Article: 50130
If you are an Alabama resident or part-year resident, and you paid income taxes to another state, you may be eligible for a Credit for Taxes Paid to Other States on your Alabama tax return. This credit helps avoid double taxation on the same income.
Claiming a Credit
To claim the credit, complete the Schedule CR form by following these steps:
- Go to the State Taxes section.
- Select I’d like to see the forms I’ve filled out or search for a form.
- Choose Alabama.
- Click on the Credits tab.
- Select and open the form titled Credit for Taxes Paid to Other States.
- Enter the income and tax details for the other state.
- For full-year residents, enter any direct amounts, or override amounts as needed.
- For part-year residents, ensure that the period and income match between states and enter the relevant amounts.
- Click Save.
Full-Year Residents of Alabama
You may qualify for the credit if you:
- are a full-year resident of Alabama
- paid income taxes to another state on income that is also taxable in Alabama
Part-Year Residents of Alabama
You may qualify for the credit if all of the following are true:
- You lived in Alabama for part of the year,
- You earned income during that time that was also taxed by another state,
- Your Alabama and other-state tax returns cover the same period and report the same income.