The Alabama Itemized Deductions section is used to enter certain deductions that may not automatically transfer from your federal return. Complete this section only if you are itemizing deductions on your Alabama return.
Pathway to this entry is:
Alabama State Return > Itemized Deductions
Who Should Complete This Section?
Complete this section only if you are claiming itemized deductions on your Alabama return.
If you are using the Alabama standard deduction, these entries generally do not apply.
Prior Year Self-Employment Tax Paid
Enter any self-employment tax paid during the current tax year that relates to a prior tax year.
Only enter amounts that have not already been deducted elsewhere on the return.
You may need information from:
- Prior-year tax returns.
- Federal Schedule SE.
- Payment records.
Railroad Retirement Tax Paid - Tier 1 Contributions
Enter any Railroad Retirement Tax paid for Tier 1 contributions during the tax year.
Only Tier 1 contributions should be entered in this field.
You may need information from:
- Form W-2.
- Railroad Retirement statements.
- Employer records.
Additional Qualified Long-Term Care Insurance Premiums
Long-term care insurance premiums included on your federal return are generally transferred automatically to the Alabama Schedule A.
Use this field only if you have additional qualified long-term care insurance premiums that were not allowed on the federal return but are deductible for Alabama purposes.
Premiums paid under a qualifying long-term care insurance contract may be deductible in full on the Alabama return.
What Documentation Should I Keep?
Keep copies of:
- Long-term care insurance statements.
- Premium payment records.
- Insurance contracts.
- Other documentation supporting the premiums paid.
How Do Itemized Deductions Affect My Return?
Amounts entered in this section may:
- Increase your Alabama itemized deductions.
- Reduce Alabama taxable income.
- Lower Alabama tax liability.
- Increase an Alabama refund.
- Reduce the amount owed on the return.
Important Information
- Complete this section only if you are itemizing deductions on your Alabama return.
- Long-term care insurance premiums already transferred from the federal return should not be entered again.
- Only enter additional qualified premiums that were not allowed on the federal return.
- Only Tier 1 Railroad Retirement Tax contributions should be entered in the Railroad Retirement field.
- Keep documentation supporting all entries made in this section.
Additional Information
Review your federal Schedule A, insurance records, payment records, and retirement tax documents before completing the Alabama Itemized Deductions section. Accurate entries can help ensure you receive all deductions available under Alabama law.