If I am a resident of Alabama, but work in another state or country, am I required to file an Alabama tax return? - Alabama Department of Revenue (2024)

FAQs

If I am a resident of Alabama, but work in another state or country, am I required to file an Alabama tax return? - Alabama Department of Revenue? ›

If I am a resident of Alabama, but work in another state or country, am I required to file an Alabama tax return? Yes. According to Reg. 810-3-2-.

Yes. According to Reg. 810-3-15-. 21 –Nonresident individuals receiving taxable income from property owned or business transacted (including wages for personal services) within Alabama are taxable on such income from within Alabama.

Nonresidents must file a return if their Alabama income exceeds the allowable prorated personal exemption. Part year residents whose filing status is “Single” must file if gross income for the year is at least $4,000 while an Alabama resident.

According to Alabama Form 40 Instructions, "Individual taxpayers who are residents of Alabama are subject to tax on their entire income whether earned within or outside of Alabama. This is true regardless of their physical presence within Alabama at any time during the taxable year."

An Alabama Resident is someone who is domiciled in Alabama. Your domicile is where you live permanently. A person can only have one domicile. Individuals not domiciled in Alabama that maintain a permanent home in Alabama, or spend more than seven months of the taxable year in Alabama are considered to be residents.

If I am a resident of Alabama, but work in another state or country, am I required to file an Alabama tax return? Yes.

The easy rule is that you must pay nonresident income taxes for the state in which you work and resident income taxes for the state in which you live, while filing income tax returns for both states. However, this general rule has several exceptions. One exception occurs when one state does not impose income taxes.

Generally, you're considered a statutory resident by any state where you spend more than 183 days (half the year), and you may be liable for taxes in that state. To be certain of your residency status, check with the Department of Revenue in your state to learn what is required for your situation.

Disability retirement payments (and other benefits) paid by the Veterans Administration. Workman's compensation benefits, insurance damages, etc., for injury or sickness. Child support. Gifts, money, or other property you inherit or that was willed to you.

Withholding Requirement on Sales/Transfers of Real Property & Tangible Personal Property by Nonresidents. Section 40-18-86, Code of Alabama 1975, provides for income tax withholding at a rate of 3% or 4% on sales or transfers of real property and associated tangible personal property by nonresidents of Alabama.

Do I have to file an Alabama nonresident tax return? ›

According to Reg. 810-3-15-. 21 –Nonresident individuals receiving taxable income from property owned or business transacted (including wages for personal services) within Alabama are taxable on such income from within Alabama. They should file a Nonresident Individual Income Tax Return, Form 40NR, each year.

Present a valid Alabama driver's license or non-driver's identification card (with the exception of qualified active duty military, spouse and dependents stationed in Alabama or college students) Reside continuously in Alabama for 90 days.

So as long as you earned income, there is no minimum to file taxes in California.

You normally cannot establish Alabama residency for purposes of tuition and fees while maintaining ties to another state or country (e.g. state tax liability, driver's license, voter's or vehicle registration).

Valid Alabama Driver License or Identification Card displaying applicant's current address. Voter Registration Card. Residential Mortgage Contract. Current Lease or Rental agreement for housing.

If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).

The main takeaway: A recent case in Alabama concluded that a nonresident's wages earned while working remotely out-of-state were subject to income tax, and this represented a departure from long-standing policy regarding when a nonresident's wages are subject to income tax.

Withholding Requirement on Sales/Transfers of Real Property & Tangible Personal Property by Nonresidents. Section 40-18-86, Code of Alabama 1975, provides for income tax withholding at a rate of 3% or 4% on sales or transfers of real property and associated tangible personal property by nonresidents of Alabama.

If AL is where your permanent home is located, then you are considered a resident of AL for tax purposes. You need to file a return with AL and report your income from all states. Normally the way this works is that your resident state would allow you a credit for taxes you paid to any other state.

Georgia does not have reciprocity agreements with its neighboring states. This means that if you are a legal resident of another state and earn money in Georgia, you will need to file a Georgia return.