HB262 Alabama 2018 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2018

Title

Income tax, individuals, standard deduction increased based on certain adjusted gross income for, Sec. 40-18-15 am'd.

Summary

HB 262 would widen the income range that qualifies for the maximum standard deduction on Alabama's individual income tax.

What This Bill Does

It amends Section 40-18-15 to expand the adjusted gross income range that can receive the maximum standard deduction for Alabama individual income tax. This change means more taxpayers could claim the maximum standard deduction instead of a lower amount. The bill maintains other deduction options (the optional standard deduction and itemized deductions) and continues to limit nonresident deductions to Alabama-sourced income. The measure becomes effective immediately after passage and approval by the Governor.

Who It Affects

• Alabama resident individual income taxpayers who file a return and whose adjusted gross income falls within the new expanded range, potentially enabling them to claim the maximum standard deduction.
• Nonresident individuals filing Alabama returns, whose deductions are limited to Alabama-sourced income and prorated, but who may be impacted by changes in the maximum deduction amount and its applicability to their Alabama income.

Key Provisions

• Amends 40-18-15 to expand the adjusted gross income range allowable for a maximum standard deduction.
• Effective immediately following passage and governor's approval; repeals conflicting laws as needed.

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