If you choose to file Married Filing Separately (MFS) on your Alabama return, Alabama requires both spouses to use the same deduction method. This section allows you to indicate whether the separate Alabama returns will use the Standard Deduction or Itemized Deductions.
Pathway to this entry is:
Alabama State Return > Basic Information > Married Filing Separate on the Alabama Return - Standard or Itemized Deductions
When Would I Complete This Section?
Complete this section if:
- You filed a joint federal return but are filing separate Alabama returns; or
- You are otherwise filing Married Filing Separately for Alabama purposes.
The deduction method selected in this section affects both spouses' Alabama returns.
Can One Spouse Itemize While the Other Takes the Standard Deduction?
No.
Under Alabama law, if married taxpayers file separate Alabama returns, both spouses must use the same deduction method.
This means:
- If one spouse itemizes deductions, the other spouse must also itemize.
- If one spouse claims the standard deduction, the other spouse must also claim the standard deduction.
What Is the Standard Deduction?
The standard deduction is a fixed deduction amount allowed by Alabama based on your filing status and income.
Taxpayers who choose the standard deduction do not need to list individual deductible expenses.
This method is often simpler because it does not require separate documentation of itemized expenses.
What Are Itemized Deductions?
Itemized deductions are specific deductible expenses that are reported individually on the Alabama return.
Examples may include:
- Medical and dental expenses.
- Taxes paid.
- Mortgage interest.
- Charitable contributions.
- Casualty and theft losses.
- Other allowable itemized deductions.
Taxpayers generally choose to itemize when their allowable deductions are greater than the standard deduction.
How Do I Decide Which Method to Use?
You may wish to compare:
- The Alabama standard deduction; and
- Your allowable Alabama itemized deductions.
The method that provides the larger deduction may result in a lower Alabama tax liability.
Because both spouses must use the same method when filing separately, the impact on both Alabama returns should be considered before making a selection.
How Does This Affect My Return?
Your deduction method may:
- Increase or decrease Alabama taxable income.
- Increase or decrease Alabama tax liability.
- Affect the refund amount.
- Affect the balance due on the return.
The actual impact depends on your income, filing status, and deductible expenses.
Important Information
- This section applies only to taxpayers filing Married Filing Separately on the Alabama return.
- Both spouses must use the same deduction method.
- One spouse cannot itemize while the other claims the standard deduction.
- Itemized deductions should be supported by appropriate records and documentation.
- Review both deduction methods before making a selection.
Additional Information
If you are filing separate Alabama returns, compare your allowable itemized deductions to the Alabama standard deduction before selecting a deduction method. Choosing the most beneficial option may help reduce your Alabama tax liability.