AL – Alabama Health Insurance Premium Deduction Form 40 (Resident)

Table Of Contents


Article: 50154

Overview

Alabama resident taxpayers may deduct 100% of the premiums they pay as part of an employer-provided health insurance plan, provided the following conditions are met:

  • The taxpayer is employed by an employer with fewer than 25 employees, and
  • The taxpayer earns $50,000 or less in wages, and
  • The taxpayer reports an Alabama adjusted gross income (AGI) of $75,000 or less, or $150,000 or less if married filing jointly, on their Alabama individual income .

This deduction applies only to qualifying premiums paid under eligible employer-sponsored health insurance plans.

Reporting of Alabama Form 40 – Health Insurance Premium Deduction (Resident)

To report the eligible insurance premium amounts for the Alabama deduction, follow the steps below:

  1. Go to the State taxes section.
  2. Select I’d like to see the forms I’ve filled out or search for a form.
  3. In the drop list, select Alabama.
  4. Select the General tab.
  5. Select the 40 – Income Tax Return – Pg 2 screen.
  6. Enter the intended amount on line Health Insurance Deduction under Part II.
  7. Click Save to apply changes.

Additional Information

See the Alabama Form 40 instructions for more information.

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