(a) A person qualifying for the optional increased standard deduction is an Alabama resident, single person, or married persons filing a joint return that meet all of the following criteria:
(1) Alabama gross income of less than one hundred thousand dollars ($100,000).
(2) Zero dollars ($0) of non-wage income.
(3) Has no dependents or is not claiming any expense or deduction associated with any dependents.
(4) Does not claim any itemized deductions.
(5) Does not claim any adjustments to income as prescribed in Section 40-18-14.2.
(6) Does not claim the federal income tax deduction as provided in Section 40-18-15.
(7) Does not claim any credits that are available to offset any portion of the tax levied in this chapter.
(8) Is not required to make estimated payments as provided for in Sections 40-18-80.
(9) Is not claiming any gain or loss as prescribed in this chapter.
(b) Notwithstanding Section 40-18-15, the standard deduction allowed for returns filed pursuant to this section shall be as follows:
(1) Single persons shall be allowed a standard deduction of two thousand two hundred fifty dollars ($2,250), or the standard deduction allowed by Section 40-18-15, whichever is greater.
(2) Taxpayers filing married filing jointly as defined in Section 40-18-27 shall be allowed a standard deduction of four thousand five hundred dollars ($4,500), or the standard deduction allowed by Section 40-18-15, whichever is greater.
(c) Persons qualifying for the optional increased standard deduction are allowed to claim a personal exemption in accordance with Section 40-18-19. The personal exemption and optional increased standard deduction are the only exemption or deduction that shall be allowed by persons opting to claim the optional increased standard deduction.
(d) Persons qualifying for the optional increased standard deduction must voluntarily forego their right to claim the federal income tax deduction as allowed by Section 40-18-15.
(e) Any persons qualifying for the optional increased standard deduction, pursuant to this section, must acknowledge that they are voluntarily foregoing other deductions, credits, and exemptions that may otherwise be available to such persons.
(f) Persons qualifying for and electing to claim the optional increased standard deduction shall file the return on a simplified short form and in a manner prescribed by the department.
(g) The department may promulgate rules to assist with the administration of this section.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.