HB24 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

First Special Session 2015

Title

Income tax, deductions for federal FICA taxes, tax on wages removed, self-employment taxes reduced, Sec. 40-18-15 am'd.

Summary

HB24 would remove the deduction for FICA taxes and limit the deduction for self-employment taxes when computing Alabama income tax.

What This Bill Does

It changes how Alabama income tax is calculated by removing the deduction for FICA taxes paid from taxable income and by limiting how much self-employment taxes can be deducted. These changes apply to tax years starting in 2015 and thereafter, and they would reduce the amount of deductions available for some taxpayers. Other deductions in Section 40-18-15 would remain in place.

Who It Affects

• Wage-earner taxpayers in Alabama with FICA taxes withheld would no longer be able to deduct those FICA taxes from their Alabama taxable income.
• Self-employed taxpayers in Alabama would face a limited deduction for self-employment taxes, reducing the deduction they can claim against Alabama income.

Key Provisions

• Remove the deduction for FICA taxes paid from Alabama taxable income.
• Limit the amount of self-employment taxes that can be claimed as a deduction against income.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation