Tax

Alabama Taxes

Alabama Taxes

November 30
00:00 -0001

Alabama Taxes

FULL List to Alabama Tax Forms

Individual Income Tax Forms

Form 40X Individual Income Tax Return 

Form IT: 489 Taxpayer Refund Information

Form 40X Instruction

Corporate Income Tax Forms

Form 20C Corporation Income Tax Return 

Form 20C-C Consolidated Corporate Income Tax Return

Sales Tax Forms

Exemption Form

Department of Revenue Sales Tax E-Filing 

Property Tax Forms

Form ADV-LD-10 Certificate of Redemption

Form ADV-LD-13 Certificate of Land Sold and Bought By the State

Form ADV-40 Business Personal Property Return

 

Primary Concerns:

Of recent concern in the state of Alabama has been the state government’s rulings in regard to the 2008 Stimulus package, which were decided and determined in a special session of the state legislature in 2008. 

 

Individual Income Tax:

All individuals living in Alabama or drawing an income in Alabama, either through employment or investment, are subject to state income tax laws. For single individuals, the rates are 2% of taxable income of less than $500, 4% of taxable income between $500 and $3,000, and 5% of all income over $3,000.

Full or part time resident’s single individuals must file tax returns if their gross income is over $4000.  Head of Family must file if gross income is over $7,700.

Alabama businesses are obligated to engage in withholding taxes from an employee’s income, which can be computed under the rates outlines above, or more comprehensively using standard deductions computed with any relevant dependency exemptions. 

 

Corporate Income Tax:

All businesses that reside in Alabama or earn income in Alabama are subject to Alabama state income tax, and the current income tax rate is 5%.  All liabilities over $750 must be tendered to the state via electronic funds transfer (EFT).

A business in Alabama is not usually viewed as being distinctive by the nature of the corporation.

 

Property Tax:

All property in Alabama falls into four classes, each with their own assessment rate: Utililty (30%), private transportation (15%), private property (10%), and unclassified property (20%).  The assessed value is then multiplied by the millage rate, which is determined both on the size of the property as well as local municipal services, such as schools.  From the Unadjusted Tax Bill, all exemptions are deducted, and that provides the taxpayer with their final, adjusted tax bill.

 

Sales Tax:

Alabama sales tax generally works on a system of having a set base tax, which is 4%, and then charging an additional percent of the purchase price based on the nature of the purchase or the means by which it is purchases.  Other tax rates that could be added to the base involve automotive sale (2%, total 6%), farm machinery (1.5%, total 5.5%), manufacturing machinery (1.5%, total 5.5%), and amusement (4%, total 8%). 

Lodging rates are very specified in Alabama by locations, with counties that are in the Mountain Lakes area charging a 5% rate, while all other lodging in the state is 4%.

All utilities up to $40,000 charge a 4% rate, with amounts higher requiring a flat amount plus an additional percentage.  Telephone services have a flat tax of 6%, with mobile devices also charging 6% on all charges and services that come with the device.

 

Share

About Author

admin

admin

Related Articles

Tax News

Woman Sentenced to Five Years Following Tax Fraud Scheme The plan seemed perfect to the three young Sacramento women: use internet tax software like TurboTax, steal Social Security numbers, and start filing fraudulent tax returns in the hopes of getting large refunds.
Proposed Pregnancy Tax Break Creates Controversy Proposed Pregnancy Tax Break Creates Controversy Michigan lawmakers have proposed a controversial new law that would give tax breaks to some pregnant women.
Statistics of Income Bulletin Released Statistics of Income Bulletin Released The Internal Revenue Service (IRS) released the 2012 issue of the Statistics of Income Bulletin last Wednesday.
More Tax Relief for Victims of Hurricane Sandy More Tax Relief for Victims of Hurricane Sandy The Internal Revenue Service (IRS) has announced more tax relief for businesses and individuals affected by Hurricane Sandy in Connecticut, New Jersey, and New York.
2013 Inflation Adjustments and Pension Plan Limitations 2013 Inflation Adjustments and Pension Plan Limitations On October 18, 2012, the Internal Revenue Service announced the increase of certain tax benefits because of inflation adjustments and 2013 pension plan limitations.
Farmers Affected by Drought Have Time to Replace Livestock Farmers Affected by Drought Have Time to Replace Livestock According to the Internal Revenue Service, farmers and ranchers affected by the huge drought in the United States have an extension to replace livestock and defer tax on gains made through forced sales.
Executive Director Pleads Guilty to Illegal Campaign Contributions Executive Director Pleads Guilty to Illegal Campaign Contributions On October 1, 2012, the US Attorney’s Office for the District of New Jersey announced that Thomas J.
Filing and Payment Extensions End October 15th Filing and Payment Extensions End October 15th On September 28, 2012, the Internal Revenue Service announced that taxpayers who received tax-filing extensions will have to file the forms by October 15.
Much Awaited Statistics of Income Bulletin Much Awaited Statistics of Income Bulletin On September 24, 2012, the Internal Revenue Service released the Summer 2012 issue of the Statistics of Income Bulletin.
Victims of Straight-Line Winds in WV Eligible for Tax Relief Victims of Straight-Line Winds in WV Eligible for Tax Relief On September 20, 2012, the Internal Revenue Service declared that victims of severe storms in parts of West Virginia that occurred on or around June 29, 2012, may receive tax relief.
Update Tax Relief for Hurricane Isaac Update Tax Relief for Hurricane Isaac The Internal Revenue Service has announced tax relief for victims of Hurricane Isaac on September 5, 2012, and the IRS has updated the areas for tax relief on September 17, 2012.
Obama Calls for Tax Credits for Unemployed Veterans Obama Calls for Tax Credits for Unemployed Veterans Calling on all members of Congress to put the country ahead of politics, President Obama called for action to help unemployed and injured Veterans land jobs during the difficult economy.
Payroll Tax Cut May Not Be Extended Payroll Tax Cut May Not Be Extended Republicans, who have already blocked much of President Obama's $447 billion jobs creation bill, may now be moving towards not extending the payroll tax cut as it expires at the end of the year.
France to Increase Tax, Cut Budget During Financial Difficulty France to Increase Tax, Cut Budget During Financial Difficulty With the European financial crisis creating havoc among Euro Zone member's economy, France has been forced to re-tool their budget in light of an unbalanced budget.

Guide To: Tax Lawyers

Guide to Finding Tax Lawyer Guide to Finding Tax Lawyer How do I find a Tax Lawyer?Tax lawyers specialize in helping clients who need guidance in navigating the complex tax codes of the United States and local state taxes.