The Alabama Payments section is used to enter certain payments and credits that apply to your Alabama tax return. Most taxpayers will only need to complete this section if they made a payment directly to Alabama or want to apply a refund to next year's taxes.
What You'll Find in the Alabama Payments Section
Extension Payment
Enter the amount you paid with your Alabama extension request.
Use this field only if you made a payment when requesting an extension of time to file your Alabama return.
Important: An extension gives you more time to file, but not more time to pay. Any tax due should be paid by the original filing deadline to help avoid penalties and interest.
Apply Refund to Next Year's Taxes
If you are receiving an Alabama refund, you can choose to apply part or all of that refund to next year's Alabama tax return instead of receiving it as a refund.
Enter the amount you want applied to next year's taxes.
Schedule CP (Schedule K-1 Payments), Composite Payments and Pass-Through Entity Credits
Use this section to enter Alabama composite tax payments or pass-through entity (PTE) tax credits that were paid on your behalf by an Alabama S corporation, partnership, estate, or trust. These amounts are often reported on your Alabama Schedule K-1 or other supporting tax documents you receive from the entity.
You may need to enter information here if:
- You are a shareholder of an Alabama S corporation.
- You are a partner in an Alabama partnership.
- You received an Alabama Schedule K-1 reporting tax paid or credits allocated to you.
- An Alabama estate or trust paid tax on your behalf.
These payments and credits may reduce the amount of Alabama tax you owe or increase your refund.
Before entering an amount, review your Alabama Schedule K-1 and related tax documents to verify the payment or credit being claimed.