Alabama Itemized Deductions

Changes You Should Note

The itemized deductions you may claim on your Alabama return are similar to the deductions allowed for Federal purposes; however, certain items may be treated differently. Please see the line by line instructions which follow for an explanation of these differences.

Some taxpayers should itemize their deductions because they will save money. See Itemized or Standard Deduction on page 18/19 of the instructions for the AL 40 for a description.

Schedule A must be completed in detail if you elect to itemize your deductions instead of claiming the standard deduction.

If you itemize, you can deduct part of your medical and dental expenses, part of your unreimbursed employee business expenses, amounts you paid for certain taxes, interest, contributions, and other miscellaneous expenses. You may also deduct certain casualty and theft losses.

Married, Filing Separate Returns. If you are married and filing separate Alabama returns, both spouses may itemize their deductions or both may claim the standard deduction. One spouse cannot itemize and the other claim the standard deduction. Each spouse may claim only the itemized deductions he/she actually paid.

Part-year Residents. Individuals becoming or ceasing to be residents during the year are entitled to claim ONLY the itemized deductions that were actually paid while a resident of Alabama. The Department will permit you to prorate a deduction (such as interest or taxes) based on the number of months you were a resident if the deduction was paid during the entire year and the amount actually paid while a resident cannot be determined.

Medical and Dental Expenses

Taxes (Other than Federal Income Tax) You CAN Deduct

Interest You Paid

Gifts to Charity

Casualty and Theft Losses

Miscellaneous Deductions Expenses Subject to the 2% Limit

Qualified Long-term Care Coverage