SB293 Alabama 2017 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2017

Title

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

Summary

SB293 expands the adjusted gross income range eligible for Alabama's maximum standard deduction on individual income tax returns.

What This Bill Does

The bill amends Section 40-18-15 to widen the AGI range that qualifies for the maximum standard deduction. It also keeps an optional standard deduction option, calculated as either 20% of AGI or a fixed amount based on filing status and tax year, with specific rules about when spouses must elect it. Nonresident deductions are adjusted to align with Alabama-source income and federal rules, and the act becomes effective immediately upon passage, repealing conflicting laws.

Who It Affects

• Alabama resident individual income taxpayers across filing statuses who would now be eligible for the maximum standard deduction due to the expanded AGI range.
• Taxpayers who might choose between itemizing deductions and taking the optional standard deduction (including rules about filing jointly or separately and spousal election requirements).

Key Provisions

• Expands the adjusted gross income range within which a taxpayer can claim the maximum standard deduction on Alabama individual income tax returns.
• Creates an optional standard deduction option equal to 20% of adjusted gross income or a fixed dollar amount, with filing-status-based caps and transitional rules for different years.
• Specifies how deductions for nonresidents are calculated, tying them to Alabama-sourced income and required federal-deduction equivalencies where applicable.
• Repeals conflicting laws and makes the act effective immediately after governor approval.

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