In 2019, many Alabama taxpayers who mailed their state returns waited more than eight weeks for refunds, while those who chose to e-file often received theirs in just 30 days. That delay can mean the difference between paying urgent bills on time and waiting weeks for money that’s already yours. Filing your Alabama income tax return accurately and on time is not just compliance—it’s a way to protect your finances and claim every dollar you deserve.

This guide explains how to file your Alabama tax return for the 2019 tax year, whether you are a full-year, part-year, or nonresident with Alabama-source income. You’ll learn to determine if you need to file, choose the correct form, calculate taxable income, apply deductions and credits, and decide whether to e-file or mail your return. We’ll also show how details from your federal return, such as taxes paid, can affect your state return.

Following the steps outlined here will prepare you to meet deadlines, avoid common errors that delay refunds, and reduce tax liability. Whether filing individually or on joint returns, taking the right approach—and doing it early—can help you sidestep penalties, secure a faster refund, and keep more of what you’ve earned.

Who Needs to File an Alabama Tax Return?

Not every taxpayer must submit an Alabama income tax return. Still, the Alabama Department of Revenue has clear income thresholds determining who must file for the 2019 tax year. These rules apply to full-year, part-year, and nonresidents, based on your filing status and adjusted gross income.

Full-Year Alabama Residents

You must file if your adjusted gross income meets or exceeds these amounts for 2019:

  • Single: $4,000 or more
  • Head of Household: $7,700 or more
  • Married Filing Separately: $5,250 or more
  • Married Filing Jointly: Threshold varies depending on combined income

Part-Year Residents 

If you lived in Alabama for only part of the year, you must file if your gross income during your time as a resident is:

  • Single: $4,000 or more
  • Married Filing Separately: $5,250 or more

Nonresidents

If you earned income from Alabama sources and your total income meets or exceeds the state’s filing thresholds, you are generally required to file an Alabama state tax return. This includes wages from employment within the state and business income, rental earnings, or other taxable income tied to Alabama. The thresholds vary based on your filing status—such as single, married filing jointly, or head of household—and are set each year by the Alabama Department of Revenue to ensure taxpayers with sufficient earnings contribute to state revenue.

These filing requirements are designed to maintain fairness in the tax system by ensuring that individuals with income above the limits pay their share toward funding public services and infrastructure in Alabama. Even if you earn income from sources outside of Alabama, you may still need to file if part of your income originates within the state. Additionally, some taxpayers who don’t meet the threshold may still choose to file voluntarily, particularly if they had Alabama taxes withheld during the year, as the process can allow them to claim a refund and recover money owed to them.

Understanding whether you need to file is crucial for meeting your obligations, avoiding penalties, and taking advantage of potential refunds. Failing to file when required can lead to late fees, interest charges, and possible legal consequences. By reviewing your income sources and comparing them to the state thresholds, you can determine your filing status early and prepare the necessary documents before the deadline. Being proactive helps ensure compliance and prevents last-minute issues when tax season arrives.

Understanding Alabama State Taxes and Rates

Alabama’s individual income tax system for the 2019 tax year is based on graduated rates that increase as your taxable income rises. This means the percentage of tax you pay depends on your income level, filing status, and any deductions or credits you qualify for. Understanding these rates and rules will help you calculate your tax liability more accurately and plan for the possibility of a refund or payment.

Tax Rates for 2019

  • 2% on the first $500 of taxable income
  • 4% on the next portion of taxable income
  • 5% on taxable income above the set thresholds for your filing status

Personal Exemptions and Standard Deduction

The Alabama Department of Revenue provides minimum personal exemptions to reduce taxable income:

  • Single and Married Filing Separately: $1,500
  • Married Filing Jointly and Head of Household: $3,000

You can also choose between the standard deduction and itemizing deductions. The standard deduction is simpler for many taxpayers, but if your eligible expenses exceed it, itemizing on Schedule A may further reduce your tax liability.

Unique Deduction for Federal Taxes Paid

Alabama is one of the few states that allows you to deduct the federal income tax you paid from your state taxable income. This can be significant, especially for higher earners, and is often overlooked when preparing a state return.

Why It Matters

By understanding how taxable income is calculated, which deductions apply, and how credits can lower your tax liability, you can better prepare your Alabama return and avoid paying more than necessary. These rules apply to individuals and joint returns, directly impacting the final amount you owe or the refund you receive.

Forms You Need for Filing

Choosing the correct form is essential in preparing your Alabama income tax return 2019. The Alabama Department of Revenue provides several form options, each designed for a specific type of taxpayer. Using the wrong form can delay processing, affect your refund, or even cause your return to be rejected.

Form 40 – Individual Income Tax Return

  • Designed for full-year Alabama residents
  • Suitable for reporting all types of income, including wages, business earnings, capital gains, and retirement income
  • Required if you are itemizing deductions or claiming multiple credits

Form 40A – Short Form

  • For full-year residents with simpler tax situations
  • Often used by wage earners who take the standard deduction
  • Not suitable for complex returns or certain credits

Form 40NR – Nonresident or Part-Year Resident Return

  • For taxpayers who lived in Alabama only part of the year or who are nonresidents with Alabama-source income
  • Requires you to report only the portion of income earned in Alabama

Common Schedules

  • Schedule A: Itemized deductions
  • Schedule B: Interest and dividend income
  • Schedule CR: Credit for taxes paid to other states
  • Schedule D: Capital gains and losses
  • Schedule W-2: Wage and salary information
  • Schedule OC: Other credits, such as volunteer emergency responder credit

All forms and instructions are downloaded from the Alabama Department’s official website. Before filling out your form, determine whether you will file electronically or by mail, as the submission process may vary. Selecting the correct forms and schedules at the start will save time, reduce errors, and help ensure you receive your refund promptly.

Step-by-Step Process: How to File Your Alabama Tax Return

Filing your Alabama income tax return for 2019 is easier when you follow a structured process. Whether you are an individual taxpayer or filing joint returns, these steps will help you prepare an accurate return, avoid errors, and improve your chances of receiving a faster refund.

Gather Your Documents

Before you start, collect all relevant financial records:

  • W-2s from all employers
  • 1099 forms for interest, dividends, unemployment benefits, or business income
  • Records of self-employment earnings
  • Receipts for deductions such as medical expenses, charitable contributions, and property taxes paid
  • Prior year’s federal return for reference

Having these documents ready ensures you enter accurate information and claim all eligible deductions and credits.

Determine the Correct Form and Filing Method

Choose the form that matches your residency status and the complexity of your return. Then decide between e-filing and mailing your state return:

  • E-filing is faster, more secure, and often free through My Alabama Taxes
  • Paper filing may be necessary in limited situations, but it takes longer to process

Prepare Your Alabama Return

Enter your income, deductions, and credits accurately. Calculate your taxable income to determine your tax liability. Be sure to apply any credits for taxes paid to other states or qualifying expenses to reduce what you owe.

Sign and Submit

All Alabama returns must be signed by both spouses if filing jointly. Review your return for completeness before submitting:

  • E-file directly through the Alabama Department’s online portal
  • If mailing, use the correct address for your payment or refund status

These steps can make filing smoother, minimize errors, and help you receive any refund faster.

How to Pay Alabama State Taxes or Get a Refund

Once your Alabama income tax return for the 2019 tax year is complete, the next step is to either pay any balance due or arrange to receive your refund. The Alabama Department of Revenue offers several secure payment and refund options for individuals and businesses.

Paying Your Alabama State Taxes

Electronic Payment (Recommended)

  • Use the My Alabama Taxes (MAT) portal to pay by ACH bank draft with no extra fee.
  • Credit card payments are also accepted through MAT or phone, but a convenience fee applies.

Mail-in Payments

  • If paying by check or money order, include Form 40V Payment Voucher.
  • Never send cash through the mail.
  • Mail to the correct address based on whether your return includes a payment or is a zero-balance filing.

Deadlines and Penalties

Taxes must be paid by the April filing deadline, even if you request an extension. Late payment triggers a late filing penalty and interest on the unpaid balance.

Receiving a Refund

Direct Deposit

  • Fastest method, typically within 30 days for e-filed returns.
  • Provide accurate bank routing and account numbers on your return.

Paper Check

  • Mailed refunds may take 6 to 8 weeks or longer, especially for paper-filed returns.

Tracking Your Refund

  • Check your refund status through the Alabama Department’s website or by logging into your MAT account.
  • When checking online, have your Social Security number and the exact refund amount.

By choosing electronic payment or direct deposit for refunds, taxpayers can avoid the painfully slow paper process, reduce mailing delays, and have more control over their finances.

Common Filing Mistakes and How to Avoid Them

Even minor errors on your Alabama income tax return can delay refunds, increase your tax liability, or trigger unnecessary correspondence from the Alabama Department of Revenue. For the 2019 tax year, many filing issues were easily preventable with careful preparation.

1. Incorrect or Missing Social Security Numbers

A single wrong digit can cause your return to be rejected. Double-check the Social Security numbers for yourself, your spouse, and any dependents before filing.

2. Math Errors

Incorrect calculations, primarily when totaling taxable income or credits, can change the amount you owe or the size of your refund. Use e-filing software or the Alabama Department’s online system to reduce calculation mistakes.

3. Missing Forms or Schedules

Attaching necessary schedules, such as Schedule CR for credits or Schedule W-2 for wage information, can delay processing. Review the filing instructions carefully to ensure all required forms are included.

4. Not Claiming Available Deductions or Credits

Many taxpayers overlook deductions like the federal taxes paid deduction or credits for taxes paid to other states. Missing these can mean paying more tax than necessary.

5. Mailing to the Wrong Address

If you file by mail, use the correct address for your filing type—payment, refund, or zero balance.

6. Forgetting to Sign the Return

Unsigned returns are considered incomplete and will be returned to the taxpayer. Both spouses must sign when filing joint returns.

By preparing your return carefully, reviewing your entries, and using available electronic filing tools, you can avoid these easily preventable mistakes and keep your refund or payment process on track.

Deadlines, Extensions, and Amended Returns

Meeting Alabama’s tax deadlines is essential to avoid penalties, interest, and unnecessary delays in processing your return. For the 2019 tax year, the due date for filing your Alabama income tax return was April 15, 2020. If April 15 fell on a weekend or state holiday, the deadline shifted to the next business day.

Extensions

If you received a federal extension from the IRS, Alabama automatically granted you a six-month extension to file, moving the due date to October 15, 2020. This extension applies only to filing your return, not to paying taxes owed. Any unpaid balance after April 15 was subject to a late filing penalty and interest, so estimating and paying on time was essential to limit extra charges.

Unemployment Income

For residents who received unemployment benefits in 2019, those payments were considered taxable income by Alabama. Make sure to include the Form 1099-G when preparing your return to avoid underreporting and being taxed later through an amended filing.

Amended Returns

If you discover an error or omission after filing, use Form 40X to submit an amended Alabama return. Note: The reason for the change includes any updated forms or schedules. Amended returns can be mailed, and sending them to the Alabama Department of Revenue’s designated address for amendments is recommended.

Special Notes for Residents and Nonresidents

  • Residents: Must report all income, even if taxed by other states, but may qualify for a credit on Schedule CR.
  • Nonresidents: Must report only Alabama-source income, but are still subject to Alabama’s filing requirements if they meet the income threshold.

Awareness of these deadlines, rules, and procedures can help taxpayers avoid penalties, file more accurately, and comply with state and federal requirements.

Frequently Asked Questions (FAQs)

Do I have to pay Alabama income tax if I filed a federal return?

Filing a federal return does not replace your obligation to pay Alabama income tax. If you are an Alabama resident and your taxable income meets the state’s filing threshold, you must also file Alabama tax returns. The state return ensures Alabama collects its share of taxes based on income earned in the state, even if it was reported to the IRS on your federal return.

Can I e-file my return from Alabama for free?

Alabama residents can e-file their state return for free through the My Alabama Taxes portal. This method shortens refund processing time from weeks to as little as 30 days. It also reduces the chance of math errors common in paper filings. Submitting your tax returns electronically provides immediate confirmation from the Alabama Department of Revenue, giving taxpayers peace of mind that their filing was successfully received.

Is e-filing required for an Alabama state return?

No, but it is highly recommended. At the same time, Alabama residents can still file paper tax returns; e-filing offers faster processing, fewer errors, and quicker refunds. The system uses information from your federal return to streamline data entry, and many taxpayers find it more convenient to file both their federal and state returns electronically simultaneously. This ensures accuracy and helps avoid delays.

Does my Alabama state return include information from my federal return?

Your Alabama state return relies on several figures from your federal return, such as adjusted gross income, taxes paid, and certain deductions. Alabama residents should ensure all details match tax returns to prevent processing delays or audit notices. Any discrepancies between the two filings can cause the Alabama Department of Revenue to request additional documentation or corrections before processing your refund.

What if I filed my federal return but forgot my Alabama state return?

If you are an Alabama resident and meet the income threshold, you must file an Alabama state return even if your federal return is complete. Failing to do so can result in penalties, interest, and delayed refunds. Filing both tax returns promptly ensures you comply with state law and prevents future complications, especially if Alabama taxes were withheld from your paycheck.