Do you have to pay Alabama state tax if you are retired?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

Retirees are not exempt from paying Alabama state tax.

However, Alabama does not tax Social Security, Federal retirement benefits, Alabama state retirement benefits, and periodic distributions from private defined benefit pension plans. A "defined benefit" pension plan is a traditional pension plan where the employer guarantees a certain benefit when you retire. The does not include a 401k type of plan which is a "defined contribution" plan where you take your chances with your own investments.

Distributions from IRA, 401k, etc plans are taxable in much the same manner as they are on your federal return. If you made deductible contributions to an IRA plan before 1982, you may be eligible for an additional adjustment.

All other types of income are taxable the same for retirees as for anyone else.
39 people found this useful

What states have the lowest taxes on retired military pay?

States that don't tax retired military pay:. Alabama, Alaska, Florida, Hawaii, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Yo

What states do not tax retirement pay?

There are different kinds of retirement pay. Some, such as Illinois, exempt all retirement pay from taxes. Others exempt Social Security benefits, and/or military pensions, an

Why do you have to pay taxes if you work and retired?

Do you think that a retired AIG executive who is receiving a $10 million annual pension should be exempt from taxes? We base income taxes on how much you make. We give a ge

Do NJ retired teachers have to pay state income tax?

There are no special exceptions for teachers that I can find. There are some exclusions that might benefit retired people in general. Social Security and Railroad Retirem

Do you have to pay taxes on your SS and your state retirement?

Yes, I have to pay federal taxes on my NC state retirement but not state income tax. Not all of my social security is taxable, depending on my adjusted income. The amount of s

If you work after retirement do you pay taxes on that?

Yes. As long as you are still living and have enough gross worldwide income you will be required to file income tax returns and pay any income taxes that may be due. Even so
In Uncategorized

Do I have to pay taxes on my retirement?

Yes, you have to pay taxes on your retirement at a rate determined by your retirement income, which should be much lower than your working income. Yes, you have to pay taxes o

Does a state of Alabama resident have to pay car tax bought from an out of state dealer?

No. when car is brought back from whatever state it was purchased, Alabama Dept of motor vehicle - either state or county- will charge you sales tax when you exchange out of s