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Alabama non-Resident and IRA distribution

On my federal form 1040, I have taxable IRA distributions.

On my Alabama 40NR (I was a non-resident for the entire year), this distribution was NOT carried over to my Total Income line on the AL 40NR by TaxCut. (All of my other income was carried over properly).

The instructions are confusing to me, a non-resident (who has never claimed an IRA deduction in Alabama), and asking two different people at the Alabama dep't of revenue resulted in two different and opposite answers.

Anyone here have any knowledge as to whether a federally taxable IRA distribution, for someone who has never been an AL resident should be included in one's *total* income column on the Alabama 40NR?

Taxcut clearly thinks it should not be included.

For what it's worth, from the Alabama 2008 Form 40NR Booklet:

=========================================The following kinds of income should be reported on Forms 40, 40A, or 40NR and related forms and schedules. .... Distributions from an Individual Retirement Arrangement (IRA) including SEPs and DECs, if you excluded these amounts in a prior year. =========================================== And on the forms, there are no lines labeled IRA distribution. The "closest" line is labeled "Pensions and Annuities"

Thanks.

--ron

Reply to
Ron Rosenfeld
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And that line you just mentioned is the line on which the IRA distribution should be included along with any other "regular" pensions. So the answer to your question is YES, Total income in column B on page

2 of the AL form 40NR should include it.

After all, the instructions you quote say as much, therefore.......

Taxcut is wrong. DEAD wrong. tell 'em so.

And you may quote me.

Harlan Lunsford, EA n LA (that's Lower Alabama so you'll know. grin)

Reply to
Harlan Lunsford

Apparently, so also is one of the helpful people at the Alabama dep't of Revenue!

--ron

Reply to
Ron Rosenfeld

Thanks for the info, Harlan. Sure wish it had been spelled out more clearly. Now I have to send them another $500! (Fortunately, I can do it electronically for free).

--ron

Reply to
Ron Rosenfeld

Well, a few comments, which may explain why my confusion.

The Alabama Form 40 (for residents) and the instructions both speak directly to IRA taxable distributions, and how to calculate that. In addition, there is a separate line on Form 40 (Line 4), where the IRA distribution is reported. No such line is present with regard to the 40NR (non-resident) form.

Not the way I read it.

"Distributions from an Individual Retirement Arrangement (IRA) including SEPs and DECs, if you excluded these amounts in a prior year."

If this had stated something like "if you had deducted contributions to the IRA in previous years", then it would make sense to me. But it does not state that.

--ron

Reply to
Ron Rosenfeld

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