![]() And while state income taxes aren’t deductible, taxes paid to another state may qualify for a tax credit. These taxes include state and local sales taxes, taxes you paid for someone else and income taxes paid to a foreign country. Meanwhile, Alabama doesn’t allow you to deduct some taxes. ![]() FICA tax (Social security and Medicare).If you paid taxes on any of the following items during the last tax year, you could deduct them from your taxable income: Itemized Deductions Medical and Dental ExpensesĪlabama allows you to deduct the portion of your medical and dental expenses that is more than 4% of the total Alabama AGI you’ve spent on those items during the 2021 tax year.Įxpenses like co-pays, prescription drug costs, and hospital care are eligible for this deduction, while employer-sponsored health insurance premiums, the cost for basic Medicare insurance, and funeral and burial costs are not. Notably, married couples filing separately must choose to take the same type of deduction, unless both taxpayers have been living separately for the full tax year. Here is an overview of what you can expect: The allowable deduction decreases as your income increases. If you take the standard deduction, the total amount will depend on your Alabama adjusted gross income (AGI) and filing status. Income Tax Deductions for Alabama Standard Deduction Here is a list of our partners who offer products that we have affiliate links for. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. Second, we also include links to advertisers' offers in some of our articles these “affiliate links” may generate income for our site when you click on them. This site does not include all companies or products available within the market. ![]() The compensation we receive for those placements affects how and where advertisers' offers appear on the site. First, we provide paid placements to advertisers to present their offers. This compensation comes from two main sources. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective.
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