• All governments require resources in order to function. Governments at the local, state and federal level typically rely on a variety of taxes to provide these resources. A few states do not have an income tax and rely more heavily on sales taxes. Most states, including Alabama, rely on a combination of sales taxes and income taxes as their primary sources of revenue.
  
  

Residency

• The Alabama Department of Revenue advises taxpayers in the state to carefully check filing requirements prior to completing an Alabama state income-tax return. Individuals who are permanent residents of Alabama are required to pay Alabama state income taxes on their entire income regardless of whether the income was generated within or outside the state of Alabama. Military personnel who are stationed in Alabama, but who do not claim Alabama as their permanent residence, are not subject to Alabama state income taxes. Students who attend school outside Alabama, but who are dependents of Alabama permanent residents, are considered permanent residents of the state and must file an Alabama state income tax return.
  
  

Forms

• The Alabama Department of Revenue requires taxpayers to file their state income tax on either Form 40, Form 40A or Form 40 NR. Taxpayers whose only source of income for the tax year was wages or salary and who do not claim any adjustments to their income may file their tax return on Form 40A. Taxpayers who file on Form 40A may not itemize their deductions or claim a credit for taxes paid to a different state. Individuals who claim a loss or income on Schedules C,D, E or F may not use Form 40A. Resident taxpayers who do not meet all of the requirements for filing their Alabama state tax return on Form 40A must file their return on Form 40. Certain non-residents who earned income in Alabama or from Alabama sources are required to file a state income tax return on Form 40NR.
  
  

Time Frame

• Taxpayers may file their Alabama state income tax return at any time between January 1 and April 15, inclusive, for the previous tax year. In the event April 15 falls on a non-business day, the due date will be extended to the next business day. The Alabama Department of Revenue recommends filing as soon as possible after the first of the year. Tax returns filed after the April 15 due date will be subject to penalties and interest. The Alabama Department of Revenue offers an automatic six-month extension for filing tax returns. This extension applies only to filing the tax return, and not to the payment of taxes. Any taxes due must still be paid by April 15 in order to avoid interest and penalties.