Article: 50167

Overview

Alabama residents and nonresidents who made contributions to an Alabama ABLE (Achieving a Better Life Experience) savings account during the tax year must manually enter this information in the Alabama data entry section.
These contributions are reported on line 15, Part II, page 2, of Alabama Form 40 or line 7, Part II, page 2, of Alabama Form 40NR.
Pursuant to Act 2021-514, beginning January 2021, an individual taxpayer may deduct up to $5,000 per year for contributions made by or on behalf of the individual to an Alabama ABLE savings account.

Reporting of Alabama 40 – Contribution to ABLE Savings Account (Resident)

For Alabama residents who contributed to an Alabama ABLE savings account during the tax year will report it on Part II, page 2, of Form 40. 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 contribution amount on line Contribute to an ABLE savings account under Part II.
7. Click Save to apply changes.

Additional Information

See the Alabama OC Credits Instructions for more information.

Reporting of Alabama 40NR – Contribution to ABLE Savings Account (Resident)

For Alabama nonresidents who contributed to an Alabama ABLE savings account during the tax year will report it on Part II, page 2, of Form 40NR. 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 40NR – Income Tax Return – Pg 2 screen.
6. Enter the premium amount under All Sources and then the contribution amount on line Contribute to an ABLE savings account under Part II.
7. Click Save to apply changes.

Additional Information

See the Alabama 40NR Instructions for more information.