre-approved through My Alabama Taxes (MAT) at www.myalabamataxes.alabama.gov. Please see the credit instructions in this booklet and Schedule OC instructions for more information.
Storm Shelter Credit - Act 2021-540 provides for an income tax credit for eligible taxpayers in the lesser amount of $3,000 or 50% of the total cost associated with the construction, acquisition, and installation of a qualified storm shelter at their primary residence. See Schedule OC instructions for more information.
AAA Scholarship Granting Organizations Credit - Act 2022-368 amends the
tax credit provisions related to scholarship granting organizations (SGO). It raises the credit amount allowed from 50% to 100% of the taxpayer’s liability, not to exceed $100,000 annually (previously $50,000). See Schedule OC instructions for more information.