On Mon, 13 Apr 2009 18:04:11 EDT, Harlan Lunsford <lunstax[at]bellsouth.netwrote:

- quote -

Well, a few comments, which may explain why my confusion.

The Alabama Form 40 (for residents) and the instructions both speak
directly to IRA taxable distributions, and how to calculate that. In
addition, there is a separate line on Form 40 (Line 4), where the IRA
distribution is reported. No such line is present with regard to the 40NR
(non-resident) form.


- quote -

Not the way I read it.

"Distributions from an Individual Retirement
Arrangement (IRA) including SEPs and DECs, if you
excluded these amounts in a prior year."

If this had stated something like "if you had deducted contributions to the
IRA in previous years", then it would make sense to me. But it does not
state that.
--ron

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On Mon, 13 Apr 2009 18:04:11 EDT, Harlan Lunsford <lunstax[at]bellsouth.netwrote:

- quote -

Thanks for the info, Harlan. Sure wish it had been spelled out more
clearly. Now I have to send them another $500! (Fortunately, I can do it
electronically for free).
--ron

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On Mon, 13 Apr 2009 18:04:11 EDT, Harlan Lunsford <lunstax[at]bellsouth.netwrote:

- quote -

Apparently, so also is one of the helpful people at the Alabama dep't of
Revenue!
--ron

--
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Ron Rosenfeld wrote:
- quote -

And that line you just mentioned is the line on which the IRA
distribution should be included along with any other "regular" pensions.
So the answer to your question is YES, Total income in column B on page
2 of the AL form 40NR should include it.

After all, the instructions you quote say as much, therefore.......

Taxcut is wrong. DEAD wrong.
tell 'em so.

And you may quote me.

Harlan Lunsford, EA n LA
(that's Lower Alabama so you'll know. grin)

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On my federal form 1040, I have taxable IRA distributions.

On my Alabama 40NR (I was a non-resident for the entire year), this
distribution was NOT carried over to my Total Income line on the AL 40NR by
TaxCut. (All of my other income was carried over properly).

The instructions are confusing to me, a non-resident (who has never claimed
an IRA deduction in Alabama), and asking two different people at the
Alabama dep't of revenue resulted in two different and opposite answers.

Anyone here have any knowledge as to whether a federally taxable IRA
distribution, for someone who has never been an AL resident should be
included in one's *total* income column on the Alabama 40NR?

Taxcut clearly thinks it should not be included.

For what it's worth, from the Alabama 2008 Form 40NR Booklet:

==========================================
The following kinds of income should be reported
on Forms 40, 40A, or 40NR and related forms and
schedules.
.....
Distributions from an Individual Retirement
Arrangement (IRA) including SEPs and DECs, if you
excluded these amounts in a prior year.
============================================

And on the forms, there are no lines labeled IRA distribution. The
"closest" line is labeled "Pensions and Annuities"

Thanks.
--ron

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >