Alabama allows for some retirement income to be excluded while some needs to be included as income on your return. Please refer to the Alabama instructions for a complete list.
The program will not include the retirement income on the return unless you make a manual entry adding the income to the State Section.
Program Entry
- State Section
- Adjustments to Income
- Answer the questions regarding the taxability of the retirement income
For your convenience, the federal amount of the retirement income is shown for you to refer to.
See also Is my military pension/retirement income taxable to Alabama?