HB346 Alabama 2017 Session

Summary

Primary Sponsor

Chris BlackshearRepresentative

Republican

Session

Regular Session 2017

Title

Income tax, optional increased standard deduction for qualifying taxpayers, established, Sec. 40-18-15.7 added

Summary

HB346 creates an optional, simplified short-form Alabama income tax filing with an increased standard deduction for qualifying residents, effective for tax years beginning after 2017.

What This Bill Does

It establishes a simplified filing option and allows an optional increased standard deduction for eligible single filers or those filing jointly who meet specific income and other criteria. Those electing the option file a department-provided short form and must forego federal deductions, credits, and exemptions; the deduction amount is the greater of a fixed amount or the regular Alabama standard deduction. The Department may issue rules, and the act takes effect for tax years after 2017.

Who It Affects

• Qualifying Alabama residents (single filers or married filing jointly) with Alabama gross income under $100,000, no non-wage income, no dependents or dependent-related deductions, no itemized deductions, no income adjustments, no federal deduction, no credits, not required to make estimated payments, and no gains or losses; they may opt to file a simplified short form and claim the increased standard deduction.
• Taxpayers who do not meet these eligibility criteria; they would not qualify for the optional increased standard deduction or the simplified short form and would continue filing under current law.

Key Provisions

• Adds new 40-18-15.7 to authorize an optional increased standard deduction for qualified persons.
• Eligibility criteria: Alabama resident; single or married filing jointly; Alabama gross income < $100,000; $0 non-wage income; no dependents or dependent-related deductions; no itemized deductions; no income adjustments; no federal deduction; no credits; not required to make estimated payments; no gains or losses.
• Deduction amounts: single filers may claim $2,250 or the greater of the standard deduction under 40-18-15; married filers may claim $4,500 or the greater of the standard deduction under 40-18-15.
• Eligible taxpayers may claim a personal exemption; only the personal exemption and the optional increased standard deduction are allowed if this option is chosen.
• Electing taxpayers must voluntarily forego the federal income tax deduction, credits, and exemptions otherwise available.
• Taxpayers electing the option must file on a simplified short form provided by the Department.
• The Department may issue rules to administer the act; the act repeals conflicting laws; effective for tax years beginning after December 31, 2017.

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

Subjects

Income Tax