AL – Firefighter Insurance Premium Deduction

Table Of Contents


Article: 50131

Certified Alabama firefighters (both residents and nonresidents) may be eligible to deduct 100% of premiums paid for qualifying cancer insurance coverage when filing their Alabama individual income tax returns. This benefit was established under Act 2019-361 and applies to cancer insurance premiums not deducted from federal gross income or any other law.

Premiums paid with pre-tax dollars are not deductible under this provision. You must ensure that no portion of the premiums was already deducted at the federal level or paid pre-tax.

Retain documentation of your certification and payment history for your records.

Eligibility Requirements

To qualify for the deduction:

  • You must be a certified firefighter in the state of Alabama.
  • You must have paid premiums during the tax year for cancer insurance coverage as defined in Act 2019-361.
  • The premiums must have been paid with after-tax dollars.
  • The deduction must not have been claimed under federal income or any other deduction.

Alabama Residents – Form 40

  1. Go to the State Taxes section.
  2. Click I’d like to see the forms I’ve filled out or search for a form.
  3. Select Alabama.
  4. On the General tab, open 40 – Income – Pg 2.
  5. Enter the premium amount on Part II, line 14 for Firefighter’s Insurance Premiums.
  6. Click Save.

See the Form 40 Booklet for details.

Nonresidents of Alabama – Form 40NR

  1. Go to the State Taxes section.
  2. Click I’d like to see the forms I’ve filled out or search for a form.
  3. Select Alabama.
  4. On the General tab, open 40NR – Income Tax Return – Pg 2.
  5. Enter the premium amounts on Part II, line 6 for All Sources and Alabama Income under Firefighter’s Insurance Premiums.
  6. Click Save.

See the Form 40-NR Booklet for details.

Tags
state tax form tax credit tax deduction dependent health insurance refund irs form schedule k1 estimated tax tax return