HB411 Alabama 2017 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2017

Title

Taxation, adjusted gross income range expanded for maximum standard deductions, Sec. 40-18-15 am'd.

Summary

HB411 would expand the adjusted gross income range for Alabama's maximum standard deduction on individual income tax.

What This Bill Does

It broadens the income range eligible for the maximum standard deduction. It maintains an optional standard deduction option based on 20% of adjusted gross income or a fixed amount, with different limits by filing status and year. It also clarifies nonresident deduction rules, ensuring deductions reflect Alabama-source income, and it becomes effective immediately upon passage.

Who It Affects

• Alabama residents filing individual income tax returns who would qualify for the expanded maximum standard deduction (higher AGI range).
• Nonresident and part-year resident taxpayers with Alabama-source income, who would have deductions limited or allocated based on Alabama-specific income and sourcing rules.

Key Provisions

• Expands the adjusted gross income range eligible for the maximum standard deduction under 40-18-15.
• Provides an optional standard deduction option equal to 20% of AGI or the lesser of $2,000 (individual) or $4,000 (married filing jointly), with year-by-year adjustments.
• Updates standard deduction amounts and thresholds by filing status for tax years after 2017 (including single, head of family, married filing jointly, and married filing separately).
• Preserves the existing deduction framework tied to federal tax rules and applies nonresident deduction rules proportionally to Alabama-sourced income.
• Enacts immediate effectiveness upon passage and repeals conflicting laws.

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