Alabama federal income tax deduction worksheet 2025

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(2)(a) FEDERAL INCOME TAX DEDUCTION FOR RESIDENTS: Net federal income tax may be deducted for the taxable year in which paid or accrued. Taxes are deductible only by the person or entity upon whom they are imposed. A cash basis taxpayer may allocate his federal income tax deduction on the cash basis or accrual basis.
Yes. Federal income tax may be deducted for the taxable year in which paid or accrued, according to the method of accounting used in computing taxable income.
According to the IRS, the taxes and fees that taxpayers cannot claim as SALT deductions include, but are not limited to: Federal income taxes. Social security taxes. Transfer taxes, such as taxes imposed on the sale of property.
Taxpayers using the Single and Married Filing Separately filing statuses are entitled to a $1,500 personal exemption. Taxpayers using the Married Filing Jointly and Head of Family filing statuses are entitled to a $3,000 personal exemption.
You can find this worksheet displayed as Table 21-3 on page 157 of IRS Publication 17 Your Federal Income Tax For Individuals. Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.

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CONSTITUTIONAL PROVISIONS 2 percent on first $500 of taxable income. 4 percent on next $2,500. 5 percent on all over $3,000.
Six states allow an unusual income tax deduction for federal income taxes paid. Missouri, Montana and Oregon limit these deductions by capping and/or phasing out the deduction, while Alabama, Iowa and Louisiana offer what amounts to an unlimited deduction.
Nondeductible taxes You may not deduct certain taxes and fees on Schedule A, including but not limited to: Federal income taxes. Social security taxes. Transfer taxes (such as taxes imposed on the sale of property).

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