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Alabama: 2021 Federal Income Tax Deduction & Impact of Act 2022-37

23 Mar 22
Craig Smith
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Full Press Release from the Office of Governor Kay Ivey – Click Here

This is referring to the Federal American Rescue Plan Act (ARPA) and the impact on 2021 Alabama state returns for an increased federal income tax deduction.

The tax changes related to Act 2022-37 will be released live in TaxSlayer on Monday, March 28th. Alabama will begin accepting electronically filed returns with the latest schema on Tuesday, March 29th after 7:00am Central Time. From Sunday, March 27th at 9:00pm ET until Tuesday morning, we (TaxSlayer) will not send any Alabama state returns until they are ready to receive the latest schema.

Any Alabama returns electronically filed prior to this update WILL NOT need to amend. Alabama will automatically re-calculated impacted returns. For AL TP’s that filed their AL return using My Alabama Taxes or filed via paper prior to this update WILL need to amend their AL return to take advantage of this increased federal income tax deduction if applicable.

If you believe you will have AL returns at your site(s) that may be impacted by Act 2022-37, do not file them until Monday after our deployment.

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