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Alabama Taxes 2014

Every American State has got its own revenue policies where Alabama is no different.  Alabama’s revenue system has been in existence since 20th century and the tax guide has evolved a lot since then. Earlier, there were different departments collecting different kinds of taxes. But today, the entire revenue department operates under the Alabama Department of Revenue headed by the Revenue Commissioner.

Here’s some information on income tax rates as well as sales tax, real estate tax and inheritance tax rates – the Alabama tax guide.

Alabama Personal Income Tax

The rates for people filing income tax returns individually are different from the rates charged for married people who file their returns jointly.

For single persons / married people who file separately:

  • For the first $500 of taxable income, the rate charged is 2%.
  • The next slab is between $501 and $3000.  The rate is 4%.
  • For taxable income exceeding $3000, the income tax rate is 5%.

For married people who file their returns jointly

  • For the first $1000 of taxable income, the income tax rate is 2%.
  • The next slab is about $1000 and or below $6000, the rate is 4%.
  • For taxable income above $6000, income tax is charged at 5%.

The tax exemption allowed for every taxpayer is $1500.  He/ she can also claim an additional $1500 exemption for the spouse.  For the taxpayer’s dependents, the exemption allowed ranges from $300 to $1000.

People who reside in Alabama are allowed to claim a maximum of $7500 of standard deduction.  The amount depends on the level of income.  For married residents, the maximum standard deduction is $4000.

Alabama Sales Tax

According to the Alabama tax guide, the State collects sales tax on 16 different categories of goods.

Alabama Real Estate Taxes

Alabama has a separate Property Tax Division which is responsible for valuing and assessing properties in the state and provides guidance on the tax rate. Each county has its own tax rate known as Millage rate.

Alabama Estate Taxes

Alabama does not charge estate taxes for the estates of people who died after December 31, 2004.

Alabama E-filing

Residents of Alabama can file their tax returns online.  Taxpayers need to enter the information asked for and the calculations are made automatically where the amount of tax to be paid appears on the screen.  One just has to take the printout of the form that has been filled.

Alabama Filing Date

All are supposed to file their income tax returns on/before April 15 every year.  If this falls on a weekend, then the last date will be the first business working day after April 15.
The department maintains a web site www.revenue.alabama.gov to access tax information which serves as the Alabama tax guide.

Prior Year Alabama "Form 40" Individual Income Tax Forms
2000 2001 2002 2003 2004
2005 2006 2007 2008 2009

Where to Mail FEDERAL IRS Tax Forms within Alabama:

IRS Form Address IRS Form Address
1040 : Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0002
1040EZ : Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0014
1040A : Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0015
1040X : Department of the Treasury
Internal Revenue Service
Austin, TX 73301

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